CEA Ethical Leadership Development 4

Question 1

A leader discovers a colleague is engaged in insider trading. The most appropriate ethical action is to:

Accepted Answer

Report the activity through the organization's compliance or legal channel

Answer

Insider trading is illegal and the ethical duty requires prompt reporting through appropriate compliance channels, not self-resolution.

Question 2

Which of the following is an example of 'ethical fading' in leadership?

Accepted Answer

Gradual desensitization to ethical concerns through small incremental compromises

Answer

Ethical fading occurs when the moral dimension of decisions gradually disappears from awareness due to repeated small compromises.

Question 3

Which of the following best describes the 'newspaper front-page test' as an ethical decision-making tool?

Accepted Answer

Asking whether you would be comfortable if the decision were reported publicly

Answer

The newspaper front-page test prompts decision-makers to consider whether a decision would withstand public scrutiny and media coverage.

Question 4

Ethical leaders foster psychological safety primarily to:

Accepted Answer

Enable employees to raise concerns without fear of retaliation

Answer

Psychological safety allows employees to speak up about ethical concerns, mistakes, or misconduct without fear of negative consequences.

Question 5

A leader who consistently acts in accordance with their stated values is best described as demonstrating:

Accepted Answer

Integrity

Answer

Integrity is the alignment between a leader's stated values and their actual behavior — walking the talk consistently.

(CEA) Certified Ethics Associate Practice Test