Client Relationship Management & Ethical Standards Flashcards

A consultant discovers mid-engagement that the client's project scope has expanded significantly beyond the original contract. What is the most ethical course of action?

Answer: Document the scope change and negotiate a formal amendment with the client

Scope changes should be formally documented and negotiated through a contract amendment to maintain transparency and protect both parties.

Under the CMC Code of Professional Conduct, which behavior most directly violates the principle of objectivity?

Answer: Recommending a vendor in whom the consultant holds undisclosed financial interest

Recommending a vendor with an undisclosed financial interest constitutes a conflict of interest that undermines the consultant's objectivity.

A long-term client requests that a consultant bend ethical guidelines 'just this once' to help them win a contract. The consultant should:

Answer: Refuse and explain the ethical standards that govern the profession

CMC standards require consultants to refuse unethical requests and explain the professional standards that prohibit such conduct.

Which of the following best describes the concept of 'client dependency' as an ethical risk in consulting?

Answer: Clients relying on consultants for decisions they should make themselves, reducing client capability

Client dependency occurs when consultants foster reliance rather than building client capability, which conflicts with the ethical duty to serve client interests.

When a CMC consultant is engaged by two competing firms in the same industry, the primary ethical obligation is to:

Answer: Disclose the situation to both clients and obtain informed consent or withdraw from one

Serving competing clients creates a conflict of interest that must be disclosed to both parties, who must provide informed consent for the arrangement to continue ethically.

A consultant's engagement letter should explicitly address which element to protect both parties ethically and legally?

Answer: Scope, deliverables, fees, timeline, and confidentiality terms

A complete engagement letter defines scope, deliverables, fees, timeline, and confidentiality to create a clear, mutually understood agreement.

If a consultant learns during an engagement that the client organization is engaged in practices that are legal but ethically questionable, the consultant should first:

Answer: Raise concerns professionally with the appropriate client contact

CMC ethics require consultants to raise concerns professionally with the client before taking more drastic action such as withdrawal.