Enron
Enron was primarily involved in what industry?
Enron
Theranos claimed it could perform many medical tests using only a tiny amount of what
Bernie Madoff became infamous for running this type of investment fraud.
Ponzi Scheme
True or False If a business decision is legal, it is automatically ethical.
False. Something can be legal but still unethical.
Which scandal fits this clue: fake investment returns?
Bernie Madoff
Enron appeared extremely successful while secretly hiding billions of dollars of this.
Debt
Who was the founder and CEO of Theranos
Elizabeth Holmes
Money from newer investors.
Customers, employees, owners, suppliers, government, and communities affected by a business are collectively called what?
Stakeholders
Which scandal fits this clue: misleading claims about revolutionary blood-testing technology?
Theranos
Executives used complicated partnerships to keep losses off Enron's financial statements. Why was this unethical?
It deliberately misled investors about the company's true financial condition.
Theranos repeatedly promoted technology that did not work as advertised. What major ethical principle did the violate.
Honesty/Truthfullness
What eventually happens to a Ponzi scheme if enough investors demand their money back.
A manager hires her brother instead of a better-qualified applicant without disclosing the relationship. What ethical problem is this?
Conflict of Interest/Nepotism
Which scandal fits this clue: hidden debt and deceptive accounting helped make failing comany look successful?
Enron
This Enron employee warned CEO kenneth Lay that the company could 'implode in a wave of accounting scandals'
Sharron Watkins
Why was deception at Theranos potentially more dangerous than deception in many ordinary businesses.
Incorrect blood test results could affect medical decisions and patient health.
Madoff maintained trust partly because of his reputation and prestigious positions. What lesson does this teach investors?
Reputation should not replace verification, due diligence, and oversight.
A company discovers a product defect that is unlikely to be noticed but could injure customers. Fixing it will be expensive. What should ethical leadership priortize?
Customer safety and transparent corrective action over short-term profit.
Enron, Theranos, or Madoff
Enron and Madoff
Enron employees lost retirement savings while some top executives sold stock before the collapse. Name the ethical issue illustrated by leaders protecting themselves while employees suffered.
A conflict between executives' self-interest and their duty to employees/shareholders.
Employees who raised concerns about Theranos faced pressure and intimidation. What business-ethics concept describes employees exposing wrongdoing?
Whistleblowing
Madoff's fraud continued for years despite warning signs. Besides Madoff himself, what system failed to adequately protect investors.
Regulatory/financial oversight and due diligence.
A company technically follows the law while deliverately exploiting a loophole that seriously harms customers. Explain why ethical analysis goes beond asking "Is it legal"
Ethics also considers fairness, honesty, harm, responsibility, and effects on stakeholders.
All three scandals share one fundamental ethical failure. Give the strongest one-word answer.
Deception/Fraud/Dishonesty/Greed