SCENARIO 10-6 Security in Electronic Transactions in the Banking, Communications

question 27

Multiple Choice

SCENARIO 10-6 Security in electronic transactions in the banking, communications and data exchange industry is still a major problem despite new technological advances.Many transactions are subject to misuse, and the Internet has certainly suffered more than its fair share of abuse and eavesdropping.
Jennifer Barr, CEO of cTech Group, is in the business of developing hardware and software aimed directly at improving computer security.The company is based in eastern Canada with a few branches in the U.S.Part of Barr's biggest problem is convincing people that their systems are secure.It is difficult to establish a confidence level within existing and potential customers that transmission of highly sensitive data can actually be very secure; customers like to have consistency of project managers and customer service personnel and this seems to be helpful in boosting customer confidence.
The company manufactures hardware in the form of stand-alone devices and plug-in boards, depending upon the application and type of computers being used.Corresponding software is custom-designed for mainstream clients such as banks, financial institutions, the Internet and others who deal with data transmission and receiving.cTech is about eight years old and has achieved its reputation through hard work and dedicated effort.
Jennifer's position is that the company should make substantial profits while maintaining a strong social presence in the business community.Openness, ethical business practices, empowerment, environmental concern and planned giving programs are hallmarks of the company.Despite this, the company is experiencing some stress in hiring and turnover.Some of the practices that are contributing to people leaving and new people not accepting jobs include:
(1) The stringent work ethic expecting employees to routinely work a 12-hour day.
(2) The achievement orientation of the organizations has become a "survival of the fittest" attitude, and for new employees there is little opportunity for training and mentoring.
(3) Personal and social life is not supported by work practices.
(4) The need to balance family life with the work situation is not recognized.
CTech's high turnover rate indicates the organizational culture is

• A)strong and therefore difficult to change
• B)formal and therefore difficult to change
• C)flexible and therefore easier to change
• D)assimilated and therefore deeply held by each individual who stays at cTech
• E)weak and therefore easier to change.

Understand the role of consumers' rights and consumerism in business ethics.

Evaluate the impact of organizational culture on ethical behavior and decision-making.

Understand the significance of ethics programs and codes of ethics in fostering ethical business environments.

Discern the connection between business ethics and corporate social responsibility (CSR).

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Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Spreadsheet

A digital tool allowing users to organize, analyze, and store data in tabular form, often used for financial calculation and management.

Job-Order Costing

An accounting method used to track the costs associated with producing specific jobs or batches, assigning material, labor, and overhead costs to each job separately.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including direct labor and materials, but excluding indirect expenses.