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ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics

A board wants to assess whether its code of ethics is genuinely embedded rather than just communicated. Which indicator would provide the MOST reliable evidence?

Anonymous culture surveys, analysis of speak-up reports and the consistency of discipline for breaches, taken together, give the most reliable evidence of embedding. They show real attitudes and behaviour, unlike signed declarations or code length, which only reflect formal communication.

  1. AThe number of employees who have signed a declaration that they have read the code
  2. BResults of anonymous culture surveys, analysis of speak-up reports and how breaches were disciplined, considered togetherCorrect
  3. CThe length and detail of the written code compared with competitors' codes

Explanation

Embedding concerns actual attitudes and behaviour. Anonymous surveys, reporting patterns and consistent discipline together show whether staff believe in and apply the code. Signed declarations show only awareness or compliance on paper, and a long code says nothing about practice.

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