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

Which of the following is a benefit of a corporate code of ethics?

A key benefit of a corporate code of ethics is that it sets out the standards of behaviour the organisation expects, giving employees a clear reference point. It cannot guarantee ethical conduct or replace laws, which remain separately binding on the business.

  1. AIt guarantees that no employee will ever act unethically
  2. BIt sets out the standards of behaviour expected, giving staff a clear reference pointCorrect
  3. CIt replaces the need for laws and regulations governing the business

Explanation

A code communicates expected standards and gives employees guidance when facing decisions. It cannot guarantee ethical behaviour, because individuals may ignore it, and it does not replace legal requirements.

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