Ethics Ch 4

The Act/Agency that makes regular surprise inspections to ensure businesses maintain safe working environments is called the _____.

• a. Equal Safety Act

• b. Immigration Reform and Control Office

• c. Civil Rights for Employees Act

• d. The Occupational Safety and Health Administration

The Sarbanes–Oxley Act was passed to provide oversight of _____.

• corporate accounting practises

• corporate environmental practises

• nonprofit organizations' governance practices

• federal sentencing guidelines' compliance requirements

_____ impose(s) fines or imprisonment as punishment for breaking the law.

• a. The honor system

• b. Voluntary compliance

• c. International guidelines

• d. Criminal law

The Sarbanes–Oxley Act (SOX) _____.

• a. did not modify the attorney–client relationship in that it does not require lawyers to report wrongdoing to top managers and/or the board of directors

• b. is the same as the Public Company Accounting Oversight Board

• c. attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

• d. does not impose additional requirements on executives

The Dodd–Frank Wall Street Reform Act _____.

• a. contains five provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives

• b. contains 10 provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives

• c. seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008–2009 financial crisis

• d. created only one financial agency (The Financial Stability Oversight Council).

Congress passed the FSGO in 1991 to create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. These guidelines, developed by the U.S. Sentencing Commission, apply to all felonies and class A misdemeanors committed by employees in association with their work.

• True

• False

Which dimension of social responsibility refers to business's contributions to society?

• legal

• ethical

• economic

• voluntary responsibilities

________________ ties an organization's products directly to a social concern through a marketing program.

• strategic marketing

• strategic philanthropy

• social marketing

• cause-related marketing

Which of the following is true of the Sherman Antitrust Act?

• a. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired.

• b. It has refined copyright laws to protect digital versions of copy-righted materials, including music and movies.

• c. It prohibits organizations from holding monopolies in their industries.

• d. It inhibits fair competition.

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on?

• a. improving the quality of life for employees and communities

• b. penalties for companies convicted of restraint of trade charges

• c. background checks on employees and other agents

• d. encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs