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

Zentra Ltd is drafting a code of ethics. The board wants employees to know what to do if they suspect wrongdoing by a colleague. Which content should the board include to achieve this?

The board should include a whistleblowing procedure that explains how and to whom concerns about suspected wrongdoing can be reported, ideally with protection from retaliation. Sales targets and shareholder lists say nothing about how staff should act on suspected misconduct.

  1. AA statement of the company's annual sales targets
  2. BA whistleblowing procedure explaining how and to whom concerns can be reportedCorrect
  3. CA list of the shareholders who own more than 5% of the shares

Explanation

A whistleblowing or reporting procedure tells staff how to raise concerns, usually with protection from reprisal. Sales targets and shareholder lists do not help employees handle suspected wrongdoing.

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