Ethical Business Conduct Policy Quiz!

1. A vendor offers to pay the costs of a Buyer's baby shower. The Buyer should:

Say that she can accept a gift only

Accept the offer since the cost will be minimal

Refuse the offer

Make sure her DMM knows about it

Answer: C. Refuse the offer No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.

Explanation

Answer: C. Refuse the offer No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.

2. A vendor from Dallas is making a visit to the corporate office. During conversation, it is noted that the Buyer is planning a trip to Dallas to visit family. The vendor offers to fly the Buyer back to Dallas on the Company plane. The Buyer should:

Decline the offer

Accept the offer since there will be no additional cost to the vendor

Offer to pay a nominal amount for the flight

Ask their DMM for their approval

Answer: A. Decline the offer No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.

Explanation

Answer: A. Decline the offer No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.

3. You own shares of Company stock in a Fidelity brokerage account, and also own additional Stein Mart shares in a Scottrade account. Stein Mart is in a blackout period, but you want to sell shares today. You can:

Sell the shares in the Scottrade account, but not the Fidelity account

Sell any shares you want to

Have your spouse sell the Scottrade shares

Not sell any shares

Answer: D. Not sell any shares During the period beginning 35 business days prior to the Company's Year End Earnings Release and 25 business days prior to each of the Company’s Quarterly Earnings Releases and continuing for 1 full business day thereafter (the “Blackout Period”) you are prohibited from making any trades in the Company’s securities unless you receive specific advance permission from the Company’s Compliance Officer. Additionally, during the period beginning 3 business days prior to the Company's monthly sales release and continuing for one (1) full day thereafter, (the “Blackout Period”) you are prohibited from making any trades in the Company's securities unless you receive specific advance permission form the Company's Compliance Officer.

Explanation

Answer: D. Not sell any shares During the period beginning 35 business days prior to the Company's Year End Earnings Release and 25 business days prior to each of the Company’s Quarterly Earnings Releases and continuing for 1 full business day thereafter (the “Blackout Period”) you are prohibited from making any trades in the Company’s securities unless you receive specific advance permission from the Company’s Compliance Officer. Additionally, during the period beginning 3 business days prior to the Company's monthly sales release and continuing for one (1) full day thereafter, (the “Blackout Period”) you are prohibited from making any trades in the Company's securities unless you receive specific advance permission form the Company's Compliance Officer.

4. If your state allows for the concealment of a firearm in a vehicle, you may not:

Bring it onto Stein Mart property

Exhibit it to someone in the parking lot

Use it for defensive purposes

Both A & B are correct

Answer: D. Both A & B are correct Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Arizona, Indiana, Kansas and Utah have passed laws that protect the right of individuals to keep licensed firearms concealed in their vehicles at their place of employment. This policy is not intended to infringe upon that right, but even in these states, associates, customers, and vendors must not exhibit their firearm on any Stein Mart property, including a parking lot, for any reason other than a lawful defensive purpose.

Explanation

Answer: D. Both A & B are correct Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Arizona, Indiana, Kansas and Utah have passed laws that protect the right of individuals to keep licensed firearms concealed in their vehicles at their place of employment. This policy is not intended to infringe upon that right, but even in these states, associates, customers, and vendors must not exhibit their firearm on any Stein Mart property, including a parking lot, for any reason other than a lawful defensive purpose.

5. Any person who violates Stein Mart's ethics policy is subject to:

Termination

Prosecution

Civil Action

All of the above

Answer: D. All of the above Any person who violates the policies set forth in the Ethical Business Policy may be subject to severe disciplinary action including, where appropriate, termination of employment. Under some circumstances, the associate may be subject to criminal prosecution or a civil action by the Company for damages or other relief.

Explanation

Answer: D. All of the above Any person who violates the policies set forth in the Ethical Business Policy may be subject to severe disciplinary action including, where appropriate, termination of employment. Under some circumstances, the associate may be subject to criminal prosecution or a civil action by the Company for damages or other relief.

