1. An HR professional receives an anonymous tip alleging unethical practices on the part of a top-performing sales professional. The organization takes ethical issues very seriously. Which action should the HR professional take with regard to the allegations?

A) Investigate and establish any available factual information related to the allegation.
B) Penalize the sales professional by garnishing her earned commissions, because some of those commissions were earned unethically.
C) Immediately engage the sales professional regarding the allegations and see how she responds.
D) Attempt to discover the source of the anonymous tip so he can ask for additional information.



2. Refer to the following scenario for the next 2 questions. A manufacturing company has secured and signed a significant contract with a large retailer. The contract lists steps that are to be included in the manufacturing process that the company agrees to adhere to. A supervisor and several employees from the manufacturing department have learned that by skipping some of the steps outlined, there is no material change to the product. They begin to skip steps in the process. They do not volunteer this information, but neither do they try to hide it. During an exit interview, an employee discloses this information to the HR manager. The HR manager also learns that only the supervisor and members of the department are actively aware of this change. The employee further states that an agreement was made between the supervisor and the staff to not disclose this information to the division manager, as he has an ownership interest in the retailer. How should HR respond to the information received during the exit interview?

A) A. Immediately speak with each employee one on one to validate what has been heard about the production process and any skipped steps directed by the supervisor.
B) B. Talk only with the department supervisor to begin the process of understanding what is happening and why, and then respond accordingly, based on what is learned.
C) C. Share with the division manager what was learned in the exit interview, and then prepare to speak with the department supervisor about the process.
D) D. File the information, as it is from only one former employee



3. What action should the HR manager take to resolve the potential conflict of interest on the part of the division manager?

A) A. Keep the information confidential in the interest of preserving a good working relationship.
B) B. Refrain from advising senior leaders of the potential conflict, as the contract has already been signed.
C) C. Research any related policies concerning conflicts of interest, sharing them only with the division manager.
D) D. Validate the information, and if accurate, advise senior leaders of the division manager's ownership interest.



4. Which action can HR take to assist in creating an ethical organization?

A) Referring all ethical issues to legal counsel
B) Initiating a tip line for reporting ethical violations
C) Training leaders in ethical practices
D) Handling all ethical issues that arise



5. Which best describes the ethical and/or compliance problem raised by a company employee having a separate consulting contract with one of the company's clients?

A) Conflict of interest
B) Copyright violation
C) Insider trading
D) Competitive advantage



6. Refer to the following scenario for the next 4 questions. A global company benchmarks against similar companies that have recently faced costly and embarrassing cybersecurity breaches resulting in the loss of customer confidence. In response, the CEO assigns tasks to three departments: The IT department is charged with enhancing data accuracy, security, and privacy. Risk management is charged with implementing improved governance, compliance, and enforcement. HR is charged with strengthening procedures around acquisition of staff, policy creation, the code of ethics, and communication. Internally, the company must protect proprietary information and determine what limits to place on data retention and acquisition. Externally, they must also acquire competitive data and follow the law in all jurisdictions of their operations. Challenges with social media, web browsing, instant messaging, and high levels of employees traveling with their electronic devices create additional burdens. Currently, the company provides devices for all eligible employees. The three departments agree that employees must possess a work ethic, motivation, and integrity. The head of IT believes that there are three sources for recruitment, selection, and staffing: the military, college graduates with degrees in information technology, and professional hackers—skilled computer experts who use their technical knowledge to overcome a problem. IT plans to hire a professional hacker as an independent contractor to conduct ongoing IT vulnerability assessments to improve security, review the possibilities of penetration, and make recommendations to protect the system. Which protective measures should HR recommend?

A) A. Conduct a background check and create an independent contractor agreement that sets terms to prohibit any access not specifically authorized.
B) B. Give the person administrative passwords and see whether they are secure enough or should be changed.
C) C. Require that the independent contractor sign an invention agreement and honor code statement.
D) D. During the interview process, ask candidates to access the company's system and provide evidence of their ability to locate weaknesses.



7. In order to determine the full scope of enterprise risk that exists, which areas should HR review in an IT audit?

A) A. Compensation structure
B) B. Links between business and information strategy and business continuity
C) C. Ways to reduce the amount of sensitive data that must be protected
D) D. Reasons for the lack of outsourcing to third parties with deeper IT experience



8. Which technology policies should the HR manager recommend that the company implement? D is incorrect. A company may stipulate that a company-provided device be used only for business and may expressly prohibit use while driving.

A) A. The company must approve all personal devices the employee uses at home.
B) B. The company can review all charges and information on a company-provided device.
C) C. All employees must use their own electronic devices for work.
D) D. Employees may use devices at any time.



9. Where should the HR manager look to find potential employees with skills in cybersecurity?

A) A. Consider individuals who have recent criminal records related to Internet security and offer them state-of-the-art equipment.
B) B. Search for individuals with any computer-related degree.
C) C. Look on 'dark' websites that attract cybercriminals and promise them large hiring bonuses.
D) D. Recruit former military Internet workers who are attracted by a higher level of pay and flexibility.



10. Codes of Conduct An employee is faced with an ethical dilemma dealing with a supplier. How should the code of ethics support the employee?

A) By guiding decision making and behavior
B) By managing risks to the organization's public image
C) By reflecting the legal traditions of the home country
D) By accommodating the norms of the countries in which the organization operates