WGU D550 TEST PAPER QUESTIONS AND
SOLUTIONS 2026 GRADED A+.
◍ Ethical Collapse (according to Marianne Jennings).Answer:"occurs
when any organization has drifted from the basic principles of right
and wrong"
◍ Marianne Jennings.Answer:Who wrote "The 7 signs of Ethical
Collapse"?
◍ 1) pressure to maintain numbers
2) fear and silence
3) young'uns and a bigger than life CEO (loyalty to the boss)
4) weak board of directors
5) conflicts of interest overlooked or unaddresses
6) innovation like no other company (sometimes too much)
7) goodness in the some areas atones for evil in others.Answer:What
are the 7 signs of ethical collapse?
◍ Ethics Resource Center (ERC).Answer:the oldest nonprofit
advancing high ethical standards and practices in public and private
institutions
,◍ Ethics Compliance and Officer Association (ECOA).Answer:a
memeber driven association for practitioners responsible for their
organization's ethics and compliance programs
◍ ERC (Ethics Resource Center) and ECOA (Ethics Compliance and
Officer Association).Answer:What two programs joined together to
form the ECI (Ethics Compliance Initiative)?
◍ Ethics Compliance Initiative (ECI).Answer:provides leading ethics
and compliance research and best practices, networking opportunities,
and certification to its membership (the go-to organization for ethics
and compliance resources in the workplace)
◍ 1) tone at the top
2) corporate culture
3) risk assessments
4) the CCO (Chief Compliance Officer)
5) testing and monitoring.Answer:What 5 factors separate the "good"
from the "great" compliance programs?
◍ Albert Camus.Answer:Who stated that "integrity has no need of
rules"/
◍ - nearly 3 out of 4 employees reported that they had observed
misconduct within their organizations in the previous 12 months
- more than 1/2 of the employees reported what they observed could
potentially cause a significant loss of public trust if discovered
,- some of the driving forces behind fraud and misconduct in the
corporate environment included pressure to do "whatever it takes" to
meet targets, not taking the code of conduct seriously, believing
employees will be rewarded based upon results and not the means
used to acheive them, and fear of losing one's job for not meeting
performance targets (64% reported the root cause of misconduct was
the pressure to do "whatever it takes")
- nearly 1/2 of the employees were uncertain that they would be
protected from retaliation if they reported concerns to management.
And more than 1/2 suggested a lack of confidence that they would be
satisfied with the outcome
- eth.Answer:What were the key findings found in KPMG's Integirty
Survey in 2013?
◍ - 78% would notify their supervisor or manager
- 54% would try to resolve the matter directly
- 53% would call the hotline
- 26% would notify someone outside of the organization
- 23% would look the other way or do nothing.Answer:According to
KPMG's survey in 2013, what would employees fo if they observed a
violation of their organization's standard conduct?
◍ National Labor Relations Act.Answer:protects the rights of
employees to act together in a concerted manner to address conditions
at work, with or without a union
, ◍ Internal Mechanisms.Answer:help manage, direct, and monitor the
corporate governance activities to create substainable stakeholder
value
◍ the board of directors (particularly independent directors), the audit
committee, management, IC, and the internal audit
function.Answer:What are some examples of internal mechanisms?
◍ External Mechanisms.Answer:intended to monitor the company's
activities, affairs, and performance to endure that the interests of
insiders (management, directors, and officers) are aligned with the
interests of outsiders (shareholders and other stakeholdders)
◍ financial markets, state and federal statutes, SEC regulations, court
decisions, and shareholder proposals.Answer:What are some
examples of external mechanisms?
◍ Due Care.Answer:provides that a director or officer act in good
faith, exercise the care that an ordinarily prudent person would
exercise in similar circumstances, and act in a way that is considered
to be in the interests of the corporation
◍ Duty of Loyalty.Answer:requires faithfulness; a director must place
the interests of the corporation ahead of their personal interest
◍ Good Faith.Answer:requires an honesty of purpose that leads to
caring for the well-being of the constituents of the fiduciary
SOLUTIONS 2026 GRADED A+.
