Bachelor of General Studies (BGS) Degree Practice Exam

What is a potential benefit of having a strong ethics program under the U.S. Corporate Sentencing Guidelines?

1. Higher profit margins

2. Reduced criminal penalties for executives

3. More favorable media coverage

4. Enhanced employee loyalty

The correct answer is: Reduced criminal penalties for executives

A strong ethics program under the U.S. Corporate Sentencing Guidelines can lead to reduced criminal penalties for executives in the event of misconduct. The guidelines encourage companies to implement effective compliance and ethics programs as a means to prevent and detect wrongdoing. When a company can demonstrate that it has a robust ethics program in place, it may be viewed more favorably by the courts, which can result in leniency in sentencing for executives if violations occur. This creates an incentive for corporations to prioritize ethical behavior and compliance, ultimately fostering a culture of accountability within the organization. While there can be other advantages to having a strong ethics program, such as enhancing employee loyalty or potentially improving public perception, the specific connection to reduced criminal penalties is a significant legal and financial incentive that directly aligns with the intentions of the Corporate Sentencing Guidelines.