CGM Ethics & Compliance Management Flashcards

A general manager discovers that a sales team member has been falsifying expense reports. What is the MOST appropriate first step?

Answer: Conduct a quiet internal investigation before taking action

An internal investigation should be conducted first to gather facts before deciding on disciplinary action.

Which document typically defines a company's standards for ethical behavior and guides employee decision-making?

Answer: Code of conduct

A code of conduct outlines the ethical standards and behavioral expectations for all employees.

What is the primary purpose of a whistleblower policy in an organization?

Answer: To protect employees who report unethical or illegal activity

Whistleblower policies protect employees from retaliation when they report misconduct or violations.

A CGM candidate must understand that conflicts of interest in management are BEST addressed by:

Answer: Disclosing them and recusing oneself from related decisions

Disclosure and recusal from related decisions is the ethical standard for managing conflicts of interest.

The Sarbanes-Oxley Act (SOX) primarily affects which type of organizations in the US?

Answer: Publicly traded companies

SOX applies to publicly traded companies and establishes requirements for financial reporting and internal controls.

Which approach BEST demonstrates a manager's commitment to an ethical organizational culture?

Answer: Leading by example and modeling ethical behavior

Leaders who model ethical behavior create a culture where employees follow suit and hold themselves accountable.