Code of Ethics Week 8

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Questions and Answers

What is a code of ethics?

  • A training program for new employees
  • A set of rules that must be followed
  • A document that outlines job responsibilities
  • A set of principles or guidelines that outline acceptable behaviors and practices (correct)

What is respect for others in a professional setting?

  • Maintaining professional competence
  • Treating others with disrespect and unprofessionalism
  • Acting with integrity and honesty
  • Treating others with courtesy, respect, and professionalism (correct)

What is integrity in a professional setting?

  • Maintaining professional competence
  • Acting dishonestly and unethically
  • Acting honestly, ethically, and transparently (correct)
  • Complying with laws and regulations

What should professionals do with sensitive information?

<p>Respect the confidentiality and privacy of the information (D)</p> Signup and view all the answers

Why is it important to comply with laws and regulations?

<p>To adhere to all applicable laws, regulations, and organizational policies (C)</p> Signup and view all the answers

What is professional competence?

<p>Maintaining and enhancing professional knowledge and skills (C)</p> Signup and view all the answers

Why is impartiality and objectivity important?

<p>To avoid bias or conflicts of interest (A)</p> Signup and view all the answers

What should professionals do if they encounter a violation of the code of ethics?

<p>Report it promptly (C)</p> Signup and view all the answers

What is a key aspect of promoting a strong ethical culture throughout an organization?

<p>Holding individuals accountable for ethical lapses (D)</p> Signup and view all the answers

What is the primary objective of a compliance-oriented approach to corporate governance?

<p>Prioritizing compliance with legal and regulatory requirements (A)</p> Signup and view all the answers

What is a key challenge in stakeholder management?

<p>Balancing competing stakeholders' interests and expectations (A)</p> Signup and view all the answers

What is the focus of a risk-based approach to corporate governance?

<p>Identifying and managing risks that impact the organization (C)</p> Signup and view all the answers

What is a key aspect of a principles-based approach to corporate governance?

<p>Emphasizing principles such as integrity and accountability (C)</p> Signup and view all the answers

What is the significance of effective communication and relationship management in corporate governance?

<p>It enables balancing competing stakeholders' interests and expectations (C)</p> Signup and view all the answers

What is a key consideration in adopting a corporate governance approach?

<p>The organization's size and industry (B)</p> Signup and view all the answers

What is the primary goal of corporate governance?

<p>Maintaining focus on the company's strategic objectives (A)</p> Signup and view all the answers

What is a key characteristic of the principles-based approach?

<p>It allows companies flexibility in implementing governance practices (B)</p> Signup and view all the answers

What is the main focus of the shareholder-centric approach?

<p>Enhancing shareholder interests (B)</p> Signup and view all the answers

What is the goal of integrated reporting?

<p>To enhance transparency and accountability (C)</p> Signup and view all the answers

What is a characteristic of the rules-based approach?

<p>It relies on specific regulations and laws (C)</p> Signup and view all the answers

What is the focus of the continuous improvement approach?

<p>Continuously learning, adapting, and improving (D)</p> Signup and view all the answers

What is reported in integrated reporting?

<p>Both financial and non-financial information (B)</p> Signup and view all the answers

What is a major challenge for corporate governance in multiple jurisdictions?

<p>Ensuring consistent governance standards and compliance (D)</p> Signup and view all the answers

What is the role of shareholders in the shareholder-centric approach?

<p>They have a strong voice in corporate decision-making (B)</p> Signup and view all the answers

What is the key benefit of the principles-based approach?

<p>It allows companies flexibility in implementing governance practices (D)</p> Signup and view all the answers

Which approach to corporate governance emphasizes the role of the board of directors?

<p>Board-Centric Approach (C)</p> Signup and view all the answers

What is a significant consideration for boards and management in corporate governance?

<p>Cybersecurity and data privacy (D)</p> Signup and view all the answers

What is the focus of the ethics and values-based approach to corporate governance?

<p>Integrity and honesty as foundational elements (D)</p> Signup and view all the answers

Why is stakeholder engagement important in corporate governance?

<p>To consider diverse perspectives and integrate concerns (B)</p> Signup and view all the answers

What is a key challenge in managing cultural differences and operational risks across borders?

