Vocabulary

cheat – мошенничать, обманывать

cheat smb out of his money – обманом выманивать деньги у кого-л

cheat on smb – вести себя нечестно по отношению к кому-л

rightful – законный, принадлежащий по праву

scam – махинация

misrepresent – представлять в ложном свете, искажать

divert – отвлекать (напр. прибыль на другие цели)

return – (зд) доход или прибыль с вложенных денег

lure – соблазнять, завлекать

sink – вкладывать (капитал)

oil wells – нефтяные скважины

fraudulent – обманный, мошеннический

tout – навязывать, рекламировать

first and second home mortgages – первая и вторая жилищные ипотеки

Ponzi scheme – махинация, известная как «финансовая пирамида»

shady companies – сомнительные компании

skyrocket overnight – стремительно возникать

con artists – профессиональные мошенники; (зд) с артистизмом

dupe – одурачивать

unwary investors – неосторожные (опрометчивые) вкладчики

expense account – счёт расходов; счёт подотчётных сумм

pad invoices – раздувать (увеличивать) счета

split the overcharge with the supplier – делить прибыль от завышенного

расхода с поставщиком

ploy – уловка, хитрость

play the stock market – спекулировать на фондовой бирже

fluctuations in stock prices – колебания цен на акции

insider trading – незаконные сделки с ценными бумагами и

использованием конфиденциальной информации

police – контролировать, прослеживать

before the word gets out – прежде, чем всё станет известным

COMPREHENSION QUESTIONS

1. What are two general ways that the businesses may cheat investors?

2. What does a Ponzi scheme mean? Give your example of this scam.

3. Explain the scam known as “diverting earnings or assets”.

4. What is insider trading, and how does it harm an investor in a company?

F. The Effort to Become More Ethical

Most companies are concerned about ethical issues, and many are trying to develop approaches for improving their ethics. More than 80 percent of large companies have adopted a written code of ethics, which defines the values and principles that should be used to guide decisions. By itself, however, a code of ethics cannot accomplish much. It must be supported by employee communications efforts, a formal training program, and a system through which employees can get help with ethically difficult situations. Ethical behavior starts at the top, where a strong leadership position by the CEO and other senior managers sets the tone for people throughout the company.

Another way companies support ethical behavior is by establishing ethics hot lines that encourage whistle-blowing – an employee’s disclosure of illegal, unethical, wasteful, or harmful practices by the company. Whistle-blowing can bring with it high costs: Public accusation of wrongdoing hurts the business’s reputation, requires attention from managers who must investigate, and damages employee morale. Whistle-blowers also risk being fired or demoted for reporting unethical behavior, and they often suffer career setbacks, financial strain, and emotional stress. The fear of such negative repercussions allows many unethical or illegal practices to go unreported. However, companies that are sincerely interested in operating ethically do work hard to respond appropriately to whistle-blowing. One way to encourage employees to speak up is to allow the whistle-blower to remain anonymous. As Daniel P. Westman, a lawyer and expert on whistle-blowing, says: “Any rational company that has something bad going on within it is going to want to know.”