WGU C206 Ethical Leadership Topic: Legal and Regulatory Questions and Answers(A+ Solution guide)

Dodd-Frank Wall Street Reform and Consumer Protection Act - Passed in the wake of the 2008- 2009 financial crisis. Dodd-Frank Wall Street Reform and Consumer Protection Act - The SEC will pay 10 to 30% of the amount the government recovers from financial fraud if the whistleblower provides original information leading to a recovery of more than a million dollars. False Claims Act - Whistleblowers who report corporate wrongdoing against the government to prosecutors can be awarded 15 to 30% of whatever damages the federal government recovers, which are to be three times the damages the government has sustained. False Claims Act - Since the government has recovered billions of dollars since the law's inception, this has become a powerful incentive for some employees to tell all to prosecutors. Sarbanes-Oxley Act (SOX) - Passed in 2002, this act provides whistleblowers in publicly traded companies with revolutionary new protections if they "make a disclosure to a supervisor, lawenforcement agency, or congressional investigator that could have a 'material impact' on the value of a company's shares." Sarbanes-Oxley Act (SOX) - Under the law, board committees must set up procedures for hearing whistleblower concerns; executives who retaliate can be held criminally liable and can go to prison for up to 10 years; the Labor Department can force a company to rehire a whistleblower who has been fired; and workers who have been fired can request a jury trial after six months. Sarbanes-Oxley Act (SOX) - Does not provide for financial incentives and does not protect employees at private companies. U.S. Sentencing Guidelines - The sentencing guidelines were designed to use a "carrot and stick" approach to managing corporate crime. The carrot provides incentives to organizations to develop a strong internal control system to detect and manage illegal behavior.U.S. Sentencing Guidelines - The guidelines propose that organizations establish and communicate compliance standards and set up communication, monitoring, reporting, and accountability systems. In this approach, the stick provides for severe punishment for organizations that are convicted of crimes and were not proactively managing legal compliance within the organization. criminal conduct - Establishing compliance standards reasonably capable of preventing ________________ high-level individuals - Assigning specific ________________ with responsibility to oversee those compliance standards discretionary; illegality - Exercising due care to ensure that ________________authority is not delegated to individuals with a propensity to engage in ________________ compliance standards; manuals - Taking necessary steps to communicate ________________ and procedures to all employees, with a special emphasis on training and the dissemination of________________ reporting system free of retribution to employees who report criminal conduct - Taking reasonable steps to achieve compliance with written standards through monitoring, auditing, and other systems designed to detect criminal conduct, including a ________________ failure to detect an offense - Consistently enforcing the organization's written standards through appropriate disciplinary mechanisms, including, as appropriate, discipline of individuals responsible for ________________ respond, prevent - After an offense is detected, taking all reasonable steps to ________________ and to ________________future similar conduct