ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
A manufacturer's code of ethics prohibits accepting gifts from suppliers. Staff are aware of it, but several have admitted they fear being victimised if they report a colleague who breaks the rule. Which measure would BEST address this weakness in implementation?
A confidential whistleblowing channel with protection for good-faith reporters best addresses the weakness. The issue is fear of victimisation, which stops breaches being reported. Re-reading the code or relaxing the gift rule does nothing to remove that fear.
- AIntroducing a confidential whistleblowing channel with a clear policy protecting those who report in good faithCorrect
- BIncreasing the value of gifts that staff are allowed to accept
- CRequiring staff to re-read the code each year
Explanation
The problem is fear of retaliation, which discourages reporting. A confidential channel with protection for good-faith reporters tackles this directly. Raising the gift limit changes the rule rather than helping enforcement. Re-reading the code does not remove the fear of victimisation.
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