QUESTION Phyllis is the CEO of Marchland Communications. According to the corporate social responsibility pyramid, what should be the first priority for Phyllis to be working towards? A) demonstrating ethical behavior B) making a profit C) encouraging good corporate citizenship D) hiring responsible employees E) complying with the law ANSWER Answer: B Explanation: B) […]
QUESTION The nonprofit sector represents 7 percent of the U.S. gross domestic product. This is evidence that businesses in the nonprofit sector do what? A) make a profit B) contribute economic value to society C) practice corporate social responsibility D) have an unbalanced blended value E) require less philanthropic support ANSWER Answer: B Explanation: […]
QUESTION When Mario was hired at a software company, he had to sign a nondisclosure agreement. Nondisclosure agreements are an example of what? A) ethical performance contracts B) incentive-based ethics codes C) compliance-based ethics codes D) integrity-based ethics codes E) whistleblower agreements ANSWER Answer: C Explanation: C) Compliance-based ethics codes attempt to prevent criminal […]
QUESTION During orientation for his new job, Eduardo read and signed a document listing the company’s principles supporting fair play, honesty, diversity, and shared accountability. What kind of ethics code does Eduardo’s company have? A) legally grounded B) compliance-based C) integrity-based D) values-based E) peer-enforced ANSWER Answer: C Explanation: C) Integrity-based ethics codes strive […]
QUESTION Jonathan is a new employee at McFarlin pharmaceuticals and has been informed that the company has a nonretaliation policy against whistleblowers. Which of the following would likely NOT warrant attention from Jonathan under this policy? A) corruption B) noncompetitive wages C) fraud D) safety problems E) improper waste disposal ANSWER Answer: B Explanation: […]
QUESTION Which strategy for encouraging ethical behavior in an organization follows a more punitive approach? A) top managers supporting an ethical climate B) running background checks on job candidates C) establishing integrity-based ethics codes D) establishing compliance-based ethics codes E) conducting ethics training for employees ANSWER Answer: D Explanation: D) Compliance-based codes attempt to […]
QUESTION Which of the following is an example of the general public’s outrage playing a role in curbing white-collar crime? A) conviction of former Enron chief Jeffrey Skilling B) passage of the Sarbanes-Oxley Act of 2002 C) formation of the Bureau of Consumer Financial Protection D) proliferation of compliance- and integrity-based ethics codes E) increased […]
QUESTION Tayshaun has noticed accounting irregularities in his company’s quarterly reports. Significant expenses are missing, making the company look highly profitable despite a dismal economy. After doing more research, he reports this to the state attorney general’s office. What is the term applicable to Tayshaun? A) compliance officer B) ethics officer C) enforcer D) informant […]
QUESTION Which of the following is NOT a principal provision of the Sarbanes-Oxley Act of 2002? A) Alteration or destruction of key audit documents is prohibited. B) Company CEOs and CFOs must personally certify financial reports. C) Whistleblowers punished by their employers receive back pay and job reinstatement. D) Companies must draft and all employees […]
QUESTION Under the Sarbanes-Oxley Act, who is required to personally certify the financial reports of an organization? A) chief executive officer B) chief financial officer C) chief executive officer and chief financial officer D) chief financial officer and board chairman E) chief executive officer and board chairman ANSWER Answer: C Explanation: C) This provision […]