6. A store General Manager's brother-in-law is a carpenter. He can:

Hire him as long as his District Director approves it

Hire him as long as the total paid to him is less than $200

Not hire him, unless approved by the Company SVP, Internal Audit, Safety & Security

Both A & B are correct

Answer: C. Not hire him, unless approved by the Company SVP, Internal Audit, Safety & Security No associate shall hire any relatives to do independent contract work or labor at their store or at the corporate office.

Explanation

Answer: C. Not hire him, unless approved by the Company SVP, Internal Audit, Safety & Security No associate shall hire any relatives to do independent contract work or labor at their store or at the corporate office.

7. The spouse of a Buyer is also a vendor rep. He sells a product that Stein Mart normally carries, but it is not sold in her department. Before he can sell to Stein Mart she should:

Make a full disclosure to the SVP, Internal Audit, Safety & Security and obtain approval

Make a full disclosure to the EVP/Chief Merchandising Officer and obtain approval

Make sure that her DMM approves

Both B & C are correct

Answer: A. Make a full disclosure to the SVP, Internal Audit, Safety & Security and obtain approval To avoid conflicts of interest and the appearance of conflicts of interest, associates shall maintain an arm’s length relationship with vendors, potential vendors, and the employees, representatives, and agents of vendors and potential vendors. This means an associate shall not be married to nor engage in a romantic, sexual, or other type of personal relationship with employees, representatives, and agents of vendors and potential vendors.

Explanation

Answer: A. Make a full disclosure to the SVP, Internal Audit, Safety & Security and obtain approval To avoid conflicts of interest and the appearance of conflicts of interest, associates shall maintain an arm’s length relationship with vendors, potential vendors, and the employees, representatives, and agents of vendors and potential vendors. This means an associate shall not be married to nor engage in a romantic, sexual, or other type of personal relationship with employees, representatives, and agents of vendors and potential vendors.

8. A store General Manager is unsure how long certain records are to be kept. She should:

Contact the Accounting Department

Ask a more senior GM

Keep the records for seven years

Both A & C are correct

Answer: A. Contact the Accounting Department Stein Mart’s financial books, records and accounts must be stored properly and retained in accordance with record retention policies. If you are uncertain as to retention periods, please contact the Company’s Accounting Department. Associates having custody of Stein Mart’s financial books, records or accounts are responsible for their security.

Explanation

Answer: A. Contact the Accounting Department Stein Mart’s financial books, records and accounts must be stored properly and retained in accordance with record retention policies. If you are uncertain as to retention periods, please contact the Company’s Accounting Department. Associates having custody of Stein Mart’s financial books, records or accounts are responsible for their security.

9. You are a general manager. You receive a telephone call from a man identifying himself as a federal investigator. He tells you that he needs the address, date of birth, and social security number for an associate that he identifies by name. You should:

Give him the information

None of the above

The answer is D. This issue is addressed in SOP No. 03-10-120, Social Security Number Protection, and SOP No. 03-40-950, Release of Information.

Explanation

The answer is D. This issue is addressed in SOP No. 03-10-120, Social Security Number Protection, and SOP No. 03-40-950, Release of Information.

10. A vendor invites a Buyer and their family to use a private beach club once a month, at no cost to either the Buyer or Vendor. The Buyer can:

Accept the offer since it involves no cost to the vendor

Decline the offer

Accept the offer, but limit the number of times of use and notify the SVP, Internal Audit, Safety & Security

Accept the offer, but offer to pay a nominal amount

Answer: C. Accept the offer, but limit the number of times of use and notify the SVP Internal Audit, Safety & Security No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.

Explanation

Answer: C. Accept the offer, but limit the number of times of use and notify the SVP Internal Audit, Safety & Security No associate or relative, friend, or partner of an associate shall request or accept any money, lavish or excessive hospitality, free or discounted services or use of facilities, loans or any gifts or favors having more than a nominal value (i.e., $50) from any supplier, customer or competitor of the Company or any other party doing or seeking to do business with the Company.