Flashcards in Misc. Deck (38)
What is cognitive dissonance?
- Describes the feeling of discomfort that results from holding two conflicting beliefs
Why do good, smart people do bad things?
- Destabilizing pride
- See enterprise as self extension
- People don't learn from mistakes
Give an example of drift
- Mid 1990s executives at Bristol Myers Squibb counted on big results from Capoten (new drug for lowering blood pressure
- Studies of pregnant women began to suggest negative impact on fetuses, but it was ignored
- Confident executives drifting into making the wrong decision
What is a good analogy for drift?
"The Boiling Frog" (inability of people to react to significant changes that occur gradually)
Is religion a moral panacea?
- Bernard Cardinal Law: resigned in disgrace after failing to remove pedophile from the ministry
- Ken Lay: led regular bible studies
Who refused to allow porn on the Adelphia cable system?
Who led regular bible studies?
What can make moral failings hard to see?
What is a moral virus?
Why is power a moral virus?
- Might makes right attitude (my needs are more important)
Do people learn from their mistakes very often?
How can one mindfully mitigate drift?
Look to company guidelines
How can one mindfully mitigate destabilizing pride?
Share dilemmas and true motives with at least one person, a confidant
How can one mindfully mitigate self-deception?
Set aside time for introspection (when have I served the ultimate good for the function vs. myself)
How can one mindfully mitigate power?
Develop and maintain a well-informed conscious; may require the support of a faith community
Ethical fading is often due to what?
In a survey of 31 libraries in the US and UK, what books are more likely to be stolen than any other book?
Who was the banker that dodged $66,000 in train fares in London?
Jonathan Paul Burrows
What did he do?
- Hadn't bought a ticket from his original station
- Instead bought a pass that cost less
What happened to Jon Burrows when he got caught at a train station?
Fired from company ( to maintain
Why did Jon Burrows do it?
Drift, destabilizing pride, power (did it once, and didn't get caught)
What was Philip Zimbardo's famous experiment called?
Stanford Prison Experiment
What is the CPA's role when preparing a tax return?
What is the CPA's role when providing tax planning advice?
Advisory/Advocate (but still have a responsibility to act ethically)
What is the CPA's role when representing the taxpayer?
Advisory/Advocate (but still have responsibility to act ethically)
What is the difference between tax avoidance and tax evasion?
Tax avoidance = legal
Tax evasion = illegal
What is the penalty for breaking the Congress Tax Code?
What is the penalty for breaking the AICPA Code?
What is the penalty for breaking state law?
Professional discipline (e.g. loss of license)