Professional Ethics & Compliance Flashcards
7 cards from real CSM 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 Ethics & Compliance flashcards as text
A sales manager is asked to sign off on inflated expense reports by a top performer. The most ethical response is to:
Answer: Reject the reports and address the misconduct through HR
Approving inflated expense reports constitutes fraud regardless of the employee's performance; managers must address misconduct through proper channels.
Which of the following is the primary purpose of a corporate code of ethics?
Answer: To set behavioral standards and guide decision-making across the organization
A code of ethics establishes the organization's values and provides a framework for ethical decision-making by all employees.
When selling to government clients, sales professionals must be especially cautious about:
Answer: Providing entertainment or gifts that could violate procurement rules
Government procurement rules often strictly prohibit or limit gifts and entertainment to prevent undue influence on public officials.
The ethical principle of 'non-maleficence' in a sales context means a salesperson should:
Answer: Avoid selling products that would harm the customer's interests
Non-maleficence — 'do no harm' — requires that sales professionals avoid recommending solutions that would damage the customer's interests.
A whistleblower protection program is important to an ethical sales organization because it:
Answer: Enables employees to report misconduct without fear of retaliation
Whistleblower protections encourage reporting of misconduct by shielding employees from retaliation, which is essential for a healthy compliance culture.
Which of the following best exemplifies ethical handling of a customer's objection based on a competitor's lower price?
Answer: Acknowledge the price difference and articulate your product's differentiated value
Ethically addressing a price objection means honestly acknowledging it and demonstrating your solution's value rather than disparaging competitors.
'Channel stuffing' — shipping excess inventory to distributors at period end — is primarily an ethical violation because it:
Answer: Artificially inflates reported revenue and misleads investors
Channel stuffing constitutes financial fraud by recognizing revenue prematurely, which misleads investors and violates SEC reporting standards.