Stephanie, the CFO of Love Pet Supplies, received an expensive watch from one of her company's vendors, congratulating her on Love's recent merger with another company. Which threat, if any, to her compliance with the "Integrity and Objectivity Rule" would accepting this gift create?
A. Self-interest threat.
B. No threat would be created.
C. Self-review threat.
D. Undue indulgence threat.
Answer (2)
Accepting the expensive watch poses a self-interest threat to Stephanie's compliance with the Integrity and Objectivity Rule, as it could influence her decision-making in favor of the vendor. This situation highlights the importance of maintaining ethical standards in business relationships. Ethical guidelines advise against accepting high-value gifts to prevent any appearance of bias or favoritism. ;
Accepting the expensive watch creates a self-interest threat for Stephanie's compliance with the Integrity and Objectivity Rule, as it may influence her decision-making towards the vendor. This situation underscores the importance of ethical standards in business to prevent bias or favoritism. Therefore, the correct choice is A. Self-interest threat.
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