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You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?

Options:

Yes - the lobbying group appears to be funded at least in part by your company so it is not independent and is therefore misleading people about its status

Maybe - depending on whether the lobbying group is funded by other airlines as well as your company

No - companies are entitled to fund any groups that they choose, particularly if it is in their financial interest. Neither party has done anything unethical

No - there is unlikely to be any connection between the payments and the group's aims. After all, companies regularly fund Non-Government Organizations (NGOs) and other types of organization

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Question 2

In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

Options:

The Professional Oversight Board for Accountancy

The International Federation of Accountants

The Financial Reporting Council

The Financial Review Board

Question 3

Which of the following is correct?

(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.

(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.

(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.

Options:

(i) and (ii) only

(ii) and (iii) only

(iii) only

(i) and (iii) only

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

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