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

Zentra Ltd has a detailed code of ethics, but employees receive it once at joining and management never refers to it afterwards. Which limitation of codes of ethics does this MOST clearly illustrate?

The scenario shows that a code which is not embedded, communicated and reinforced by management tends to be ignored and becomes a formality. Its effectiveness depends on ongoing training and visible commitment, not just on having a document.

  1. AA code is too short to cover any ethical issues
  2. BA code that is not embedded or reinforced is likely to be ignored and become a mere formalityCorrect
  3. CA code always conflicts with the fundamental principles of ACCA
  4. DA code can only be written by external regulators

Explanation

Without ongoing communication, training and visible management commitment, a code becomes a paper exercise with little effect on behaviour. The scenario says nothing about the code's length, ACCA conflicts, or authorship, so the other options do not fit.

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