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Ronald is an accountant at Bradmink Corporation. He has come to know that his company has been embezzling large sums of money from its clients. Ronald then informs the authorities of his company's illegal activities. This scenario illustrates ___.

a) Whistleblowing
b) Collusion
c) Insider trading
d) Misappropriation

1 Answer

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Final answer:

The scenario where Ronald reports his company's embezzlement of funds to authorities is an example of whistleblowing. Whistleblowing is the act of exposing illegal or unethical activities within an organization, and there are laws like the Whistleblower Protection Act that protect individuals who take such actions.

Step-by-step explanation:

Ronald is an accountant at Bradmink Corporation and has discovered that his company has been embezzling money, which he reports to the authorities. This scenario illustrates whistleblowing. Whistleblowing occurs when an employee, or someone associated with an organization, reports misconduct or illegal activities being conducted within the company.

Corporate crimes like embezzlement can sometimes go unchecked within large organizations, and thus individuals like Ronald are crucial for maintaining legal and ethical standards. Protections for whistleblowers have been increased over time, with legislation such as the Whistleblower Protection Act of 1989 and the Whistleblower Protection Enhancement Act of 2012 designed to safeguard those who come forward.

Historically, the act of whistleblowing has played a significant role in exposing various scandals and misdeeds, serving as a form of check and oversight within bureaucracies and corporations.

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