Ethics and Code of Conduct Flashcards

What is the purpose of a third-party code of conduct?

Answer: To extend the company's ethical standards to vendors, suppliers, and partners

A third-party code of conduct sets ethical expectations for business partners, reducing the risk of reputational or legal harm from partner misconduct.

Which of the following is an example of a facilitation payment?

Answer: A small payment to a foreign official to expedite a routine government service

Facilitation payments are small bribes paid to government officials to speed up routine actions and are prohibited under the FCPA and many other anti-bribery laws.

What does 'tone in the middle' refer to in ethics programs?

Answer: The ethical behaviors modeled by middle managers that reinforce or undermine senior leadership's tone

Middle managers translate executive ethics commitments into daily team behavior, making their personal ethics conduct critical to program success.

What is the best practice when an employee faces pressure from a supervisor to falsify records?

Answer: Refuse and report the incident through the compliance hotline or to the CCO

Employees must refuse to falsify records and report such pressure through established reporting channels to protect themselves and the organization.

Which of the following best defines 'ethical leadership'?

Answer: Leading by example through transparent, fair, and principled behavior that others can emulate

Ethical leadership means modeling integrity and fairness in ways that inspire and set standards for others throughout the organization.

What is the primary risk of a compliance program that focuses only on rules without fostering an ethical culture?

Answer: Employees comply technically while evading the spirit of the rules

Rules-only programs often produce technical compliance without genuine ethical behavior, leaving organizations vulnerable to creative violations not explicitly prohibited.