35 terms

Business Ethics

Final Exam Notes 2
The introduction of the _______ placed more effective controls over bribing practices and less obvious forms of payment to foreign officials and politicians by American publicly traded companies pursuing international growth.
Foreign Corrupt Act
The Federal Sentencing Guidelines for Organizations requires organizations to _____.
Police themselves to prevent and detect the criminal activity of their employees.
The ______ is a legislative response to the corporate accounting scandals and contains almost over 50 subsections covering aspect of the financial management of businesses.
Sarbanes-Oxley Act
The _____ promoted as the "fix" for the extreme mismanagement of risk in the financial sector that lead to a global financial crisis.
Dodd-Frank Wall street reform and consumer protection act
Adopted in 2004 and required evidence of organizations actively promoting ethical conduct rather than just complying with legal obligations. Concept of an ethical culture was recognized as a foundational component of an effective compliance program.
Revised Federal Sentencing Guidelines for organizations.
______ are the actions of an organization that target achieving a social benefit over and above maximizing profits for its shareholders and meeting all legal obligations.
Corporate social responsibility
The _____ approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders.
Instrumental approach
______ said that it would be unethical for a corporation to do anything other than deliever profits for its investors.
Milton Friedman
All of the following are major trends behind the CSR phenomenon except:
The failure of the private sector
Many corporations are now reporting _______ in their annual reports that includes updates on their social and environmental activities in addition to their bottom line financial performance.
a triple bottom line
_______ CSR encompasses philanthropic activities targeted toward programs that generate the most positive publicity or goodwill for the organization.
_____ CSR is the most legitimate type of CSR.
Philanthropic approach to CSR in which organization underwrite specific initiatives to give back to the company's local community or to designated national or international programs.
Altruistic CSR
Ford spend millions on an ad compaign to raise awareness of the need for booster seats for children over 40 pounds and under 4 feet 9 inches. This is an example of:
Southwest Airlines supports the Ronald McDonald Houses with donations of both dollars and employee-donated volunteer hours. This is an example of ______ CSR.
Companies like the Body shop, Ben & Jerry's Homemade Ice Cream, and Tom's of Maine that incorporate their beliefs into their core operating philosophies are following ______ CSR.
Ethical CSR
The _______ approach is a perspective that a corporation has an obligation to society over and above the expectations of its shareholders.
Social contract
A _______ is the process that directs and controls organizations.
Corporate governance
Who oversees he governance of an organization?
The board of directors
Who is responsible for overseeing the financial reporting process of an organization?
The audit committee
The _______ is an operating committee staffed by members of the board of directors plus independent or outside directors, and they are responsible for setting the compensation for the CEO and other senior executives.
The corporate ______ is responsible for monitoring the ethical business practices of an organization.
Governance committee
The set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties refers to _______.
"Comply or else"
Which of the following describes the first step in a policy of disregarding the corporate governance model?
Merge the roles of chief executive officer and chairman of the board into one individual
The set of guidelines that requires companies to abide by a set of operating standards and to explain why they choose not to refers to ______.
"comply or explain"
A(n) _______ is an employee who discovers corporate misconduct and chooses to bring it to the attention of others.
A(n) ______ whistle blower is an employee who discovers corporate misconduct and brings it to the attention of his supervisor, who then follows established procedures to address the misconduct within the organization.
A(n) _______ whistleblower is an employee discovering corporate misconduct and chooses to bring it to the attention of law enforcement agencies and/or the media.
When an employee discovers evidence of malpractice or misconduct in an organization, he or she faces ________.
An ethical dilemma
One could argue that whistleblowers provide _____.
an invaluable service to their organization
Whistle-blowing is ethical under all of the following conditions, EXCEPT:
when the motivation is financial gain
________ is a telephone line where employees can leave messages to alert a company of suspected misconduct without revealing their identity.
A whistleblower hotline
All of the following can cause a whistleblower to lose legitimacy, EXCEPT:
the employee is trying to protect the public
All of the following women were recognized by Times magazine as a "Person of the Year," EXCEPT:
Martha Jenkins
A Quit Tam Lawsuit is a lawsuit brought on behalf of ________ by a whistle-blower.
the federal government