1.

You are an ethics and compliance officer recently hired by a company recovering from a major scandal. You know that creating an ethical institutional culture will be difficult. What is one strategy that you could implement that has worked for companies in the past?

a. Provide cash awards for those who meet ethics compliance goals

b. Publicity call for the board of directors to be replaced to promote accountability

c. Give amnesty to anyone who reports their own or anothers unethical behavior

d. Hold daily press conferences answering any and all questions about your companys past misconduct

2.

Most employees fail to report unethical behavior when they witness it. True or False

3.

In order to be eligible for a reward, the Dodd-Frank Act requires that whistleblowers publicly testify. True or False

4.

Being a virtuous, approachable manager shows high moral development and reasoning, but ultimately makes it more difficult to run a business due to ethical complications.

True or False

5.

Companies attempt to detect fraud in various ways, but survey data shows that fraud is most often detected through______.

a. External whistleblowers

b. Ethics training

c. Tips

d. Management interviews of employees

6.

When performing an investigation, an ombudsman has access to all company employees.

7.

It is important for managers to maintain an appearance of ethical perfection, because if employees suspect the manager has done something unethical, they likely will too.

8.

You and your neighbor are good friends, work at the same company, and drive to the office together each day. One day Im conversation, your friend mentions that he has been getting information from a friend at a different company that guides the way he invests company money. You recognize this as insider trading. When he mentions this you dont say anything, but later decide that something must be done. Which of the following is your best response?

a. Speak to an outside source immediately, such as a journalist, because this unethical conduct cannot go unreported

b. Since no damage has been done, tell him he doesnt have to report it, but that he avoid it in the future

c. Talk with him about his misconduct first and make sure he reports it to his boss

d. Dont mention it to anyone; it is saving the company money and that is a positive thing

9.

It is unknown how much of federal spending is lost due to fraud each year. True or False

10.

You are a manager who recently became aware that one of your employees made use of an ethics assist line. As a result of their tip, a major company scandal was avoided. What would your best course of action?

a. Privately congratulate the employee on their moral courage

b. Do nothing in order to maintain the employees confidentiality

c. Send out companywide notice congratulating his employee

d. Hold a small gathering of your employees to honor this employee

11.

You are an ethics and compliance officer in a large company. Several concerns have been brought to your attention. Which is the most pressing concern that you would address first?

a. A marketing team member tells you that there is some internal division in their department making for a difficult working environment

b. A board member has come to you concerned that there may be protests against your companys perceived lack of diversity

c. A floor manager thinks that certain design components may not meet government regulations, which could result in a substantial fine.

d. An engineer is concerned that, under rare conditions, brake pads that have been shipped to customers may fail

12.

You are a manger at a paper supply company. One of your employees self-reports to you that they have been trading personal favors with a supplier in order to receive discounts for the company. You see this is clearly unethical behavior. Which of the following responses would be best?

a. I thought you were an upstanding employee, but this proves that I was wrong. Im sorry that I trusted you.

b. Youre a good employee, so Im surprised that you would do this. Help me understand how this happened.

c. Ive valued you as an employee, but in order to make sure that people know unethical behavior is serious I need to terminate your employment.

d. This sort of thing hasnt happened with you before, so this time we should just let it slide.

13.

A company has developed a reputation for unethical behavior but wishes to change its reputation. Which of the following would encourage open and honest communication from employees regarding unethical behavior?

a. Distributing memos that stress the importance of reading the corporate ethics policies

b. A no-tolerance policy where unethical behavior is met with termination

c. Ensure that changes are made when unethical conduct is revealed

d. conducting frequent audits of each employees conduct.

14.

The qui tam provision of the False Claims Act allows companies to sue the U.S. government on behaved of individuals who have been defrauded by the government. True or False

15.

You are assigned to monitor an ethics assist line and report back to management the information you gain through it. What information would you expect to see most often?

a. Concerns regarding legal infractions

b. Violations of government regulations

c. Fraudulent reports of abuses of power

d. Questions regarding a human resource issue

15 questions total