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

A manufacturing company has issued a written code of ethics. Which of the following is the most effective first step in embedding the code in the organisation's day-to-day behaviour?

The most effective first step is for senior management to follow the code visibly and communicate its importance. Tone from the top shows employees that ethical behaviour is genuinely expected, whereas merely publishing or storing the code passively does little to change behaviour.

  1. ASenior management visibly following the code and communicating its importanceCorrect
  2. BPrinting the code in the annual report only
  3. CLeaving the code to be discovered by staff on the intranet
  4. DReviewing the code only when a breach occurs

Explanation

Embedding depends on tone from the top. When senior managers demonstrate and promote the code, employees see it as genuinely expected behaviour. Passive publication, as in the other options, does not change behaviour.

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