Corporate Governance
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Course Introduction
Corporate Governance explores the systems, principles, and processes by which companies are directed and controlled. The course examines the roles and responsibilities of key stakeholders including boards of directors, management, shareholders, and regulatory bodies in aligning corporate activities with ethical practices, legal standards, and strategic objectives. Students analyze the frameworks and codes governing corporate behavior, investigate real-world governance failures and successes, and consider global variations in governance practices. Emphasis is placed on transparency, accountability, risk management, and the balance between stakeholder interests in fostering sustainable organizational performance.
Recommended Textbook
Understanding Business Ethics 3rd Edition by
Peter A. Stanwick
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13 Chapters
687 Verified Questions
687 Flashcards
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Page 2
Chapter 1: The Foundation of Ethical Thought
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Sample Questions
Q1) All of the following are deontological frameworks except A) Ethical egoism
B) Existentialism
C) Contractarianism
D) Kant's Ethics
Answer: A
Q2) Which of the following is not one of Ross's seven guiding principles?
A) Gratitude
B) Justice
C) Self-Improvement
D) Greed
Answer: D
Q3) The average Panera Cares Café will generate revenues of ___________ and profits of __________ per month.
A) $10,000; $300 to $400
B) $50,000; $1,000 to $5,000
C) $100,000; $3,000 to $4,000
D) $500,000; $30,000 to $35,000
Answer: C
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Page 3
Chapter 2: The Evolving Complexities of Business Ethics
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Sample Questions
Q1) Ninety five percent of U2's revenue, which includes concert ticket sales and record sales, is earned outside Ireland.
A)True
B)False
Answer: True
Q2) The _____________ test is based on the scenario of whether the individual is comfortable if his or her actions were publicized in a newspaper or on television.
A) Universality
B) Trusted friend
C) Publicity
D) Golden Rule
Answer: C
Q3) ______________ occurs when the decision maker forms a bias toward individuals in the same group as the decision maker.
A) Implicit prejudice
B) Ingroup favoritism
C) Reciprocity
D) Conflicts of interest
Answer: B
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Page 4
Chapter 3: Stakeholders and Corporate Social Responsibility
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Sample Questions
Q1) In a short essay, define and discuss the difference between immoral, amoral, and moral management styles.
Answer: a. An immoral manager-one who not only does not care how his or her decisions impact the stakeholders, but the actions are actively counter intuitive to what is the right and ethical thing to do. Immoral managers focus only on their own goals and the goals of the company and consider legal requirements as constraints or barriers that are ignored when their corporate actions are implemented.
b. An amoral manager-a manager who would be considered ethically neutral. An amoral manager does not focus proactively on ethical issues nor does he or she try to purposely go against the social and legal norms that are expected of the firm by society. The danger with an amoral manager is that since ethical considerations are not contemplated in the decision-making process, the manager many unintentionally commit unethical acts and not realize the impact the decision had on various stakeholders.
c. Moral manager-those decision makers who understand the importance and relevance of considering ethical issues when they are making decisions. Moral managers not only meet the minimum legal standards, but are proactive in presenting ethical leadership to the firm's employees and other stakeholders.
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Page 5
Chapter 4: Ethics and Financial Reporting
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Sample Questions
Q1) ____________ can be defined as the deviation from the traditional methods used to interpret an accounting rule or standard.
A) Unvalidated accounting
B) Stealth accounting
C) Creative accounting
D) Fragmented accounting
Q2) _____________ consists of an inspection of the accounting records and other information deemed necessary to express an opinion on the fairness and adequacy of the financial statements.
A) An exploration
B) A compilation
C) A debate
D) An audit
Q3) A good example of a company that violated the use of off-balance sheet arrangements is ______________.
A) ExxonMobil
B) Enron
C) Microsoft
D) Google
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Page 6
Chapter 5: Ethical Leadership and Corporate Governance
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Sample Questions
Q1) All of the following are major issues that most boards of directors have in common except
A) the annual business plan of the firm
B) Developing departmental production plans
C) The issuance of stock options
D) The issuance of dividends
Q2) The relationship between stakeholders and corporate governance is critical. Which of the following is not one of the criteria for success?
A) Reviewing global compliance standards
B) Examine how its actions affect the corporate image
C) How the ethical vision of top management changes over time
D) Consistently improving financial performance.
Q3) Strebel suggests that there are 4 major roles for the board of directors. Which one is not a role he indicates?
A) Auditing
B) Coaching
C) Public relations
D) Steering
Q4) In a short essay, discuss corporate governance.
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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Q1) Charles Prince, as CEO of Citigroup, had to address a number of ethical issues. Which of the following is not one of them?
A) Government probes in the UK
B) Separation of financial and investment roles
C) Misleading customers in the consumer lending unit
D) Loss of private banking licenses in the United States
Q2) Which of the following factors is not part of the identification of the moral problem?
A) A clear statement of what the moral problem is
B) The identification of those affected by the problem
C) The morality of individual employees
D) The moral issues of the problem reflection
Q3) In a short essay, identify the key elements of corruption and and how these may be classified.
Q4) The agreed starting point for decision making within a firm is called
A) Shared values
B) Basic assumptions
C) Artifacts
D) Self-interests
8
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Chapter 7: Decision Making and Human Resource Issues
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Sample Questions
Q1) What is not a reason for working at an extreme job?
