Company X Has a Clearly Communicated Code of Ethics and a Whistle-Blowing

question 24

Multiple Choice

Company X has a clearly communicated code of ethics and a whistle-blowing program.Sara used the whistle-blowing system to alert the management about a fraud being committed by a senior employee in the human resource department.The company investigated the allegation and punished the fraudster.However,Sara was shocked to find later that everyone in her team knew that she was the one who blew the whistle.What could be a major issue with the program at the company?

• A)Unclear policies
• B)Lack of awareness about the program
• C)Management inaction
• D)Lack of anonymity

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Definitions:

Efficient Scale

The level of production at which a firm operates at the lowest average total cost, optimizing its scale of operations.

Average Total Cost

The total cost of production divided by the quantity of output produced. It includes all fixed and variable costs.

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Downward-Sloping Demand

A representation of the inverse relationship between price and quantity demanded, highlighting that consumers buy more of a good as its price decreases.