Ethical Standards & Professional Conduct Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethical Standards & Professional Conduct flashcards as text
Which ethical standard requires a commercial manager to avoid using insider knowledge for personal financial gain?
Answer: Avoidance of insider trading and misuse of privileged information
Professional standards prohibit using privileged commercial or financial information for personal benefit, which constitutes insider dealing.
A commercial manager negotiates a favorable contract renewal and receives a personal bonus from the supplier afterward. This is best characterized as:
Answer: A kickback that creates a conflict of interest and must be refused or disclosed
Post-negotiation payments from suppliers to buyers are kickbacks that compromise impartiality and violate ethical standards.
Under ethical standards, how should a commercial manager handle confidential information shared during failed contract negotiations?
Answer: Maintain confidentiality as if the NDA remains in force
Confidential information obtained during negotiations must be treated as confidential even if the deal fails, reflecting ongoing duty of trust.
What is the primary purpose of a code of conduct for commercial management professionals?
Answer: To provide a framework of ethical standards guiding professional behavior
A code of conduct establishes shared ethical standards that guide professional behavior and maintain trust in the profession.
A commercial manager notices their employer is systematically overcharging a government client. The most ethically appropriate action is to:
Answer: Raise the concern internally through compliance or ethics channels, and escalate externally if unresolved
Internal escalation through compliance channels is the appropriate first step, with external reporting if internal channels fail to resolve the misconduct.
Which of the following best supports the ethical principle of 'stewardship' in commercial management?
Answer: Managing organizational resources responsibly with long-term stakeholder interests in mind
Stewardship means managing resources responsibly, balancing organizational objectives with broader stakeholder and societal responsibilities.
When a commercial manager suspects a contracting party may be engaging in money laundering, they should:
Answer: Terminate engagement and report suspicions to compliance/anti-money laundering authorities
AML (anti-money laundering) obligations require commercial professionals to report suspected money laundering to appropriate compliance authorities.