MIDTERM - Business Ethics,CSR and sustainability Flashcards
As internal auditor, you are asked to review the organization’s code of ethics and the environment for ethical decision making. Which procedure is inappropriate for the engagement?
A. A review of the code of ethics and a comparison with other such codes.
B. A survey of employees, asking genaral questions regarding the ethical quality of the organization’s decision making .
C. Administration of an anonymous “Ethics Test” to determine if employees know of unethical behavior or have acted unethically themselves.
D. A survey of the board of directors to determine their level of support for the organization’s code of ethics.
D. A survey of the board of directors to determine their level of support for the organization’s code of ethics.
Which of the following is true concerning business codes of conduct and compliance standards?
A. Compliance standards should be straightforwand and reasonably capable of reducing the prospect of criminal conduct.
B. The compliance standards should be codified in the charters of the audit committee
C. Companies with international operations should institute various compliance programs, based on selective geographic locations, that reflect appropriate local regulations.
D. To prevent future legal liability, the code should consist of legal terms and definitions.
A. Compliance standards should be straightforwand and reasonably capable of reducing the prospect of criminal conduct.
Which of the following is detrimental to a good compliance environment?
A. An international company that institutes a global compliance program that reflects local conditions, laws, and regulations.
B. A company that creates an organizational chart, identifying personnel who are responsible for implementing compliance programs.
C. A company whose code of conduct provides guidance to employees on relevant issues.
D. A company that rewards employees for charging travel hours in order to take advantage of the tax benefits.
D. A company that rewards employees for charging travel hours in order to take advantage of the tax benefits.
As an internal auditor, which tool will you use to uncover unethical or illegal activity in an organization?
A. Screening of applicants
B. The ethics interview
C. The background check
D. The ethics questionnaire
D. The ethics questionnaire
Which of the following forms of punishment for those who violate an organization’s code of conduct?
I. A warning
II. Loss of pay
III. Suspension
IV. Termination
A. I and II
B. I, III and IV
C. I, II and III
D. I, II, III and IV
D. I, II, III and IV
Which of the following is not a limitation to the degree of employee punishment an employer may impose?
A. Whistle-blower laws
B. Employer responsibilities with regard to employer good faith doctrines
C. Union contracts
D. Exceptions to the employee-at-will doctrine
B. Employer responsibilities with regard to employer good faith doctrines
An organization with an effective regulatory compliance program displays which of the following characteristics?
A. It punishes unethical or illegal activity based on seniority.
B. It disciplines those who knew of the misconduct and did not report it, and holds harmless those who should have known, but did not know.
C. After an offense is detected, the organization takes the necessary steps - short of modifying its entire program - to prevent further similar offenses.
D. It is scrupulous in documenting employee dicipline.
D. It is scrupulous in documenting employee dicipline.
Which of the following is true regarding appropriate responses to an offense detected by the organization’s compliance program?
I. Disciplinary action taken against those engaged in misconduct is an appropriate response.
II. Self reporting the violation to the government is an appropriate response.
III. Acceptance of resposibility for the violation is an appropriate response.
IV. An appropriate response can lower the amount of an organization’s court fines.
A. I and II
B. I and III
C. I, II and III
D. I, II, III, and IV
D. I, II, III, and IV
A code of conduct was developed several years ago and distributed by a large financial institution to all its officers and employees. What is the internal auditor’s best approach to providing the board with the highest amount of comfort about the code of conduct?
A. Fully evaluate the comprehensiveness of the code and compliance with it and report the results to the board.
B. Fully evaluate organizational practices for compliance with the code, and report to the board.
C. Review employee activities for compliance with provisions of the code, and report to the board.
D. Perform test on various employee transactions to detect potential violations of the code of conduct.
A. Fully evaluate the comprehensiveness of the code and compliance with it and report the results to the board.
The SEC Code of Corporate Governance recommends that companies adopt a Code of Business Conduct and Ethics.
What is the best reason for establishing a code of conduct within an organization? The Code ___________________________________________.
A. is typically required by governments.
B. Expresses standards of individual behavior for members of the organization.
C. Provides a quantifiable basis for personnel evaluations.
D. Have tremendous public relations potential.
D. Have tremendous public relations potential.
Which of the following statements is appropriate to include in a manufacturer’s conflict of interest policy? An employee shall?
A. Accept money, gifts, or services from a customer.
B. Participate (directly or indirectly) in the management of a public agency.
C. Borrow loan or lend money to vendors
D. Use organizational information for private purposes.
B. Participate (directly or indirectly) in the management of a public agency.
What are the four levels of social responsibility?
A. Economic, legal, environmental and ethical
B. Financial, legal, environmental and philanthropic
C. Economic, financial, legal and ethical
D. Economic, legal, ethical and philanthropic
D. Economic, legal, ethical and philanthropic
Which of the following is a major ethical concern among corporate boards of directors?
A. Compensation
B. The non-traditional directorship approaches
C. Secondary stakeholders
D. Debt swaps
A. Compensation
Which of the failures in information protection is most likely to directl y lead to an organization losing its ability to continue as a going concern?
A. A gym membership list is discovered by a rival gym.
B. A soft drink company discovers the secret recipe for a rival company’s product.
C. An airplane manufacturer discovers the suppliers for its primary competitor.
D. A compute repair store discovers that many of its customers have used competitors in the past.
B. A soft drink company discovers the secret recipe for a rival company’s product.
What is the primary reason for establishing a code of conduct for professionals?
A. Promote an ethical culture among professionals who serve others.
B. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
C. Reduce the likehood that members of the profession will be sued for substandard work.
D. Ensure that all members of the profession perform at approximately the same level of competence.
A. Promote an ethical culture among professionals who serve others.
