CPCU Ethics Exam| 150 + Questions and Verified Answers| 100% Correct (2023/ 2024 New Update)

CPCU Ethics Exam| 150 + Questions and Verified Answers| 100% Correct (2023/ 2024 New Update) QUESTION While transparency in every step of your contact with customers is essential Answer: transparency and accountability at all levels within the company is vital QUESTION Employees at all levels work on a single objective Answer: to compete in a market producing and servicing a product that meets the needs of customers QUESTION Creating and maintaining public trust and confidence in the insurance industry Answer: is the responsibility of every employee of each company in the industry QUESTION A company is nothing but a collection of individual actors Answer: Promoting and preserving a standard of ethical integrity requires the active participation of each employee. QUESTION an individual, in this case a company leader or manager Answer: must have a well-developed ethical value system QUESTION Managers who possess a well-defined ethical value system Answer: will make well-thought-out, fair, and ultimately just decisions when faced with an ethical dilemma QUESTION If a company does not have leaders and managers who are capable of making consistent, wellthought-out and ethical decisions Answer: the possibility exists that its employees will act in a similar fashion and the company will develop an unfavorable ethical reputation QUESTION the manager needs to take whatever actions are necessary to achieve the company's bottom line goals and objectives. With such a single-minded goal, the actions taken could be ethical or unethical Answer: to the company, if this were the manager's only concentration, as long as the bottom line was achieved, it wouldn't matter if the company was perceived as ethical or unethical. QUESTION if managers totally concentrate on building a solid ethical foundation without paying equal attention to those activities aimed at achieving the bottom line Answer: then you would have a well-respected company that would eventually become financially insolvent. QUESTION 4 stages of the management continuum Answer: In stage 1, the manager's only responsibility is to the owners and stockholders of the company. Achieving the bottom-line financial goals of the company is the primary objective in this stage. In stage 2, the manager's responsibility broadens. In addition to being responsible to the company owners and stockholders, the manager is responsible for establishing and maintaining a good relationship with the company's customers and employees. To a certain extent the process of establishing and maintaining these relationships must be built upon exhibiting characteristics such as fairness, justice, trust, honesty, and must be based upon establishing and maintaining open and honest communications with both customers and employees. In stage 3, in addition to the responsibilities established in stages 1 and 2, managers take on an ethical responsibility to honor commitments to business partners, contractors, vendors, and others to whom the company has made commitments, whether written or not. In stage 4, managers also become responsible to the external community. This commitment is referred to as corporate responsibility or corporate citizenship. In this stage, managers and employees become involved in local activities in order to help improve the quality of life in the community by improving schools, parks, and even public safety. If you take a hard look at what has been laid out in the manager's continuum, you can see the development of an ethical foundation for a business that on the first stage is financially driven. The end result in stage 4 is a company that is proactive in doing what is good for its employees, owners, customers, and the community around it. Taking such a proactive approach to doing good for the many is a foundation principle of many of the philosophies that we discussed earlier in the course. QUESTION Ethics refers to principles that define behavior as all of the following, EXCEPT: