ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
Karnak Ltd's code of ethics states that employees must not accept gifts from suppliers worth more than a nominal amount and must report any gift received. Which content area of a typical code does this provision address?
The provision addresses bribery and conflicts of interest. Limiting and reporting supplier gifts prevents employees' judgement from being improperly influenced, which is a standard area covered by corporate codes of ethics. It is not about dividends, pricing or customer segmentation.
- ADividend policy
- BBribery and conflicts of interestCorrect
- CProduct pricing strategy
- DCustomer segmentation
Explanation
Rules on accepting gifts and hospitality from suppliers are typical code provisions on bribery, corruption and conflicts of interest, since gifts may influence business decisions. Dividend policy, pricing and segmentation are commercial matters, not ethical conduct rules.
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