Question

______ is a set of principles and expectations that are considered binding on any person who is member of particular group

• A. Code of conduct
• B. Code of ethics
• C. Code of practice
• D. Any of the above

Answer 1

Answer: (A)

Code of conduct

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.

The code of ethics outlines a set of fundamental principles which could be used as the basis for operational requirements (things one must do), operational prohibitions (things one must not do). It is based on a set of core principles and values and is by no means designed for convenience. The employees subjected to the code are required to understand, internalize, and apply it to situations which the code does not specifically address. Organizations expect that the principles, once communicated and illustrated, will be applied in every case, and that failure to do so may lead to disciplinary action.