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

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 punishment?

Involving employees in developing the code and discussing how its values apply to their roles encourages genuine commitment. Participation creates ownership and understanding, whereas penalty lists or unexplained directives promote only compliance driven by fear of punishment.

  1. AInvolving employees in developing the code and discussing how its values apply to their workCorrect
  2. BListing detailed penalties for each possible breach
  3. CIssuing the code to staff without explanation to avoid debate

Explanation

Participation builds ownership and shared understanding, which encourages commitment to the values themselves. A penalty-focused rules approach relies on compliance through fear, and issuing the code without explanation gives staff no reason to buy in.

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