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ACCA Applied Knowledge · Business and Technology · Corporate codes of ethics

Zentra Co has issued a detailed code of ethics but has never trained staff on it, and managers are seen ignoring it. Which limitation of codes of ethics does this best illustrate?

The scenario shows that a code is only effective if it is embedded in the organisation's culture and visibly supported by management. Without training and with managers ignoring it, the code becomes a paper exercise that does not influence behaviour.

  1. AA code is only effective if it is embedded in the culture and supported by management behaviourCorrect
  2. BA code of ethics is always too detailed to be understood by employees
  3. CA code of ethics can only apply to the directors of a company

Explanation

Where managers ignore the code and no training exists, the code is just a document. Its effectiveness depends on commitment from leaders and integration into culture. Codes are not always too detailed, and they apply to all staff, not only directors.

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