US CMA Part 2 · Chapter 9 · Question 21 of 23
Which of the following practices is MOST likely to undermine an organization's ethical culture even if a written code of conduct exists?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rewarding managers solely on aggressive financial targets while tolerating misconduct by top performers
Explanation
A code of conduct is undermined when incentives and enforcement signal that results matter more than how they are achieved. Rewarding only financial outcomes and excusing misconduct by high performers creates pressure and invites rationalization. Training, ethics-based evaluation criteria and independent oversight of hotline reports all reinforce an ethical culture.
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