A) Stimulating and challenging
B) High compensation
C) Pressure from domestic situation
D) Power/status
Q2) The Texas Instruments Code of Ethical Conduct includes three of the following elements. Which one is not included?
A) Is the action legal?
B) Does it comply with our values?
C) Will it benefit personally?
D) Keep asking until you get answer.
Q3) In which of the following stages of moral development is the belief that since individuals have a different set of values, it is important to view rules relative to the group, which must accept them?
A) Obedience and punishment orientation
B) Instrumental purpose and exchange
C) Interpersonal accord, conformity, mutual expectations
D) Social contract and individual rights
Q4) In a short essay, list and discuss the three categories of moral luck.
Q5) In a short essay, list and discuss the elements involved in employee monitoring.
Page 9
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Chapter 8: Ethics and the Environment
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Q1) In the ________________ strategic focus, firms use their proactive environmental commitments in an attempt to differentiate their products and services for their customers and also allows potential customers to consider the natural environment when they are purchasing products and services.
A) environmental cost leadership
B) ecobranding
C) ecoefficiency
D) beyond compliance leadership
Q2) Supply chain risk is based on the belief that as the climate change continues to impact the global environment, governments around the world adopt stronger and more rigid regulations to control GHG emissions.
A)True
B)False
Q3) An environmental compliance system does not include one of the following areas:
A) publish an annual environmental report
B) provide employees with environmental trainng
C) provide financial incentives for good environmental practice
D) ensure that the same environmental standards are consistent globally
Q4) In a short essay, explain the concept of the Tragedy of the Commons.
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Chapter 9: Ethics and Information Technology
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Q1) The Privacy Rights Clearinghouse suggests that privacy of personal calls made at work may be increased through using cell phones, pay phones, or separate phones that employers have designated for personal calls.
A)True
B)False
Q2) ________________ is one of the costs of using e-mail.
A) Frivolous use
B) Access to resources
C) Monitoring
D) Data protection
Q3) Issues that need to be addressed in the workers' rights policy include the type of monitoring that can take place within the firm, the type of information that may be collected pertaining to the employee, and the identification of what information would be considered private versus public.
A)True
B)False
Q4) In a short essay, list and discuss any three of the five issues that managers have to consider when deriving an ethical policy for information technology.
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11
Chapter 10: Ethics and Information Technology
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Q1) In a short essay, list the seven steps to developing a customer relationship management model.
Q2) A negative consequence of boycotting a product made in a sweatshop may be that___________________.
A) The factory workers may be fired
B) Customers may perceive the "free rider" benefits of supporting the boycott
C) Customers increase their level of social and personal self-esteem
D) Consumers feel better about themselves
Q3) The cause of the Johnson and Johnson Tylenol contamination case was______________.
A) Faulty manufacturing processes
B) Contaminated raw materials
C) Injection of cyanide into capsules
D) Customers taking incorrect doses
Q4) ____________are more willing than the general public is to purchase green products.
A) Greenback greens
B) Grousers
C) True blue greens
D) Basic browns
Page 12
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Chapter 11: Ethical Issues in the Developing World
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Sample Questions
Q1) Which of the following is NOT one of the goals developed during the United Nations Millennium Summit?
A) Eradicate extreme poverty and hunger
B) Maximize technology infrastructure
C) Achieve universal primary education
D) Promote gender equality and empower women
Q2) All of the following are key principles in order to be profitable addressing the needs of the customers in the bottom of the pyramid (BOP) except
A) Establishing or comingling competitive advantage
B) Foreign direct investment into the BOP country
C) Leveraging and transferring social embeddedness
D) Enhancing mutual values
Q3) Strategies to be used to address the needs of the customers at the base of the pyramid depend on the income level of the customers.
A)True
B)False
Q4) In a short essay, list the seven key principles that are required in order for a firm to be profitable when addressing the needs of customers in the bottom of the pyramid.
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Page 13
Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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Q1) Which of the following is not a component of the Caux Round Table Principles?
A) The responsibilities of business are beyond shareholders and are to all stakeholders
B) Businesses need to support multilateral trade
C) Businesses need to abolish all child labor
D) Businesses must avoid illicit operations
Q2) A code of ethics is valuable to a firm only if the employees believe in the code and the code has a direct impact on their actions within the firm.
A)True
B)False
Q3) The annual report of the firm is an element of the Living Code of Ethics.
A)True B)False
Q4) An effective code of ethics is formed of a standard set of recommendations that includes both advice and internal structures to help employees implement the code of ethics.
A)True B)False
Q5) In a short essay, describe the main elements of a Living Code of Ethics.
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Chapter 13: Evaluating Corporate Ethics
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Sample Questions
Q1) The ____________ was amended in 1986.
A) False Claims Act
B) Sarbanes-Oxley Act
C) Occupational Safety and Health Administration
D) US Foreign Corrupt Practices Act
Q2) The Integrity Helpline (Deloitte and Touche USA LLP) sets out a number of circumstances in which the hotline should be contacted by employees. Which is not one of them?
A) If you believe that ethics and compliance issues are not being resolved
B) If you don't feel comfortable reporting through normal channels
C) If the IT systems break down
D) If you wish to remain anonymous when filing a report
Q3) Low uncertainty avoidance not only accepts risk and ambiguity but embraces it. A)True
B)False
Q4) In a short essay, discuss the role of ethics officers.
Q5) Individualists will comply with ethical standards if they are based on the ethical norms of the group.
A)True
B)False
Page 15
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