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

A multinational operates in several countries with differing cultural norms. Which is a limitation of applying a single corporate code of ethics across all of them?

A single code may be hard to apply consistently where local customs and cultural norms differ from the standards it sets, for example on gifts. This creates tension between group expectations and local practice, requiring guidance and careful implementation.

  1. AThe code may be difficult to apply consistently where local customs differ from the standards it setsCorrect
  2. BThe code will automatically become illegal in some countries
  3. CThe code will prevent the company from having any subsidiaries
  4. DThe code will stop employees communicating with each other

Explanation

Cultural differences, for example in attitudes to gift-giving, can make uniform application difficult and may cause conflict between the code and local practice. The other options are not realistic consequences of a single code.

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