CCO Ethics and Code of Conduct 2

Question 1

What is the role of ethics training in a compliance program?

Accepted Answer

To continuously reinforce ethical standards and decision-making skills

Answer

To fulfill a one-time onboarding requirement

Answer

To replace the Code of Conduct

Answer

To satisfy only senior management requirements

Question 2

Which of the following best describes an 'ethical dilemma'?

Accepted Answer

A situation where two or more ethical principles conflict, making the right choice unclear

Answer

A clear-cut violation of company policy

Answer

A disagreement between managers

Answer

A documented compliance failure

Question 3

What should a CCO do when they discover that a senior executive is violating the Code of Conduct?

Accepted Answer

Report it to the appropriate governance body, such as the Audit Committee or Board

Answer

Ignore it to avoid conflict

Answer

Handle it informally without documentation

Answer

Terminate the executive immediately without investigation

Question 4

What is the significance of annual ethics certifications signed by employees?

Accepted Answer

They confirm employee awareness and acknowledgment of ethics obligations

Answer

They are primarily a legal technicality

Answer

They replace the need for ethics training

Answer

They are only required for executives

Question 5

Which metric is most useful for measuring the effectiveness of an ethics hotline?

Accepted Answer

Reports submitted, investigation closure rate, and substantiation rate

Answer

Number of callers per day

Answer

Cost of running the hotline

Answer

Number of anonymous versus named reporters

Question 6

What is 'ethical fading'?

Accepted Answer

The psychological process by which ethical considerations recede from awareness during decision-making

Answer

A decrease in employee engagement

Answer

The gradual obsolescence of a Code of Conduct

Answer

A reduction in ethics training frequency