Chapter 11

Question 1

83. A materiality assessment involves standing back from a firm and seeing it as how others might see it. With which of the following is a materiality assessment most
    closely associated?
    A. Ethics codes
    B. Fair treatment of customers
    C. Corporate social responsibility
    D. Fit and proper requirements

Answer 1

C - Corporate social responsibility is about firms engaging with their ’Stakeholders’ on
important issues. A materiality assessment is about looking at the important issues within a firm, identifying its stakeholders and considering how these issues will affect its
stakeholders. This involves standing back from a firm to see how others might see it.

Question 2

84. The values and behaviour of the board and senior management is sometimes referred to as:
    A. top down direction
    B. tone from the top
    C. top code of conduct
    D. top down communication

Answer 2

B - The board and senior management demonstrating and modelling the firm’s ethical values and behaviours is referred to as ‘tone from the top’.

Question 3

85. Which of the following consequences of trying to embed ethics into an organisation should be encouraged?
    A. Superficial ethical behaviour being viewed as a marketing ploy
    B. Inconsistent ethical behaviour resulting in cynicism
    C. Senior management ‘walking the talk’ to reinforce the ethics of the business
    D. Not addressing behaviours that could underpin an organisation

Answer 3

C - Leadership is an important part of the ethical framework of a company, and senior
management ‘walking the talk’ demonstrates and reinforces the ethics of the business. It sets the ‘tone from the top’.

Question 4

86. According to the regulator, good management information (MI) should display what a manager can directly influence or something that they can escalate to someone who can take the necessary action. Which of the regulator’s principles of good
    management information (MI) does this statement relate to?
    A. Accuracy
    B. Timeliness
    C. Relevance
    D. Consistency

Answer 4

C - The regulator has four principles for good MI. ‘Relevance’ is the principle that applies to providing MI that a manager can influence or escalate to someone who can take
necessary action. The other three principles are those in answers a), b) and d), but these are not relevant to the question.

Question 5

87. The first of twelve steps to take in designing and implementing a Corporate Social Responsibility (CSR) programme is to?
    A. Understand the level of resources you have available
    B. Identify all your stakeholders
    C. Have someone check your CSR programme is working as well as you would expect
    D. Implement improvements and monitor progress

Answer 5

B - The first step for a firm designing and implementing a corporate social responsibility programme is to identify its stakeholders. Answer a) is step 7, answer c) is step 11 and answer d) is step 9.