Chapter 8-9

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How does a code of conduct differ from a code of ethics?

A code of ethics is more comprehensive than a code of conduct.

Which of the following is not a main goal of successful ethics programs?

Allow employees to solve ethical issues themselves using their best judgment.

_____________plans help companies respond to and recover from natural disasters or technological disruptions.

Crisis management

Every year, Alva receives an updated code of conduct booklet from his company's headquarters. Alva really doesn't understand the booklet and gets frustrated when he tries to read it. Alva is experiencing a problem linked to which mistake in implementing an ethics program?

Developing program materials that do not address the needs of the average employee

The measurement system that has become a prominent framework that companies have adopted to report their social and sustainability progress is defined as the

Global Reporting Initiative.

What is one of the responsibilities of an ethics officer?

Monitoring and auditing ethical conduct

Which of the following is not a step in the ethics auditing process?

Report the results to the U.S. Sentencing Commission.

Under the ______________________, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.

Sarbanes-Oxley Act

ABC Corp. offers ethics hotline maintenance for organizations. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?

Systems for monitoring, auditing, and reporting misconduct

What is especially useful for monitoring and enforcing ethical performance?

The existence of an internal system to report misconduct

Which of the following is not an advantage of having a comprehensive code of conduct?

To help employees fight for satisfactory levels of compensation and benefits.

According to the text, the effectiveness of an ethics program is determined by its ________ and _______.

design; implementation

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility as well as to specific social responsibility and ethical issues, ethics audits focus on more narrow issues related to assessing and reporting on a firm's performance in terms of:

ethical and legal conduct.

To measure the effectiveness of its recently established ethics program, Spacely Sprockets, Inc., is conducting a systematic evaluation of its ethics program and performance. This is called a(n):

ethics audit.

The process of assessing and reporting a business's performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders is called a(n):

social audit.


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