CEA Whistleblower Protection & Reporting 5

Question 1

What is the significance of the 2011 Dodd-Frank rules that the SEC finalized regarding whistleblower protections?

Accepted Answer

They created a formal program with financial incentives and anti-retaliation rules for securities violations

Answer

The 2011 SEC rules formalized the Dodd-Frank whistleblower program, establishing financial awards, anti-retaliation protections, and submission procedures.

Question 2

Why might a company choose to implement a third-party ethics hotline rather than an internal one?

Accepted Answer

They provide greater perceived anonymity and independence from management influence

Answer

Third-party hotlines increase reporter confidence in anonymity and reduce concern that management will identify or suppress reports.

Question 3

An employee discovers their manager is falsifying expense reports totaling $800. They are unsure whether to report it. What ethical principle best supports reporting?

Accepted Answer

The duty-based principle of integrity requires reporting known dishonesty regardless of amount

Answer

Duty-based ethics holds that honesty and integrity are obligations regardless of the financial magnitude of the violation.

Question 4

What does it mean for a whistleblower to 'exhaust internal remedies' before external reporting?

Accepted Answer

The whistleblower must first attempt to address the issue through available internal channels before going outside the organization

Answer

Exhausting internal remedies means using the organization's own reporting channels (hotlines, compliance officers, boards) before escalating externally.

Question 5

Which of the following best describes 'protected disclosure' under federal whistleblower law?

Accepted Answer

A report of information an employee reasonably believes evidences a violation of law, rule, or regulation

Answer

A protected disclosure is a report of information that the employee reasonably believes demonstrates a legal violation, and it covers various channels and formats.

(CEA) Certified Ethics Associate Practice Test

(CEA) Certified Ethics Associate Practice Test

CEA Whistleblower Protection & Reporting 5