Question

Codes of conduct and codes of ethics ___________.

• A. are formal statements that describe what an organization expects of its employees
• B. become necessary only after a company has been in legal trouble
• C. are designed for top executives and managers and not for regular employees
• D. rarely become an effective component of the ethics and compliance program

Answer 1

The correct option is A are formal statements that describe what an organization expects of its employees

A corporate code of conduct may be defined as a document containing the core values and moral principles which all those working in the company are expected to follow in the course of their duties as well as in their daily activities. It reflects commitment of the company to ensure ethical behavior on the part, of its members. It also indicates how an employee should act in general or in specific situations. A code of conduct lays down 'do’s' and `don'ts'. It describes socially acceptable and responsible behavior. Hence, a code of ethics is a tangible guide to ethically desirable behavior.

The Code of conduct or what is popularly known as the Code of Business Conduct contains standards of business conduct that must guide actions of the Board of Directors and senior management of the company.