ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
Which of the following is the best way for an organisation to assess whether its code of ethics is actually embedded?
The best way is monitoring through staff surveys, analysis of concerns raised and periodic compliance reviews. These measure actual attitudes and behaviour, whereas counting printed copies or confirming the code exists shows only that it was issued, and regulator action is purely reactive.
- AMonitoring through staff surveys, analysis of reported concerns and periodic review of complianceCorrect
- BCounting the number of copies of the code printed
- CAsking directors to confirm that the code exists
- DWaiting until a regulator investigates the company
Explanation
Embedding is judged by behaviour and attitudes, which surveys, reported concerns and compliance reviews reveal. Counting copies or confirming existence shows only that the code exists, and waiting for a regulator is reactive.
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