ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
Which of the following is the most commonly cited benefit of a corporate code of ethics for an organisation?
A key benefit of a corporate code of ethics is that it sets out clear expected standards of behaviour, so employees have guidance and make consistent decisions. It does not guarantee ethical conduct or replace controls or legal compliance.
- AIt guarantees that no employee will ever behave unethically
- BIt sets out clear expected standards of behaviour, helping employees make consistent decisionsCorrect
- CIt removes the need for internal controls and supervision
- DIt replaces the need to comply with laws and regulations
Explanation
A code communicates the standards the organisation expects, which promotes consistency in behaviour and decision making. It cannot guarantee ethical conduct, does not replace internal controls, and does not override legal compliance.
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