ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
How can a corporate code of ethics help an organisation in relation to its stakeholders?
A code shows stakeholders the standards of conduct the organisation commits to, which can build trust and confidence in it. It does not remove the need to consider stakeholder interests or guarantee that stakeholders agree with its decisions.
- AIt shows stakeholders the standards the organisation commits to, which can build trustCorrect
- BIt removes the organisation's need to consider stakeholder interests
- CIt ensures all stakeholders agree with every business decision
Explanation
Publishing a code signals commitment to standards, helping build trust with customers, suppliers, investors and others. It does not remove the need to consider stakeholders, nor ensure agreement with decisions.
Did you get it right without looking?
One question tells you little. A timed set on Corporate codes of ethics shows your real accuracy, how long you take and where you lose marks.
More Corporate codes of ethics questions
- Which of the following is the best way for an organisation to assess whether its code of ethics is actually embedded?
- Dana, an accountant, is told by a colleague that a particular transaction is not specifically banned by the company's ethics manual, so it m…
- Which of the following is an advantage of a rules-based approach compared with a principles-based approach?
- Which of the following is most likely to be included as a stated aim in a corporate code of ethics dealing with whistleblowing?
- Which approach to a code of ethics is most likely to encourage employees to follow it because they believe in it, rather than only to avoid …
- Zentra Ltd issued a detailed code of ethics but senior managers regularly ignore it when targets are at risk, and no one has ever been disci…