<p>Managing diverse regulatory requirements (D)</p> Signup and view all the answers

What is the purpose of a board-centric approach to corporate governance?

<p>To strengthen board effectiveness, independence, and accountability (A)</p> Signup and view all the answers

What is a critical aspect of corporate governance in today's digital landscape?

<p>Cybersecurity and data privacy (C)</p> Signup and view all the answers

According to stewardship theory, what motivates managers to act in the best interests of the organization?

<p>Intrinsic factors such as pride in their work (B)</p> Signup and view all the answers

What is the main difference between stewardship theory and agency theory?

<p>Stewardship theory assumes managers act in the best interests of the organization, while agency theory assumes self-interest (B)</p> Signup and view all the answers

Who are considered stakeholders according to stakeholder theory?

<p>Any individuals or groups affected by the organization's actions (B)</p> Signup and view all the answers

What is a key principle of stakeholder theory?

<p>Stakeholders have diverse interests and needs (C)</p> Signup and view all the answers

What is the role of managers according to stewardship theory?

<p>Managers are custodians or stewards of the organization's resources (C)</p> Signup and view all the answers

What is a characteristic of intrinsic motivation according to stewardship theory?

<p>Managers are motivated by a sense of responsibility (D)</p> Signup and view all the answers

What is a key difference between stakeholder theory and traditional management theory?

<p>Stakeholder theory recognizes a broader range of stakeholders, while traditional management theory focuses on shareholders (A)</p> Signup and view all the answers

What is the result of intrinsic motivation in managers according to stewardship theory?

<p>Managers prioritize the long-term interests of the organization (D)</p> Signup and view all the answers

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Study Notes

Code of Ethics

  • A code of ethics is a set of principles or guidelines outlining acceptable behaviors and practices within a profession, organization, or group.
  • Key principles include:
    • Respectful behavior: treating others with courtesy, respect, and professionalism, and avoiding behavior that could be perceived as discriminatory, harassing, or offensive.
    • Integrity: acting honestly, ethically, and transparently in all dealings, and avoiding conflicts of interest or situations that could compromise one's integrity.
    • Confidentiality: respecting privacy and confidentiality of information, especially when dealing with sensitive or personal data.
    • Compliance with laws and regulations: adhering to all applicable laws, regulations, and organizational policies, and reporting any violations or potential violations promptly.
    • Professional competence: commitment to maintaining and enhancing professional knowledge and skills, ensuring that work is performed competently and in accordance with best practices.
    • Impartiality and objectivity: avoiding bias or actively engaging with stakeholders, considering their perspectives, and integrating their concerns into decision-making processes.

Corporate Governance

  • Approaches to corporate governance include:
    • Board-centric approach: strengthening board effectiveness, independence, and accountability.
    • Ethics and values-based approach: emphasizing integrity, honesty, and ethical behavior as foundational elements of corporate governance.
    • Compliance-oriented approach: prioritizing compliance with legal and regulatory requirements as the primary objective of corporate governance.
    • Risk-based approach: recognizing the importance of risk management in governance, focusing on identifying, assessing, and managing risks that could impact the organization's performance, reputation, or viability.
    • Principles-based approach: establishing broad principles and guidelines for governance rather than detailed rules.
    • Rules-based approach: relying on specific regulations, laws, and codes of conduct to govern corporate behavior.
    • Integrated reporting approach: enhancing transparency and accountability by integrating financial and non-financial information into corporate reporting.
    • Continuous improvement approach: acknowledging that corporate governance is an ongoing process, emphasizing the importance of continuous learning, adaptation, and improvement.

Stakeholder Theory

  • Key principles of stakeholder theory include:
    • Broad definition of stakeholders: any individuals or groups who can affect or be affected by the organization's actions.
    • Stakeholder interests and needs: recognizing that different stakeholders have diverse interests, needs, and expectations from the organization.

Stewardship Theory

  • Stewardship theory suggests that managers are motivated by:
    • Intrinsic motivation: factors such as pride in their work, a sense of responsibility, and a desire to contribute to the organization's success.
    • Alignment of interests: managers acting in the best interests of shareholders and the organization as a whole, rather than solely in their own self-interest.

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