Reading bank

Unit 6
1 Before you read, check that you know the meaning of the words in bold. Choose the
correct definition, a or b, for each word. Use a dictionary if necessary.
1 The investigators found that financial corruption had taken place over a long period
tham nhung
of time.
a dishonest or illegal behaviour
b a series of serious mistakes
2 The president was involved in a major financial scandal.
a an event that shocks people because it is illegal
b an idea that leads a company to success
bi truy to
3 The employee was prosecuted for posting private data online.
a suspected of a crime
b charged with a crime hoi lo
4 The parents were so desperate for the students to pass the test that bribery was not
uncommon.
a buying illegal material from the internet
b illegally offering money or gifts in return for services
5 Finally, the product is sold to the end user through an intermediary. ( trung gian
a a person/company that sells goods or services to the public
b a person/company that acts as a means of communication between other
people/companies ( thao túng )
6 The bank had manipulated figures to make it look as though the investments were doing
well when, in reality, they weren’t.
a change or edit data in order to misinform
b steal money and then replace it
7 Employees are often influenced by peer pressure from colleagues.
a a feeling that you must do the same things as other people
b a time when you feel you are not doing as well as other people
8 If they continue to act illegally, they will lose their liberty.
a respect for someone’s feelings or rights
b freedom

2 Read the text and complete the gaps (1–5) with the sentences (A–E).
A People who are new to an organisation, and who might be surprised at unethical behaviour,
come to assume it is acceptable.
B How can companies ensure they behave properly while still meeting sales targets,
especially in industries where bribery and payments to intermediaries are common, even
when they are illegal?
C It has also set up a 24-hour ethics hotline, which is available to staff worldwide.
D They need to start with the values: how they want to do their business.
E Or the Wells Fargo fraud, in which employees set up fake customer accounts.

3 Match the organisations (1–3) with the illegal activities mentioned in the text (a–d).
There is one extra activity which you do not need to use.
1 Rolls-Royce a presented false technical results
2 Volkswagen b opened illegal accounts without client permission
3 Wells Fargo c avoided paying tax
d changed financial records

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Reading bank

4 Choose the sentence which best summarises paragraphs 3 and 4 of the text.
a When staff are put under pressure, they will usually act illegally.
b A company with a bad reputation is more likely to be corrupt.
c A mix of factors can create a working climate where illegal actions may occur.
d There is no way to stop corruption in a global company.

5 Complete the sentences with these words from the text.

cost incentives lines pressure status

1 Fear of missing out on financial incentives , such as large bonuses, may

encourage the manipulation of data to make profits appear better.
2 When a company demands unrealistic targets, it puts staff under pressure
to perform.
3 Ambition is positive until the desire for status and professional titles
becomes more important than ethics.
4 Davies was determined to get the bonus at any cost .
5 A good manager is one that can be trusted not to cross ethical lines .

Corruption scandals show why leaders should highlight ethics

Recently, Rolls-Royce agreed to pay £671m to the authorities in the UK, the US and Brazil. In
return, the company will not be prosecuted for a number of charges, including corruption and false
accounting. The case, which is still continuing with the investigation of individuals, raises important
questions. 1
5 For Rolls-Royce, the answer lies in various changes. The company has introduced a staff training
programme on its policies on bribery, gifts and hospitality. It has reduced the number of intermediaries
it uses around the world, and says those it has kept understand what is expected of them. 2 D
Is this enough? Why ‘good companies’ do bad things is one of the most complex questions in business.
Take the Volkswagen diesel scandal, for example, in which the carmaker manipulated emissions tests.
10 3
They both involved highly respected companies. In the case of Wells Fargo, staff were
under pressure to hit targets. The push to make up the numbers often causes unethical behaviour.
The reason employees behave badly is usually more complicated, however. It is often a combination
of financial incentives, desire for status among colleagues and peer pressure that pushes employees
to cross ethical lines. They think that because everyone is doing it, it must be right. Whatever doubts
15 they have about what they are doing disappear if they notice not only that the practice is considered
‘normal’, but also that it is encouraged by those at the top. 4 ‘If it is wrong,’ they think,
‘someone would have put a stop to it.’
In the above cases, someone did eventually put a stop to it. There were fines and penalties and
employees’ liberty was removed. For companies to ensure they do not reach that point, their boards
20 and leaders must make firm decisions. 5 When it comes to financial targets, the board
needs to say, ‘We will not reach the numbers at any cost.’