CH 6 - Organizational Ethics

A company that has ranked amongst the most ethical firms from 2007 to 2017, according to Forbes magazine, is:

AFLAC

Most ethics or compliance officers are entrusted to:

Act as a liaison between the company and their temporary employees.

A member of the Chartered Financial Analyst Institute (CFA) must:

All of these answers are correct. Promote the integrity of and uphold the rules governing global capital markets. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. Maintain and improve their professional competence.

The core components upon which a company's ethical performance depends include:

All of these answers are correct. The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture.

The most effective ethics programs utilize which of the following:

All of these answers are correct. Written policy. Posters. Quick reference guides.

By law, the financial records of publicly held companies are required to be:

Audited by a certified professional accounting firm.

Integrity-based ethics programs:

Combine concern for the law with an emphasis on employee responsibility.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

Compliance and Integrity.

Which of these statements is true about the U.K. Bribery Act?

Contains a strict liability offense for failure to prevent bribery by commercial organizations.

Which of the following is not an example of an ethical criterion?

Corporate driven.

Ethical challenges for information technology employees include:

Data privacy and copyright protection.

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

Due Process.

In the case Equifax's Data Breach, which ethical climate dominated during the data breach?

Egoism

Which ethical criterion is described by the idea that a company should strive for efficiency?

Egoism.

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices.

The unspoken understanding among employees of what is and is not acceptable behavior is called:

Ethical climate.

Which type of employee is most likely to report ethical issues in the workplace?

Executives.

In most companies, a moral atmosphere cannot be detected.

False

In the United States, most ethics policies are based primarily on the company's mission and vision.

False

It is impossible for multiple ethical climates to exist within one organization.

False

The American Institute of Certified Public Accountants Code directs accountants to be steadfast in honorable behavior, but not to the point of personal sacrifice.

False

The majority of large U.S. corporations do not have codes of ethics.

False

Today, more companies than ever are turning to formal ethics audits to measure the quality of their ethics programs.

False

If a manager approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of the ethical problem.

All of the following are considered to be ethical issues for marketing professionals except:

Ignoring market fair dealing.

Building ethical safeguards into a company's everyday routines is called:

Institutionalizing ethics.

Which country passed major anti-corruption reforms in 2016?

Mexico.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

Operating under the compliance-based approach.

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle:

Protect confidentiality.

Which company ethics safeguard is commonly implemented as an employee "helpline"?

Reporting mechanisms.

A giant step is taken toward improving ethical performance throughout the company when:

Senior-level managers signal to employees that they believe ethics is a high priority.

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

The U.S. Foreign Corrupt Practices Act.

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

The financial bottom line.

The critical component in installing an effective ethics program is:

The integration of various ethics safeguards into a comprehensive program.

According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subjected to bribery.

True

Bribery is found in nearly every sector of the global marketplace, but can be worse in some parts of the world.

True

Ethics training is typically the most costly element of an ethics program.

True

Honesty, integrity, and accuracy are absolute requirements of the accounting function.

True

In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority.

True

Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically.

True

Marketing ethics include having concern for consumer health and safety issues.

True

Personal values and moral character play key roles in improving a company's ethical performance.

True

The Principles and Standards of Ethical Supply Chain Management Conduct focuses on integrity, value, and loyalty.

True