ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
Which feature of a whistleblowing arrangement best supports the implementation of a corporate code of ethics?
A confidential reporting channel with protection from retaliation best supports the code. Employees only raise concerns when they trust they will not suffer reprisals, whereas line-manager-only reporting, ignoring anonymous reports or penalising mistaken reports all discourage disclosure of breaches.
- AA confidential reporting channel with protection from retaliationCorrect
- BA requirement that reports be made only to the line manager
- CA rule that anonymous reports are never investigated
- DFinancial penalties for staff whose reports prove unfounded
Explanation
Staff will only report breaches if they are confident they will not suffer reprisals, so confidentiality and protection are key. Reporting only to the line manager fails if that manager is involved. Refusing anonymous reports or penalising mistaken reports discourages reporting.
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
- A manager at Corvo Co meets a sales target by pressuring staff to bend rules. The code of ethics states integrity is a core value, but bonus…
- Which of the following is the most commonly cited benefit of a corporate code of ethics for an organisation?
- A multinational adopts a single, rules-based code of ethics for all its subsidiaries. Staff in one country complain that some rules conflict…
- A company introduces a detailed rulebook stating that gifts above $50 must be refused. A manager accepts repeated gifts of $49 from the same…
- Pellam Co publishes its code of ethics on its website and in its annual report. Which benefit is MOST directly achieved by this publication?
- Zentra Co has issued a detailed code of ethics but has never trained staff on it, and managers are seen ignoring it. Which limitation of cod…