InfoTrac Exercises

Chapter 4 Managerial Ethics and Corporate Social Responsibility

1. Companies see benefits from Sarbanes-Oxley; Compliance costly, but law has improved corporate governance. (News)

Dave Lenckus.
Full Text: COPYRIGHT 2007 Crain Communications, Inc.
Business Insurance, Nov 26, 2007 v41 i48 p4
Record: A171946568

Abstract: The stock market response to the creation of the Sarbanes-Oxley Act is seen as an indicator of the Act’s success. The responsibilities of directors, the financial impact of compliance and how the Act did not identify the American subprime mortgage situation are all discussed.

1. Why is compliance with the Sarbanes-Oxley Act so important?
2. How were non-profit organizations affected by the Act?
3. Gary Brown said "you can't legislate morality; you can't legislate trust,''. What is he talking about? What do you think is the role of the law in directing people’s behaviour?

2. AN UPTICK IN UNTRUTHS.

Byline: Aili McConnon; Edited by Deborah Stead
Full Text: COPYRIGHT 2007 The McGraw-Hill Companies, Inc.
Business Week, Dec 17, 2007 i4063 p17
Record: A172433926

Abstract: A dramatic increase in lying to customers, suppliers, workers, or the public has been noted. An expert noted that since the Enron crisis there has been a focus on compliance with the law rather than on building cultures where lying isn't tolerated.

1. What level of responsibility do managers have to ensure that their employees are not lying?
2. What can be done in an organization to promote telling the truth?
3. If you were told to lie to a customer by your manager, how would you react?