Chapter 4
Corporate ethics refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.
True or False?
What is False? Page 70
Transparency is a major trend behind the corporate social responsibility (CSR) phenomenon.
True or False?
What is True? Page 73
Members of a board of directors are not eligible to be a part of the audit committee of an organization.
True or False?
What is False? Page 95
The Foreign Corrupt Practices Act was introduced to more effectively control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies as they pursued international growth.
True or False?
What is True? Page 118
The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals of the early 2000s that covers the financial management of businesses.
True or False?
What is true? Page 124
Henry Ford II recognized the fact that corporations operate in an isolated environment.
True or False?
What is False? Page 72
There are four distinctive types of corporate social responsibility (CSR)—economic, ethical, altruistic, and strategic.
True or False?
What is False? Page 78 & 79
A board of directors is a group of individuals who oversee the governance of an organization.
True or False?
What is True? Page 94
The processing of governmental papers, such as visas, is an example of a routine governmental action.
True or False?
What is True? Page 118
The creation of the Public Company Accounting Oversight Board (PCAOB) as an independent oversight body was an attempt to reestablish the perceived independence of auditing companies that faced serious questioning after several corporate scandals.
True or False?
What is True? Page 124
The term "_____" is best defined as the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.
What is Corporate Conscience? Page 70
The most famous advocate of the instrumental approach model to corporate social responsibility is the Nobel Prize-winning economist _____.
Who is Milton Friedman? Page 71
One of the responsibilities of the audit committee of a company is to:
What is to monitor the company's accounting policies and procedures. Page 95
Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called _____.
What are Facilitation payments? Page 118
The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for Organizations to match all the assets of an organization and effectively puts the organization out of business.
What is the death penalty?
Page 121
Which approach to corporate social responsibility (CSR) assumes that there are no external consequences to the actions of the corporation and its managers?
What is Instrumental Approach? Page 71
The stakeholders of a company include its customers, its vendor partners, state and local entities, and the community in which it conducts its business operations.
What is True? Page 94
One of the primary responsibilities of an organization's _____ is to ensure compliance with the company's internal code of ethics.
What is Corporate Governance Committee? Page 96
Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as _____.
What are Bribes? Page 118
Title VIII of the Sarbanes-Oxley Act addresses issues related to _____.
What is Corporate and Criminal fraud accountability?
Page 125
The approach that considers a company's social, financial, and environmental impact rather than focusing solely on its financial impact is the _____ approach.
What is Triple Bottom-Line? Page 77
Corporate governance is the process by which _____.
Which is how corporations are directed and controlled. Page 94
The board of directors of a company oversees?
What is the governance of the organization. Page 94
The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:
What is the full amount of the organization's assets?
Page 121
Title IX of the Sarbanes-Oxley Act focuses on?
What are White-collar crime penalty enhancements?
Page 125