CEA Decision-Making Frameworks & Integrity Standards 4 — Questions and Answers
Question 1: A team leader uses a decision matrix to evaluate an ethically sensitive vendor choice. What is the PRIMARY benefit of this structured approach?
- It eliminates the need for leadership approval
- It ensures subjective bias does not affect the outcome
- It provides a transparent, documented process that reduces arbitrary judgment (Correct answer)
- It guarantees the lowest cost option is always selected
Correct answer: It provides a transparent, documented process that reduces arbitrary judgment
Decision matrices improve transparency and accountability by systematically weighing criteria, reducing arbitrary or biased choices.
Question 2: The 'Reasonable Wise Person' standard in ethical analysis asks decision-makers to consider what:
- The most senior executive in the organization would decide
- A knowledgeable, fair-minded, and thoughtful person would do in the same situation (Correct answer)
- The cheapest legally permissible option is
- The majority of peers in the industry currently do
Correct answer: A knowledgeable, fair-minded, and thoughtful person would do in the same situation
The Reasonable Wise Person standard uses an idealized, thoughtful decision-maker as a benchmark rather than legal minimums or peer norms.
Question 3: When using the SEAR framework (Stop, Evaluate, Act, Reflect), what is the purpose of the 'Reflect' step?
- To pause before making a hasty decision
- To assign blame after a bad outcome
- To review the decision after implementation and incorporate lessons learned (Correct answer)
- To obtain supervisory sign-off before acting
Correct answer: To review the decision after implementation and incorporate lessons learned
Reflection after action closes the ethical learning loop, allowing individuals and organizations to improve future decision-making.
Question 4: An executive directs staff to restate financial results to meet analyst expectations. Which ethical principle does this MOST directly violate?
- Loyalty to shareholders above all other stakeholders
- Accuracy and truthfulness in financial reporting (Correct answer)
- Corporate confidentiality obligations
- Fiduciary duty to minimize tax liability
Correct answer: Accuracy and truthfulness in financial reporting
Restating financials to meet expectations rather than reflect reality violates the core integrity principle of truthfulness and accuracy.
Question 5: In ethics, 'slippery slope' refers to the risk that:
- A single large ethical violation immediately destroys organizational culture
- Small compromises in integrity gradually escalate to significant misconduct over time (Correct answer)
- Employees who report misconduct face increasing retaliation
- Regulatory penalties grow proportionally with the severity of violations
Correct answer: Small compromises in integrity gradually escalate to significant misconduct over time
The slippery slope describes how tolerating minor ethical breaches can normalize misconduct and lead incrementally to more serious violations.
Question 6: A professional association's code of ethics requires members to 'act in the public interest.' This standard PRIMARILY reflects which ethical framework?
- Egoism
- Deontology focused on individual rights
- Stakeholder and utilitarian ethics (Correct answer)
- Virtue ethics focused on personal character alone
Correct answer: Stakeholder and utilitarian ethics
Acting in the public interest reflects both stakeholder theory (considering broad impact) and utilitarian concern for collective welfare.
Question 7: Which of the following scenarios BEST illustrates a conflict between loyalty and integrity?
- An employee chooses between two equally ethical vendors
- An auditor discovers fraud committed by a close colleague and must decide whether to report it (Correct answer)
- A manager schedules performance reviews earlier than required
- A team debates the most efficient workflow for a project
Correct answer: An auditor discovers fraud committed by a close colleague and must decide whether to report it
Discovering and reporting a colleague's fraud illustrates the classic tension between personal loyalty and professional integrity obligations.
CEA Decision-Making Frameworks & Integrity Standards 4
A team leader uses a decision matrix to evaluate an ethically sensitive vendor choice.
What is the PRIMARY benefit of this structured approach?