CHAPTER 4 REVIEW

THE INSTITUTIONALIZATION OF BUSINESS ETHICS

I. Managing Ethical Risk Through Mandate and Voluntary Programs

Voluntary Boundary

Core Practice

Mandatory Boundary

Better Business Bureau (BBB)

II. Mandated Requirements for Legal Compliance

Why are laws and regulations established?

Why are laws regulating business conduct needed?

Civil Law

Criminal Law

Difference between Criminal Law and Civil Law

A. Laws Regulating Competition: Sherman Antitrust Act, 1890

B. Laws Protecting Consumers: Pure Food and Drug Act, 1906

C. Laws Promoting Equity and Safety: Occupational Safety and Health Act, 1970

D. Laws Protecting the Environment: Clean Air Act, 1970; Environmental Protection Agency (EPA)

III. The Sarbanes-Oxley Act

Why did Congress pass SOX?

What are the 5 duties of the Public Company Accounting Oversight Board?

SOX aims to eliminate conflicts of interests among which group?

What is the national cost of compliance of SOX?

How does SOX protect and encourage employees to come forward with information?

Name two of the six benefits of SOX.

IV. Laws That Encourage Ethical Conduct: Name two examples.

V. Federal Sentencing Guidelines for Organizations: What was the goal of Congress in passing the FSGO in 1991?

VI. Highly Appropriate Core Practices

A. Philanthropic Contributions: Name the four major benefits to society.

B. Strategic Philanthropy: Defined.