Corporate governance and Business Ethics

The primary stakeholders are:

• Customers.

• Suppliers.

• Shareholders.

• Creditors.

The chairperson of the board of directors and CEO should be leaders with:

• Vision and problem solving skills.

• The ability to motivate.

• Business acumen.

• All of the above.

The social economy partnership philosophy emphasizes:

• cooperation and assistance.

• profit maximization.

• competition.

• restricting resources and support.

King Report first published in 1994

• True

• False

Who was the chairman of King committee

• Richard Greenburry

• Mervyn E King

• Hampel

• J J Irani

To be successful, business ethics training programs need to:

• promote the use of emotions in making tough ethical decisions.

• educate employees on formal ethical frameworks and models of ethical decision making.

• focus on personal opinions of employees.

• be limited to upper executives.

One of the objectives of the Sarbanes-Oxley Act was to:

• Increase the compliance burden for small companies.

• Improve the quality and transparency of financial reporting.

• Increase the cost of compliance with federal regulations.

• Force foreign companies to delist from U.S. capital market exchanges.

Codes of conduct and codes of ethics

• rarely become an effective component of the ethics and compliance program.

• are designed for top executives and managers, not regular employees.

• become necessary only after a company has been in legal trouble.

• are formal statements that describe what an organization expects of its employees.

Consider the following recommendations:

- a minimum of three members;

- chaired by an independent director;

- a majority of independent directors;

- can comprise executive directors.

In terms of the ASX Principles, the above requirements relate to the composition of which committees?

• The nomination and risk committees.

• The audit and remuneration committees.

• The remuneration, audit, risk and nomination committees.

• The remuneration, risk and nomination committees but not the audit committee.

_____________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.

• Crisis

• ethical issue

• indictment

• fraud