Deck 7: Managing Ethics Risks & Opportunities.

Question 1

An important difference between anticipated and unanticipated crises is that

A) unanticipated crises are easier to control than anticipated crises.
B) unanticipated crises have a less negative reputational impact than anticipated crises.
C) anticipated crises start much earlier than unanticipated crises.
D) anticipated crises are typically less costly than unanticipated crises.
E) anticipated crises have a longer uncontrolled period than unanticipated crises.

Answer 1

anticipated crises are typically less costly than unanticipated crises.

Question 2

Which need is at the top of Maslow's Hierarchy of Needs?

A) esteem
B) respect
C) fulfillment
D) safety
E) affinity

Answer 2

fulfillment

Question 3

What is the recommended strategy when stakeholders' potential for threat is HIGH and the stakeholders' potential for cooperation is HIGH?

A) monitor
B) involve
C) discuss
D) defend
E) None of these are correct.

Answer 3

None of these are correct.

Question 4

It important that ERM and strategy-setting are integrated because

A) strategies should not be developed if inherent risks are too high.
B) strategies should align with an organization's mission, vision, and operational risk profiles.
C) ethics risks should be considered before strategies are activated.
D) mindset risks need to be minimized.
E) All of these are correct.

Question 5

An employee who thinks he is being treated unfairly because he is regularly working unpaid overtime urgently needs some extra cash. Using the fraud triangle, this situation likely constitutes

A) motive.
B) rationalization.
C) opportunity.
D) motive and rationalization.
E) motive and opportunity.

Question 6

An employee in charge of writing checks to suppliers in a manufacturing firm steals small sums of money every month by writing himself a check for the total of the discounts he negotiates with the company's suppliers. This type of rationalization is MOST likely based on

A) denial of responsibility.
B) appeal to higher loyalties.
C) condemnation of the condemners.
D) everyone else is doing it.
E) entitlement.

Question 7

The new Enterprise Risk Management (ERM) focusses on how risks and opportunities might impact on the achievement of strategic goals and on the creation, preservation, realization or erosion of value. ERM involves the assessment of an organization's

A) culture.
B) capabilities.
C) practices.
D) strategies.
E) All of these are correct.

Question 8

An employee in charge of the customer service help-line urgently needs some extra cash to his son's hospital bills. Using the fraud triangle, this situation likely constitutes

A) motive.
B) rationalization.
C) opportunity.
D) motive and rationalization.
E) motive and opportunity.

Question 9

An employee in charge of the cash register at a busy restaurant steals small sums of money at the end of the day whenever the cash in the register exceeds the sum of the day's bills. He thinks it is fine to do so because every day there are two or three customers that pay more than they should. This type of rationalization is based on

A) everyone else is doing it.
B) denial of the victim.
C) condemnation of the condemners.
D) appeal to higher loyalties.
E) entitlement.

Question 10

Which of the following is a performance component recommended by the Global Reporting Initiative relates to customer health and safety, marketing communications and customer privacy?

A) labour practices
B) human rights
C) product responsibility
D) society
E) customer rights

Question 11

Which the following BEST describes harassment?

A) Improper behaviour considered offensive by the victim, and the perpetrator knows (or does not know) that this is an offensive behaviour.
B) Improper behaviour considered offensive by society in general, and the perpetrator knows that this is an offensive behaviour.
C) Improper behaviour not considered offensive by the victim, and the perpetrator knows that this is an offensive behaviour.
D) Improper behaviour considered offensive by society in general, and the perpetrator does not know that this is an offensive behaviour.
E) Improper behaviour not considered offensive by the victim, and the perpetrator does not know that this is an offensive behaviour.

Question 12

An employee in charge of collecting tickets at the entrance of a movie theatre lets her friends enter the theatre without paying for tickets. She thinks it is fine to do so because the employees at the popcorn bar give free popcorn to their friends. This type of rationalization is based on

A) denial of responsibility.
B) denial of the victim.
C) everyone else is doing it.
D) appeal to higher loyalties.
E) entitlement.

Question 13

An employee in charge of counting and depositing cash holdings at end of the day urgently needs some extra cash to pay her son's medical bills. Using the fraud triangle, this situation likely constitutes

A) motive/need.
B) rationalization.
C) opportunity.
D) motive/need and rationalization.
E) motive/need and opportunity.

Question 14

Which of the following is a source of risk identified by both the AICPA/CICA/CPA Canada and the Institute of Internal Auditors?

A) environmental.
B) informational.
C) financial.
D) operational.
E) All of these are correct.

Question 15

Ethics and ethical corporate culture should likely play a vital role in setting

A) control environment.
B) risk assessment.
C) information and communication.
D) monitoring.
E) control activities

Question 16

Auditors are mandated to assess the client's risk of financial reporting fraud. Auditing standard SAS 99 considers which of the following a mandatory tool in fraud assessment?

A) discussion and brainstorming
B) fraud triangle
C) interviews with management
D) development of fraud training programs
E) All of these are correct.

Question 17

Most damage is usually done during which phase of a crisis?

A) pre-crisis
B) reputation restoration
C) controlled
D) uncontrolled
E) post-crisis

Question 18

What is the recommended strategy when stakeholders' potential for threat is LOW and the stakeholders' potential for cooperation is HIGH?

A) monitor
B) involve
C) discuss
D) defend
E) None of these are correct.

Question 19

Which of the following would be the LEAST useful report of ethics risks and opportunities?

A) by hypernorm value
B) by shareholder group
C) by product or service
D) by corporate objective
E) by reputation driver

Question 20

Which of the following three performance categories are recommended for disclosure by the Global Reporting Initiative?

A) economic, environmental and organizational
B) environmental, financial and social
C) economic, organizational and social
D) environmental, financial and organizational
E) economic, environmental and social