Question 1

Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.

Accepted Answer

A)  Sherman Antitrust Act
B)  Ethical Compliance Act
C)  Robinson-Patman Act
D)  Sarbanes-Oxley Act
E)  Dodd-Frank Act

Question 2

A(n)  _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders.

Accepted Answer

A)  ethics audit
B)  social audit
C)  financial audit
D)  performance audit
E)  external audit

Question 3

Having the results of an ethics audit verified by an independent party is the second step in the ethics-auditing process.​

Accepted Answer

A) True 
 B)False

Question 4

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms of

Accepted Answer

A)  ethical and legal conduct.
B)  environmental performance.
C)  financial performance.
D)  customer satisfaction.
E)  ethical misconduct.

Question 5

What are the three triple bottom line factors incorporated into the Global Reporting Initiative framework?

Accepted Answer

A)  Economic, social, personal indicators
B)  Political, social, and environmental indicators
C)  Economic, social, and environmental indicators
D)  Political, individual, and environmental indicators
E)  Political, individual, and personal indicators

Question 6

Independent verification of the ethics audit is important because it lends the report

Accepted Answer

A)  credibility and formality.
B)  credibility and civility.
C)  credibility and objectivity.
D)  objectivity and civility.
E)  objectivity and formality.

Question 7

Explain the benefits and risks of ethics auditing.

Accepted Answer

Benefits include the ability to detect m...

Question 8

Which of the following statements about ethics audits is false?

Accepted Answer

A)  They provide an opportunity to measure conformity to the firm's desired ethical standards.
B)  The terms ethics audits and social audits can be used interchangeably.
C)  They provide an objective method for demonstrating a company's commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility.
D)  They can be a component of social audits.
E)  They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective.

Question 9

Shared values among employees are the glue of successful management. ​

Accepted Answer

A) True 
 B)False

Question 10

_________ include management's commitment to the ethics program and the methods or system for ethics evaluation.

Accepted Answer

A)  Shared values
B)  Formal controls
C)  Financial controls
D)  Process controls
E)  Output controls

Question 11

The process of verifying the results of an audit should involve standard procedures that control the _____ of the information.

Accepted Answer

A)  completeness
B)  effectiveness and efficiency
C)  reliability and validity
D)  independence
E)  veracity

Question 12

Which of the following is not a phase of escalation during an ethical disaster?

Accepted Answer

A)  The firm's discovery of the misconduct
B)  Ethical issue recognition
C)  The firm's response to the misconduct
D)  The decision to act unethically
E)  The firm's decision to conduct an ethics audit

Question 13

Two useful indicators for assessing employee issues are

Accepted Answer

A)  staff turnover and stock price.
B)  staff turnover and employee satisfaction.
C)  staff turnover and honesty.
D)  employee satisfaction and attendance.
E)  employee satisfaction and productivity.

Question 14

Which of the following hasa significant impact on the success of an ethics program?

Accepted Answer

A)  The types of ethical decisions
B)  The quality of communication
C)  The size of the company
D)  Legal constraints
E)  A statement of values

Question 15

Any attempt to verify outcomes and to compare them with standards can be considered a(n)  _____ activity, although many smaller firms do not use this word.

Accepted Answer

A)  ethical
B)  auditing
C)  formal
D)  informal
E)  accounting

Question 16

_____ are a primary stakeholder group and should be included in the ethics-auditing process because their loyalty determines an organization's success.

Accepted Answer

A)  Customers
B)  Suppliers
C)  Special interest groups
D)  Competitors
E)  Legislators

Question 17

When The Gap posts the results of its ethics audit on its website, it is engaged in which of the following steps of the ethics auditing process?

Accepted Answer

A)  Submit the results to the U.S. Sentencing Commission.
B)  Define the scope of the audit.
C)  Collect and analyze relevant information.
D)  Verify the results.
E)  Report the results.

Question 18

How can companies secure stakeholder input during an ethics audit? Why is it important to do so?

Accepted Answer

Stakeholder input yields significant ins...

Question 19

Compare and contrast ethics auditing and financial auditing. How can the tools of financial auditing be applied to ethics audits?

Accepted Answer

Ethics auditing employs procedures and...

Question 20

Six Sigma is a methodology designed to manage process variations that cause defects and to systematically work toward managing variation to eliminate those defects. ​

Accepted Answer

A) True 
 B)False

Exam 9: Managing and Controlling Ethics Programs

A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders.

Correct AnswerverifiedShow Answer

Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word.

Correct AnswerverifiedShow Answer

Which of the following is not a phase of escalation during an ethical disaster?

Correct AnswerverifiedShow Answer

Independent verification of the ethics audit is important because it lends the report

Correct AnswerverifiedShow Answer

What are the three triple bottom line factors incorporated into the Global Reporting Initiative framework?

Correct AnswerverifiedShow Answer

Two useful indicators for assessing employee issues are

Correct AnswerverifiedShow Answer

Which of the following hasa significant impact on the success of an ethics program?

Correct AnswerverifiedShow Answer

The process of verifying the results of an audit should involve standard procedures that control the _____ of the information.

Correct AnswerverifiedShow Answer

Six Sigma is a methodology designed to manage process variations that cause defects and to systematically work toward managing variation to eliminate those defects. ​

Correct AnswerverifiedShow Answer

How can companies secure stakeholder input during an ethics audit? Why is it important to do so?

Correct AnswerverifiedStakeholder input yields significant ins...View AnswerShow Answer

When The Gap posts the results of its ethics audit on its website, it is engaged in which of the following steps of the ethics auditing process?

Correct AnswerverifiedShow Answer

Explain the benefits and risks of ethics auditing.

Correct AnswerverifiedBenefits include the ability to detect m...View AnswerShow Answer

Having the results of an ethics audit verified by an independent party is the second step in the ethics-auditing process.​

Correct AnswerverifiedShow Answer

_____ are a primary stakeholder group and should be included in the ethics-auditing process because their loyalty determines an organization's success.

Correct AnswerverifiedShow Answer

Shared values among employees are the glue of successful management. ​

Correct AnswerverifiedShow Answer

_________ include management's commitment to the ethics program and the methods or system for ethics evaluation.

Correct AnswerverifiedShow Answer

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms of

Correct AnswerverifiedShow Answer

Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.

Correct AnswerverifiedShow Answer

Which of the following statements about ethics audits is false?

Correct AnswerverifiedShow Answer

Compare and contrast ethics auditing and financial auditing. How can the tools of financial auditing be applied to ethics audits?

Correct Answerverified​Ethics auditing employs procedures and...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Six Sigma is a methodology designed to manage process variations that cause defects and to systematically work toward managing variation to eliminate those defects.

Correct Answer
verified

Correct Answer
verified
Stakeholder input yields significant ins...
View Answer

Correct Answer
verified

Correct Answer
verified
Benefits include the ability to detect m...
View Answer

Having the results of an ethics audit verified by an independent party is the second step in the ethics-auditing process.

Correct Answer
verified

Correct Answer
verified

Shared values among employees are the glue of successful management.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Ethics auditing employs procedures and...
View Answer