ACCA Applied Knowledge · Business and Technology · Governance in business organisations
Which of the following is the best example of a business ethics code being used to support ethical behaviour within an organisation?
A confidential whistleblowing procedure is the best example. It supports a code of ethics by giving staff a safe route to report suspected malpractice without fear of reprisal, whereas dividend changes and production scheduling are financial or operational matters.
- AA whistleblowing procedure that lets staff report suspected malpractice confidentially without fear of reprisalCorrect
- BA rise in the dividend paid to shareholders after a profitable year
- CA new production schedule designed to reduce manufacturing time
Explanation
Ethical policies are supported by mechanisms such as confidential whistleblowing procedures that allow concerns to be raised safely. Dividend increases and production scheduling are financial and operational decisions and do not directly promote ethical conduct.
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