Business Ethics and Governance

 

Business Ethics and Governance

21. In terms of the ASX Principles, which of the following regarding the composition of the nomination committee of a listed company is most correct?

1. A minimum of three members chaired by an executive director.
2. A majority of independent directors chaired by an independent director.
3. A majority of three members of whom most are independent directors.
4. A minimum of one independent director who also chairs the committee.

Correct answer: (B)
A majority of independent directors chaired by an independent director.

22. In terms of the National Greenhouse and Energy Reporting Act, which of the following entities would be required to register with the Clean Energy Regulator?

1. A facility that emitted 23.5kt of greenhouse gases.
2. A corporate that consumed 199TJ of energy.
3. A facility that produced 150TJ of energy.
4. A corporate that emitted 26Kt of greenhouse gases.

Correct answer: (C)
A facility that produced 150TJ of energy.

23. Managerial ethics can be characterised by all of the following levels except

1. immoral management
2. amoral management
3. demoral management
4. moral management

Correct answer: (C)
demoral management

24. Most companies begin the process of establishing organizational ethics programs by developing:

1. ethics training programs.
2. codes of conduct.
3. ethics enforcement mechanisms.
4. hidden agendas.

Correct answer: (B)
codes of conduct.

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

1. Increase the cost of compliance with federal regulations.
2. Force foreign companies to delist from U.S. capital market exchanges.
3. Improve the quality and transparency of financial reporting.
4. Increase the compliance burden for small companies.

Correct answer: (C)
Improve the quality and transparency of financial reporting.

26. Stakeholders are considered more important to an organization when:

1. they can make use of their power on the organization
2. they do not emphasize the urgency of their issues
3. their issues are not legitimate
4. they can express themselves articulately

Correct answer: (A)
they can make use of their power on the organization

27. Stakeholders are considered more important to an organization when:

1. they can make use of their power on the organization
2. they do not emphasize the urgency of their issues
3. their issues are not legitimate
4. they can express themselves articulately

Correct answer: (A)
they can make use of their power on the organization

28. Successful global initiatives addressing standards for business must begin and end with:

1. the role of corporate governance and shareholder power in corporate decision making.
2. social activism
3. the implementation of standardized ethics programs.
4. the consolidation of economic and environmental efforts.

Correct answer: (A)
the role of corporate governance and shareholder power in corporate decision making.

29. The _____________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources.

1. Ethical
2. Philanthropic
3. Volunteerism
4. Strategic

Correct answer: (B)
Philanthropic

30. The ability to interpret and adapt successfully to different national, organizational, and professional cultures is called:

1. national competitiveness.
2. global development.
3. cultural intelligence.
4. stakeholder sensitivity

Correct answer: (C)
cultural intelligence.

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