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

Pellam Co publishes its code of ethics on its website and in its annual report. Which benefit is MOST directly achieved by this publication?

Publishing the code mainly improves reputation and builds stakeholder trust, because it shows externally that the company is committed to ethical conduct. It does not remove whistleblowing needs, prevent litigation or change tax obligations.

  1. AIt improves reputation and builds trust with external stakeholders by showing commitment to ethical conductCorrect
  2. BIt eliminates the need for whistleblowing procedures
  3. CIt ensures the company will not face legal action
  4. DIt allows the company to avoid paying tax

Explanation

Publishing a code signals the organisation's values to customers, investors and others, supporting reputation and trust. It does not remove the need for whistleblowing channels, prevent legal action or affect tax.

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