CEA Professional Conduct & Organizational Ethics 4 ā Questions and Answers
Question 1: A company publicly commits to sustainability but internally ignores environmental policies. This is known as:
- Corporate social responsibility
- Greenwashing (Correct answer)
- Mission drift
- Strategic ethics
Correct answer: Greenwashing
Greenwashing occurs when an organization claims environmental responsibility without genuine internal commitment or action.
Question 2: Which ethical framework evaluates actions based on their adherence to rules or duties regardless of consequences?
- Utilitarianism
- Virtue ethics
- Deontology (Correct answer)
- Relativism
Correct answer: Deontology
Deontology judges the morality of actions based on adherence to rules and duties, not on outcomes.
Question 3: An employee reports financial misconduct to regulators after internal channels fail to respond. This person is known as a:
- Informant
- Whistleblower (Correct answer)
- Mediator
- Compliance officer
Correct answer: Whistleblower
A whistleblower is someone who reports illegal or unethical organizational conduct, often after internal remedies have been exhausted.
Question 4: What does 'due diligence' mean in the context of organizational ethics?
- Completing tasks before their deadlines
- Conducting thorough investigations to identify ethical risks before making decisions (Correct answer)
- Following all legal requirements minimally
- Delegating ethics decisions to legal counsel
Correct answer: Conducting thorough investigations to identify ethical risks before making decisions
Due diligence in ethics means proactively investigating potential risks and harms before taking action or entering into agreements.
Question 5: Which situation BEST illustrates the 'slippery slope' concept in professional ethics?
- A one-time ethical violation that is immediately corrected
- Small ethical compromises that gradually lead to major misconduct (Correct answer)
- A company enforcing strict zero-tolerance policies
- An employee refusing all gifts from vendors
Correct answer: Small ethical compromises that gradually lead to major misconduct
The slippery slope occurs when minor ethical violations are tolerated, normalizing larger misconduct over time.
Question 6: In stakeholder theory, which group is considered a PRIMARY stakeholder of a corporation?
- The general public
- Government regulators
- Employees and shareholders (Correct answer)
- Media organizations
Correct answer: Employees and shareholders
Primary stakeholdersāsuch as employees, shareholders, customers, and suppliersāhave a direct economic relationship with the firm.
Question 7: An ethics officer is asked by a CEO to drop an investigation into senior management misconduct. The officer should:
- Comply to preserve her job
- Consult with the board or audit committee to ensure the investigation proceeds appropriately (Correct answer)
- Immediately resign
- Delay the investigation indefinitely
Correct answer: Consult with the board or audit committee to ensure the investigation proceeds appropriately
Ethics officers should escalate interference to the board or audit committee to protect the integrity of the investigation.
CEA Professional Conduct & Organizational Ethics 4
A company publicly commits to sustainability but internally ignores environmental policies.
This is known as: