Which term refers to a corporation's failure to take responsible steps to prevent an offense?

• A. Reactive corporate fault
• B. Proactive corporate fault
• C. Corporate policy
• D. Corporate ethos

Answer: (B)

The idea being tested is corporate responsibility for preventing wrongdoing through foresight and preventive action. Proactive measures mean taking initiative to stop offenses before they happen. If a corporation fails to implement reasonable controls, training, monitoring, or compliance programs, it’s faulted for not acting proactively to prevent the offense. That is why the term describing this failure is proactive corporate fault: it captures the fault that arises from a lack of proactive, preventive steps.

Reactive corporate fault would describe blame arising after the offense occurs, which is not about prevention. Corporate policy refers to formal rules, and corporate ethos to overall culture or values—neither captures the fault arising from failing to prevent wrongdoing.