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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

Which feature most strongly indicates that a code of ethics is actually shaping an organisation's ethical culture rather than being a mere formality?

A code shapes ethical culture when senior management visibly follows it and breaches are handled consistently at every level. Mere display, outside drafting or one-time circulation does not change behaviour, because employees judge sincerity by leadership conduct and enforcement rather than by the document itself.

  1. AIt is framed and displayed in the reception area
  2. BTop management follows it visibly and breaches are dealt with consistently at all levelsCorrect
  3. CIt is drafted by an external consultant in legal language
  4. DIt is circulated to employees only at the time of joining

Explanation

Ethical culture depends on tone at the top and consistent enforcement. Display, external drafting or one-time circulation do not ensure that the code influences behaviour. If senior people are exempt from sanctions, employees treat the code as window dressing.

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