Question

Identify the specifics offered to boards of firms by the Federal Sentencing Guidelines (FSG) for mitigating eventual fines and sentences in carrying out their legal duties by keeping ethics and compliance in mind. (Check all that apply.)

Select all that apply:

A. Boards must be truly knowledgeable about the operation and content of ethics programs.

B. Boards should exercise "reasonable oversight" regarding the implementation and effectiveness of ethics/compliance programs.

C. Boards must work with executives to evaluate the incentives for ethical behavior by every employee.

D. Boards are responsible for directly managing day-to-day ethics and compliance activities.

E. Boards are exempt from any legal consequences related to ethics and compliance violations.

F. Boards should delegate all ethics and compliance responsibilities to lower-level management.

G. Boards should not be involved in evaluating employee incentives for ethical behavior.

H. Boards are only accountable for financial performance and not ethical considerations.

Answer 1

The specific guidelines offered to boards of firms by the Federal Sentencing Guidelines (FSG) for mitigating eventual fines and sentences in carrying out their legal duties by keeping ethics and compliance in mind are: being knowledgeable about ethics programs, exercising reasonable oversight, and working with executives to evaluate incentives for ethical behavior. Option A, B and C are the correct answer.

Step-by-step explanation:

The specifics offered to boards of firms by the Federal Sentencing Guidelines (FSG) for mitigating eventual fines and sentences in carrying out their legal duties by keeping ethics and compliance in mind are as follows:

• A. Boards must be truly knowledgeable about the operation and content of ethics programs.
• B. Boards should exercise 'reasonable oversight' regarding the implementation and effectiveness of ethics/compliance programs.
• C. Boards must work with executives to evaluate the incentives for ethical behavior by every employee.

These guidelines emphasize the importance of board involvement in ethics and compliance to ensure that organizations maintain high ethical standards and prevent compliance violations.