Which of the following functions does a code of ethics perform?
A)It clarifies an organization's cornerstones to its employees, managers, and stakeholders.
B)It allows the board members of an organization to be accountable only to themselves.
C)It allows chief executive officers unrestrained power in the decision-making process.
D)It works with the standards of corporate governance to limit employees' independence.

Question

Quizplus · Accepted Answer

A code of ethics clarifies an organization's values, principles, and standards of behavior to its employees, managers, and stakeholders. It helps to create a shared understanding of the organization's identity and purpose. It also provides guidance on ethical decision-making and behavior, which can help to create a more positive organizational culture. B, C, and D are incorrect because they promote unethical practices and contradict the purpose of a code of ethics.

Which of the Following Functions Does a Code of Ethics