◍ Ethical Collapse (according to Marianne Jennings).Answer:"occurs
when any organization has drifted from the basic principles of right
and wrong"
◍ Marianne Jennings.Answer:Who wrote "The 7 signs of Ethical
Collapse"?
◍ 1) pressure to maintain numbers
2) fear and silence
3) young'uns and a bigger than life CEO (loyalty to the boss)
4) weak board of directors
5) conflicts of interest overlooked or unaddresses
6) innovation like no other company (sometimes too much)
7) goodness in the some areas atones for evil in others.Answer:What
are the 7 signs of ethical collapse?
◍ Ethics Resource Center (ERC).Answer:the oldest nonprofit
advancing high ethical standards and practices in public and private
institutions
,◍ Ethics Compliance and Officer Association (ECOA).Answer:a
memeber driven association for practitioners responsible for their
organization's ethics and compliance programs
◍ ERC (Ethics Resource Center) and ECOA (Ethics Compliance and
Officer Association).Answer:What two programs joined together to
form the ECI (Ethics Compliance Initiative)?
◍ Ethics Compliance Initiative (ECI).Answer:provides leading ethics
and compliance research and best practices, networking opportunities,
and certification to its membership (the go-to organization for ethics
and compliance resources in the workplace)
◍ 1) tone at the top
2) corporate culture
3) risk assessments
4) the CCO (Chief Compliance Officer)
5) testing and monitoring.Answer:What 5 factors separate the "good"
from the "great" compliance programs?
◍ Albert Camus.Answer:Who stated that "integrity has no need of
rules"/
◍ - nearly 3 out of 4 employees reported that they had observed
misconduct within their organizations in the previous 12 months
- more than 1/2 of the employees reported what they observed could
potentially cause a significant loss of public trust if discovered
,- some of the driving forces behind fraud and misconduct in the
corporate environment included pressure to do "whatever it takes" to
meet targets, not taking the code of conduct seriously, believing
employees will be rewarded based upon results and not the means
used to acheive them, and fear of losing one's job for not meeting
performance targets (64% reported the root cause of misconduct was
the pressure to do "whatever it takes")
- nearly 1/2 of the employees were uncertain that they would be
protected from retaliation if they reported concerns to management.
And more than 1/2 suggested a lack of confidence that they would be
satisfied with the outcome
- eth.Answer:What were the key findings found in KPMG's Integirty
Survey in 2013?
◍ - 78% would notify their supervisor or manager
- 54% would try to resolve the matter directly
- 53% would call the hotline
- 26% would notify someone outside of the organization
- 23% would look the other way or do nothing.Answer:According to
KPMG's survey in 2013, what would employees fo if they observed a
violation of their organization's standard conduct?
◍ National Labor Relations Act.Answer:protects the rights of
employees to act together in a concerted manner to address conditions
at work, with or without a union
, ◍ Internal Mechanisms.Answer:help manage, direct, and monitor the
corporate governance activities to create substainable stakeholder
value
◍ the board of directors (particularly independent directors), the audit
committee, management, IC, and the internal audit
function.Answer:What are some examples of internal mechanisms?
◍ External Mechanisms.Answer:intended to monitor the company's
activities, affairs, and performance to endure that the interests of
insiders (management, directors, and officers) are aligned with the
interests of outsiders (shareholders and other stakeholdders)
◍ financial markets, state and federal statutes, SEC regulations, court
decisions, and shareholder proposals.Answer:What are some
examples of external mechanisms?
◍ Due Care.Answer:provides that a director or officer act in good
faith, exercise the care that an ordinarily prudent person would
exercise in similar circumstances, and act in a way that is considered
to be in the interests of the corporation
◍ Duty of Loyalty.Answer:requires faithfulness; a director must place
the interests of the corporation ahead of their personal interest
◍ Good Faith.Answer:requires an honesty of purpose that leads to
caring for the well-being of the constituents of the fiduciary
