Answer the following statements true (T) or false (F)

Question

1. The Sarbanes-Oxley Act set up the Federal Trade Commission to ensure consumer protection and to eliminate and prevent anticompetitive business practices, with penalties of as much as 25 years in prison for noncompliance.
2. Companies can reduce unethical behavior by offering a case-based approach to ethics training that presents employees with ethical dilemmas and clarifies expectations.
3. Despite recent pressure from stockholders to increase profits, World Extraction Corp., a global petroleum organization, has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration when making decisions, and obeying the laws of host countries as well as international law. World Extraction Corp. provides an example of a company acting in a socially responsible way.
4. As businesses are going green today, sustainability programs have produced environmental benefits, but unfortunately, they have also resulted in higher costs and lower revenues, and at times, they have hurt organizations competitively.
5. After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

Answer 1

1. FALSE
The Sarbanes-Oxley Act established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance.
2. TRUE
Human resource professionals indicate that case-based training regarding ethical dilemmas and how to respond to them may reduce unethical behavior in the workplace.
3. TRUE
According to University of Georgia business scholar Archie B. Carroll, corporate social responsibility rests at the top of a pyramid of a corporation's obligations, right up there with economic, legal, and ethical obligations. Carroll suggests the responsibilities of an organization in the global economy should take the following priorities, with profit being the most fundamental (base of the pyramid) and corporate citizenship at the top: (1) Be a good global corporate citizen, as defined by the host country's expectations; (2) be ethical in practices, taking host-country and global standards into consideration; (3) obey the law of host countries as well as international law; and (4) make a profit consistent with expectations for international business.
4. FALSE
Today, going green has entered the business mainstream; sustainability programs are producing not only environmental benefits but also cost savings, revenue growth, and competitive advantages.
5. FALSE
Corporate governance is the system of governing a company so that the interests of corporate owners and other stakeholders are protected. After the Enron and other scandals, there was a renewed interest in corporate governance.