CSM Professional Ethics & Governance 2

Question 1

A strategic manager discovers that a colleague is sharing confidential merger plans with a competitor. Which ethical principle is being violated?

Accepted Answer

Fiduciary duty and confidentiality

Answer

Sharing confidential merger plans violates fiduciary duty, which requires acting in the best interests of the organization and maintaining confidentiality of privileged information.

Question 2

In corporate governance, the 'tone at the top' principle refers to which of the following?

Accepted Answer

The ethical culture and values modeled by senior leadership

Answer

Tone at the top refers to the ethical climate and culture that senior leaders establish through their behavior, decisions, and values, which cascades throughout the organization.

Question 3

Which governance mechanism is specifically designed to prevent a single individual from having unchecked authority over critical decisions?

Accepted Answer

Segregation of duties

Answer

Segregation of duties divides critical tasks among multiple individuals to reduce the risk of error or fraud by ensuring no single person controls an entire process.

Question 4

A CSM practitioner is asked to present overly optimistic projections to secure investor funding. The ethical response is to:

Accepted Answer

Refuse to participate and report the request to compliance

Answer

Presenting knowingly misleading projections to investors constitutes fraud; the ethical response is to refuse and escalate to compliance or legal counsel.

Question 5

The concept of 'duty of care' in strategic governance requires board members to:

Accepted Answer

Make informed decisions with reasonable diligence

Answer

Duty of care obligates board members to act with the diligence, care, and skill that a reasonably prudent person would exercise when making decisions on behalf of the organization.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM Professional Ethics & Governance 2