ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following is an example of a company going beyond a purely legal approach to ethics by establishing an internal measure to embed ethical behaviour?
Adopting a code of ethics with a confidential reporting channel is the example. It is a voluntary internal measure that builds an ethical culture and lets staff raise concerns safely, whereas paying tax, filing statements and meeting minimum wage rules are simply legal compliance.
- APaying corporation tax by the legal deadline
- BAdopting a code of ethics with a confidential reporting channel for staff concernsCorrect
- CFiling the statutory annual financial statements
- DComplying with minimum wage legislation
Explanation
A code of ethics with a confidential reporting line is a voluntary internal control that promotes ethical culture. The other options are legal obligations that any company must meet, so they show compliance rather than an ethics-based initiative.
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