Ethics and Code of Conduct Flashcards
6 cards from real CCO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethics and Code of Conduct flashcards as text
What is the role of ethics training in a compliance program?
Answer: To continuously reinforce ethical standards and decision-making skills
Ongoing ethics training reinforces expected behaviors, helps employees recognize ethical dilemmas, and strengthens the compliance culture.
Which of the following best describes an 'ethical dilemma'?
Answer: A situation where two or more ethical principles conflict, making the right choice unclear
An ethical dilemma presents competing values or principles where no option is clearly right or wrong, requiring careful judgment.
What should a CCO do when they discover that a senior executive is violating the Code of Conduct?
Answer: Report it to the appropriate governance body, such as the Audit Committee or Board
CCOs must escalate executive misconduct to the appropriate governance body, such as the Audit Committee, ensuring accountability at all levels.
What is the significance of annual ethics certifications signed by employees?
Answer: They confirm employee awareness and acknowledgment of ethics obligations
Annual certifications confirm that employees have read, understood, and agreed to abide by the Code of Conduct, creating a documented record of acknowledgment.
Which metric is most useful for measuring the effectiveness of an ethics hotline?
Answer: Reports submitted, investigation closure rate, and substantiation rate
Reports submitted, closure rates, and substantiation rates together indicate whether the hotline is functioning as an effective reporting channel.
What is 'ethical fading'?
Answer: The psychological process by which ethical considerations recede from awareness during decision-making
Ethical fading occurs when the moral dimensions of a decision become less salient due to pressures, habits, or rationalizations.