8. CIC 35, 26: Ethics, Marketing, Promotion, Publicity, Production Of Presented Materials Flashcards
(63 cards)
In the meetings industry, one group has evolved and with that so have ethical questions about how that group receives payment for services rendered. Which group has unique ethical questions about how their fees are generated?
a. hoteliers
b. caterers
c. convention center managers
d. third party providers
e. in-house meeting managers
d (p. 596)
Whistle-blowers are protected by federal law from retaliation by their employers if they work for which of the following?
a. publicly held corporations
b. non-profit associations
c. government agencies
d. all of the above
e. none of the above
d (p. 598) Note: The text doesn’t mention government agencies. Fourteen Acts protect whistle blowers in the U.S.; for more information go to: http://www.dol.gov/compliance/guide/whistle.htm
Which of the following are parameters for selection of members for an independent audit committee?
a. the committee members cannot be part of the organization’s management
b. the committee members cannot be paid by the organization for other professional services
c. the committee members cannot be professional auditors
d. a and b are true
e. c and b are true
a (p. 598)
Fair and equitable business practices related to third party meeting management agents include all but which one of the following?
a. The third-party agent may alter the RFP to help a specific bidding party win the bidding process.
b. The third-party agent should not take incentives meant for the end user.
c. The end user has the right to determine how much contact the end user will have with hotels and other venues.
d. The hotel should not contact the end user directly once the third-party agent has initiated the bidding process for hotel selection.
e. All fees should be disclosed by all parties as part of the RFP process.
a (p. 597)
CVBs are often scrutinized by the media and government agencies, primarily because of which of the following issues?
a. they often behave unethically
b. they are typically reticent to fully disclose how they generate income
c. they are for-profit entities and therefore suspect
d. they represent a destination
e. they are often at least partially supported by tax dollars
e. they are often at least partially supported by tax dollars
39-05: e (p. 593)
When a professional believes and has evidence that a crime has been (or is being) committed by co-workers and/or supervisors, and that person reports the act to someone in authority, that is known as which of the following?
a. a crime
b. whistle blowing
c. auditing
d. unethical
e. a conflict of interest
b (p. 592)
To avoid ethical problems, many organizations have policies that control the receipt of gifts, including which of the following?
a. limits may be placed on the monetary value of acceptable gifts
b. gifts received become organization property, rather than personal property
c. gifts may be prohibited entirely
d. gifts are acceptable as long as a gift of equal value is offered by the individual recipient
e. gifts are acceptable as long as the recipient isn’t the one making decisions
a, b, c (p. 595)
Areas that often create ethical dilemmas for the meetings industry include which of the following?
a. gifts
b. lawyers
c. fam trips
d. disclosure
e. loyalty programs
a, c, d, e (p. 593-596)
According to the best practices suggested by PCMA’s Task Force on Third-Party Issues, hotels have an obligation to disclose any and all third-party fees generated by increased pricing to end-users, including which of the following fees?
a. rebates
b. commissions
c. incentives
d. loyalty awards
e. overrides
a, b, c, d, e (p. 596) Note: Item “d” may seem to be incorrect, but if loyalty awards given to a third-party are covered by increased pricing, that would also qualify as a “fee” in need of disclosure.
If a convention center’s rental fee is being covered by a charge added to all hotel room-nights attributed to the host organization renting that center, who is responsible for disclosing this arrangement to the host organization?
a. CVB representatives
b. hotels
c. any third-party providers associated with the arrangement
d. convention center
e. meeting attendees
a, b, c, d (p. 596)
If a third-party meeting management company is approached by an organization to select an appropriate meeting site, what obligation does the third-party have to disclose the name and other pertinent information about the host organization to potential sites?
a. absolutely none
b. legally, the name must be disclosed, but nothing else
c. full disclosure of the name and known information should occur before the site is obligated to hold space
d. full disclosure should occur once the space is held by contract
e. full disclosure should occur after the event is held
c (p. 597)
The main provisions of SOX include which of the following?
a. executives must certify financial statements
b. insider loans are prohibited
c. destroying documents that can potentially injure the company is allowed
d. altering documents that can potentially injure an association is prohibited
e. the official auditing company cannot simultaneously provide other professional services to a publicly held company
a, b, d, e (p. 598)
Establishing a code of ethics is mandated by law for all corporations and associations.
False (p. 592)
Moral standards vary from person to person and may be quite different for people from different generations or different parts of the world.
39-14: True (p. 592)
According to the text, over half of the workers in the U.S. have observed unethical behavior in the workplace and the vast majority of those have reported it to someone in authority.
False (p. 592)
Allegations can have as devastating an effect on corporations or associations as begin found guilty of inappropriate or unethical behavior.
True - p 593
Unethical behavior is illegal.
False (p. 592-593, 597)
Points earned at hotels for frequent or lengthy stays, and frequent flyer miles, are legally the possession of the person staying at the hotel or flying.
False (p. 595)
A __________ trip is an opportunity for qualified meeting managers to view a property or destination in person to determine if the venue is appropriate for their meetings or events in the future.
familiarization (or “fam”) (p. 594)
A __________ program is an “award” system for accumulating points or miles that can be applied towards future room nights or airline tickets.
loyalty (p. 595)
A gift given just before an important decision is expected from the gift recipient is typically considered a ___________.
bribe (p. 595)
Federal law established in 2002, known as the __________ - __________ Act, makes corporate accountability mandatory for public corporations, and covers non-profit associations up to a point.
Sarbanes-Oxley (p. 598)
When a person has a professional relationship with one organization and is approached by a competing organization for services, the potential for unethical behavior is present and this situation could be perceived as a __________ __________ __________.
conflict of interest (p. 599)
One recommendation for non-profit organizations to avoid accusations of unethical behavior is to perform an annual __________ of their finances.
audit
