115 CFA
File: Reading 1 - Ethics and Trust - LOS f. challenges to ethical behavior

f. identify challenges to ethical behavior

Command word

  • Identify: To recognize and correctly name
    • Identify and describe the desirable properties of an estimator
    • Identify the functions of a central bank

Flash cards

Name the two challenges to ethical behavior
1. The overconfidence bias
2. Situational influences

Why can overconfidence bias be a challenge to ethical behavior?
Overconfidence bias is a challenge to ethical behavior because we assume we are good people and sometimes make decisions based on our own moral compass without serious ethical reflection.

Why can situational influences be a challenge to ethical conduct?
Situational influences can motivate people to act in their short-term interests without recognizing the long-term risks or consequences for themselves or others.

What are some potentially bad situational influences?
Financial rewards, prestige, and loyalty to an employer and colleagues.

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