Question

Sophie, the CFO of Slalom Ski Supplies, received an expensive watch from one of her company's vendors congratulating her on Slalom's recent merger with another company. Which threat, if any, to her compliance with the "integrity and objectivity rule," would accepting this gift create?

A) Conflict of interest
B) Financial fraud
C) Violation of compliance policies
D) No threat

Answer 1

Sophie's acceptance of an expensive watch from a vendor can create a conflict of interest, threatening her compliance with the integrity and objectivity rule in business ethics.

Step-by-step explanation:

The situation you've described involving Sophie, the CFO of Slalom Ski Supplies, deals with ethical conduct in a business environment. When Sophie receives an expensive watch from one of her company's vendors, it raises ethical concerns. Specifically, the threat to her compliance with the "integrity and objectivity rule" would likely be a conflict of interest. This is because accepting gifts of significant value may influence or appear to influence her decision-making, potentially leading her to favor the vendor in future business dealings to the detriment of her own company's interests. Ethical codes for many professions, including finance, often include titles and gifts policies that aim to prevent such conflicts of interest by prohibiting or limiting the acceptance of gifts. In some contexts, such as with federal officials, these policies are enforced by mandating that officials turn over gifts from foreign nations specifically to bar a conflict of interest.