Conflict of Interest Management Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Conflict of Interest Management flashcards as text
A city councilmember votes on a zoning change that increases the value of property she owns nearby. She did not disclose her ownership. This violates ethics standards because:
Answer: Her personal financial interest was not disclosed prior to voting
Failure to disclose a personal financial interest before participating in a governmental decision violates conflict of interest requirements.
Which principle BEST explains why the appearance of a conflict of interest matters even if no actual conflict exists?
Answer: Public trust depends on confidence that decisions are free from improper influence
Organizational integrity and stakeholder trust are undermined by situations that raise reasonable doubts about impartiality, regardless of actual bias.
An employee who identifies a conflict of interest in a colleague but fails to report it may be considered:
Answer: Complicit in an ethics violation if reporting is organizationally required
In organizations with mandatory reporting obligations, failure to report a known conflict can make an observer complicit in the violation.
A company's conflict of interest committee reviews a disclosed conflict and decides no action is needed. The MOST important next step is:
Answer: Documenting the review decision and rationale in writing
Documenting the review and rationale creates an auditable record demonstrating that the organization took the disclosure seriously.
Which of the following is the MOST significant risk of allowing a conflicted individual to remain involved in a decision 'under supervision'?
Answer: The conflicted individual's participation may subtly influence the outcome despite oversight
Even with supervision, a conflicted person's framing, information selection, and advocacy can influence outcomes in ways oversight cannot fully prevent.
In the context of conflict of interest, 'recusal' means:
Answer: Withdrawing from participation in a matter due to a conflict
Recusal is the act of removing oneself from participating in any aspect of a decision or matter in which one has a conflict.
A financial advisor recommends a high-commission product to a client when a lower-cost equivalent exists. This MOST clearly illustrates which type of conflict?
Answer: A financial conflict where personal gain incentivizes advice contrary to client interest
Recommending products based on advisor compensation rather than client suitability is a classic financial conflict of interest.