BMO Leadership & Ethics 3 — Questions and Answers
Question 1: A business officer learns of a potential conflict of interest involving a board member. The BEST course of action is to:
- Allow the board member to self-regulate
- Document and disclose the conflict through governance protocols (Correct answer)
- Raise it informally at the next team lunch
- Ignore it unless financial harm has already occurred
Correct answer: Document and disclose the conflict through governance protocols
Governance best practices require formal disclosure and documentation of conflicts of interest to maintain transparency and protect organizational integrity.
Question 2: Which ethical framework judges the morality of an action solely by its consequences and outcomes?
- Deontological ethics
- Virtue ethics
- Consequentialism (Correct answer)
- Divine command theory
Correct answer: Consequentialism
Consequentialism (including utilitarianism) evaluates actions based on whether they produce the best overall outcomes or maximize well-being.
Question 3: A leader who prioritizes serving the needs of their team members above their own is practicing:
- Transactional leadership
- Servant leadership (Correct answer)
- Directive leadership
- Coercive leadership
Correct answer: Servant leadership
Servant leadership, developed by Robert Greenleaf, emphasizes the leader's role as a steward who empowers and supports followers first.
Question 4: Corporate Social Responsibility (CSR) is BEST described as a company's commitment to:
- Maximizing shareholder returns above all else
- Operating ethically while contributing to economic development and societal well-being (Correct answer)
- Complying strictly with the minimum legal requirements
- Donating a fixed percentage of profits to charity each year
Correct answer: Operating ethically while contributing to economic development and societal well-being
CSR encompasses a broad commitment to ethical conduct, environmental stewardship, community engagement, and fair treatment of all stakeholders.
Question 5: An employee raises a safety concern through official channels and faces retaliation. This situation relates to which ethical and legal concept?
- Fiduciary duty
- Whistleblower protection (Correct answer)
- Non-disclosure agreement
- Informed consent
Correct answer: Whistleblower protection
Whistleblower protection laws and ethical policies shield employees who report misconduct in good faith from adverse employment actions.
Question 6: In Kohlberg's model of moral development, a manager who follows company rules strictly because 'rules are rules' is operating at which level?
- Post-conventional
- Pre-conventional
- Conventional (Correct answer)
- Transcendent
Correct answer: Conventional
The conventional level in Kohlberg's model involves adherence to rules, laws, and social norms to maintain order and meet others' expectations.
Question 7: Which leadership behavior is MOST associated with building psychological safety in a team?
- Publicly punishing mistakes to set clear standards
- Encouraging open dialogue and admitting one's own errors (Correct answer)
- Maintaining strict information hierarchies
- Avoiding difficult conversations to keep morale high
Correct answer: Encouraging open dialogue and admitting one's own errors
Psychological safety (Edmondson) flourishes when leaders model vulnerability, welcome dissenting views, and normalize learning from mistakes.
BMO Leadership & Ethics 3
A business officer learns of a potential conflict of interest involving a board member.
The BEST course of action is to: