Professional Standards & Ethics Flashcards
7 cards from real CED practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Standards & Ethics flashcards as text
A board member discovers that the executive director has been using organizational funds to pay for personal travel. What is the board's primary ethical obligation?
Answer: Investigate the allegation thoroughly and take corrective action
Boards have a fiduciary duty to investigate credible allegations of financial misconduct and take appropriate corrective action.
Which principle best describes an executive director's obligation to disclose personal relationships with vendors seeking contracts?
Answer: Duty of loyalty
The duty of loyalty requires leaders to put the organization's interests ahead of personal gain, which includes disclosing conflicts of interest.
An ED receives a substantial gift from a major donor after a successful fundraising campaign. What is the ethically appropriate response?
Answer: Decline or disclose it according to the organization's gift acceptance policy
EDs must follow the organization's gift acceptance policy, which typically requires declining or disclosing gifts above a threshold to avoid conflicts of interest.
A nonprofit executive learns that a program officer at a major funding foundation is also a board member at a competitor organization. How should the ED handle grant communications?
Answer: Request the program officer recuse themselves from the review
Requesting recusal from a conflicted reviewer is the standard practice to protect the integrity of the grant process.
What does the ethical concept of 'stewardship' primarily require of a Certified Executive Director?
Answer: Managing organizational resources responsibly on behalf of stakeholders
Stewardship means managing assets, funds, and resources entrusted to the organization responsibly and in alignment with its mission.
An ED disagrees with a newly adopted board policy but believes it is legal and not harmful. The most ethical course of action is to:
Answer: Implement the policy while advocating for change through proper channels
Professional ethics require implementing lawful board decisions while using legitimate governance channels to advocate for policy changes.
Which action best demonstrates ethical leadership when an organization faces a budget shortfall requiring staff reductions?
Answer: Communicate transparently with staff about the situation and the decision-making process
Ethical leadership during difficult decisions includes transparent communication that respects the dignity and trust of all stakeholders.