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

A company has published a detailed code of ethics on its website but has done nothing else to promote it. Which action would be MOST effective in embedding the code in everyday behaviour?

The most effective action is for senior management to model the code and link it to training and appraisal. Embedding requires visible leadership and ongoing reinforcement, whereas one-off signatures, shortened versions or rare updates do not change everyday behaviour.

  1. ARequiring senior management to model the code and linking it to training and appraisalCorrect
  2. BTranslating the code into a shorter version for the annual report
  3. CAsking employees to sign the code once at recruitment only
  4. DUpdating the code every ten years

Explanation

Embedding needs visible leadership (tone at the top), training and reinforcement through performance management. A one-off signature or a published document alone does not change behaviour. Shortening or rarely updating the code does not influence daily conduct.

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