The Simple Answer to the Question "Who Is Responsible for Ethics

question 73

True/False

The simple answer to the question "Who is responsible for ethics?" is top management.The President and CEO of any corporation have the ultimate responsibility for the ethics of an organization.

---

Definitions:

Securities Litigation Uniform Standards Act of 1998

A United States federal law that preempts class-action lawsuits related to securities fraud from being brought under state law, requiring instead that they be brought under federal law.

1933 Act

Also known as the Securities Act of 1933, it's a U.S. law enacted to ensure that investors receive significant information regarding securities being offered for public sale, and to prevent deceit, misrepresentations, and other frauds in the sale of securities.

State Court

A court that has jurisdiction over disputes with some connection to a U.S. state, as opposed to the federal court system.

Section 16(b)

A provision of the Securities Exchange Act that aims to prevent unfair use of nonpublic information by requiring insiders to return any profits made from buying and selling their company's stock within a short time frame.