Ethics Quiz 4/4

  1. Directors operate under state laws that impose fidciary duties on them to act in ____ ____, with ____ ____ and in the ____ ____ of the corporation and its shareholders.
    • good faith
    • reasonable care
    • best interes
  2. Courts generally discuss three types of fiduciary obligations
    • obedience
    • loyalty
    • due care
  3. requires a director to avoid commiting...acts beyond the scope of the powers of a corporation as defined by its charter or the laws of the state of incorporation
  4. dicates that a director must act in good faith and must ont allow his personal interest to prevail over the interests of the corporation
  5. requires a director to be diligent and prudent in managing the corporations afairs.
  6. The coporation is accountable legally to _____, and strategically to additional ______
    shareholders, stakehoders
  7. the board of directors must take all stakeholder interests into account and make sure that they are built into the company's vision, mission, strategy, policies, codes, practices, compliance mechanisms, and feedback arrangements.
    stakeholder-accountability oriented governance process (SAOG)
  8. Approprate _____ reinforced by ____ _____ must be given to management, and reinfoced by an ethical corporate culture.
    guidance -- feedback mechanisms
  9. a company's ________ _______ role is to assess whether its policies are comprehensive and are being observed.
    internal auditor's
  10. watches over the ethical culture and serves as the person to whom whistleblowers report anonymously.
    Ethics Officer - Ombudsperson
  11. Beliefs motivate people to
  12. The actions of individual personnel are undestood collectively to be the
    corporations behavior
  13. The identification, assessment, and ranking of stakeholder interests should develop a comprehensive _____ __ _____ for an organization
    set of values
  14. Hypernorms include
    • honesty
    • fairness
    • compassion
    • integrity
    • predictability
    • responsibility
  15. Culture where this value system comes from
    Rights based; rights, justice, utility
    North American
  16. Culture where this value system comes from
    Duty Based: obligation to family
  17. Culture where this value system comes from
    Duty Based: Obligation to company
  18. Culture where this value system comes from
    Duty Based- obligation to savior
    middle east
  19. Culture where this value system comes from
    Personal rights
  20. Culture where this value system comes from
    Duty Basedly, religious values: obligation to fami
    South America
  21. A corporation that has a code of conduct without supporting it in an ethical culture is simply engaging in
    window dressing
  22. Threats to Good Governance & Accountability
    • Misunderstanding Objectives & Fiduciary Duty
    • Failure to Identify & Manage Ethics Risks
    • Conflicts of Interest
  23. Frequently employees are tempted to cut etchical corners and they have done so because they believed
    • their top management wanted them to
    • they were ordered to do so
    • they were encouraged to do so by misguided or manipulatable inventive programs
  24. Recognition of the increasing complexity colatility and risk inherent in modern corporate interes and operations has led to requirements for
    • risk identifaction
    • assesment
    • managment systems
  25. Normal definitions of risk are too narrow for stakeholder-oriented accountability and governance
    an ethics risk exists where the expectations of stakeholder may not be met
    discovery and remediation are essential in order to avoid a crisis or the loss of support of stakeholders
    assign responsibility, develop annual precesses, board review
    Ethics risk management principles
  26. occurs when the independent judgement of a person is swayed or might be swayed from making decision in the best interest of thers who are relying on that judgment.
    Conflict of interest
  27. is expected to make judgements in the best interest of the company
    executive or employee
  28. is legally expected to make judgements in the best interest of the company and its sharehodlers, and do do so strategically so that no harm and perhaps some benefit will come to other stakeholders and public interest
  29. expected to make judgments that are in the public interest
    public accountant
  30. A decision maker has a conflict of interest if and olnly if
    • 1. D is in a relationship with another P requiring D to exercise judgement on P's behalf and
    • 2. D has a special interest tending to interfere ith the proper exercise of judgement in that relationship
  31. any interest, influence, loyalty, concern, emotion, or other feature tending to make judgement less relable than normal
    judgement might be swayed if
  32. Causes of conflicting self interest
    Bribes, kickbacks, family, designess, gifts, free travel, favors, special advantages, special treatment, dealings with family relatives or relations
    self interest
  33. Causes of conflicting self interest
    misappropriation of funds of property, cheating on expense accounts, falisifying documents, stealing cash, assets, or resources, falsifying resluts to obtain bonuses, merit pay or promotion
  34. Causes of conflicting self interest confused signals or incentives, boss/everybody's doing it, cultural differences
  35. Causes of conflicting self interest
    whee a small favor leads to ever larger demands
    slippery slope
  36. D is not yet in a situation in which D must make that dugement
    a potential conflict of interest
  37. D is in a situation in which d must make that judgement
    actual conflict of interest
  38. no conflict of interest exists, although as a result of lack of informaiton someone other than D owuld be justified in concluding that D does have one
    apparent conflict of interest
  39. To remedy the concerns over a conflict of interest
    • avoidance
    • disclosue to those stakeholders relying on the decision
    • managment of the conflict of interest so that the benefits of the judgment made outweigh the costs
  40. Guidelines for acceptance of gifts or prefential treatemtn (7)
    • Is it nominal or substantial
    • what is the intended purpose
    • what are the circumstances
    • what is the position of sensitivity of the recipient
    • what is the accepted practice
    • what is the firm/company policy
    • is it legal
  41. describes those measures and methods that would prevent the transimission of client information from on part of an organization or consortium to another
    chinese wall or firewall
  42. forensic experts indicate that the general population can be divided into three groups
    • 20% would never commit a fraud
    • 60% would commit a fraud if the chance of getting caught was low
    • 20% would seek to commit a fraud regardless of the circumstances
  43. stands for circumstances that account for motication of illicit behavior-
    • G- Greed
    • O- Opportunity to take advantage
    • N- Need for whatever is taken
    • E- Expectation of being caught is low
Card Set
Ethics Quiz 4/4
Ethics Quiz 4/4