CCO Ethics and Code of Conduct 3

Question 1

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

Accepted Answer

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

Answer

To comply with SEC reporting requirements

Answer

To replace vendor contracts

Answer

To serve as a marketing tool for suppliers

Question 2

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

Accepted Answer

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

Answer

A contract bonus

Answer

A legitimate sales commission

Answer

A charitable donation on behalf of a client

Question 3

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

Accepted Answer

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

Answer

Mid-level pricing strategies

Answer

A neutral stance on controversial topics

Answer

Internal audit findings for mid-sized departments

Question 4

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

Accepted Answer

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

Answer

Comply to avoid job loss

Answer

Discuss it only with peers

Answer

Wait and see if the supervisor repeats the request

Question 5

Which of the following best defines 'ethical leadership'?

Accepted Answer

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

Answer

Making decisions that maximize short-term profit

Answer

Avoiding all risk-taking

Answer

Following only mandatory legal requirements

Question 6

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

Accepted Answer

Employees comply technically while evading the spirit of the rules

Answer

Over-compliance with regulations

Answer

Reduced training costs

Answer

Excessive reporting to regulators