ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics
Which statement best describes a rules-based approach to ethics in a corporate code of conduct?
A rules-based approach sets out specific, detailed requirements and prohibitions that employees must follow. It gives clear instructions on what is allowed. This contrasts with a principles-based approach, which relies on broad values and the exercise of judgement in each situation.
- AIt sets out specific, detailed requirements and prohibitions that employees must followCorrect
- BIt relies on broad values and expects individuals to use professional judgement in each situation
- CIt leaves ethical decisions entirely to the board of directors
- DIt applies only to external auditors and not to employees
Explanation
A rules-based approach lays down specific, detailed requirements and prohibitions, giving employees clear instructions. The principles-based approach instead uses broad values and judgement, which is why the second option is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Corporate codes of ethics shows your real accuracy, how long you take and where you lose marks.
More Corporate codes of ethics questions
- A company's code of ethics states that integrity is a core value, but managers' bonuses depend solely on meeting quarterly profit targets, a…
- A manager at Corvo Co meets a sales target by pressuring staff to bend rules. The code of ethics states integrity is a core value, but bonus…
- Which of the following is the most commonly cited benefit of a corporate code of ethics for an organisation?
- Which feature of a whistleblowing arrangement best supports the implementation of a corporate code of ethics?
- A multinational adopts a single, rules-based code of ethics for all its subsidiaries. Staff in one country complain that some rules conflict…
- A company introduces a detailed rulebook stating that gifts above $50 must be refused. A manager accepts repeated gifts of $49 from the same…