CGM CGM Ethics & Compliance Management

Question 1

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

Accepted Answer

Conduct a quiet internal investigation before taking action

Answer

Immediately terminate the employee

Answer

Ignore it if the amounts are small

Answer

Transfer the employee to another department

Question 2

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

Accepted Answer

Code of conduct

Answer

Employee handbook

Answer

Organizational chart

Answer

Mission statement

Question 3

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

Accepted Answer

To protect employees who report unethical or illegal activity

Answer

To encourage employees to spy on each other

Answer

To punish employees who complain about management

Answer

To document employee performance issues

Question 4

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

Accepted Answer

Disclosing them and recusing oneself from related decisions

Answer

Keeping them secret from leadership

Answer

Allowing the manager to handle them independently

Answer

Resolving them after the fact

Question 5

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

Accepted Answer

Publicly traded companies

Answer

Privately held small businesses

Answer

Non-profit organizations only

Answer

Government agencies only

Question 6

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

Accepted Answer

Leading by example and modeling ethical behavior

Answer

Setting strict rules but not following them personally

Answer

Only enforcing ethics policies when auditors are present

Answer

Delegating all ethics responsibilities to HR