What is the main purpose of a corporate code of ethics?
Correct answer: B. To guide employees' ethical conduct
- A. To replace all business laws
- B. To guide employees' ethical conduct
- C. To guarantee annual profits
- D. To determine market prices
Explanation
A code of ethics states the organisation's standards and helps employees handle ethical decisions consistently. It does not replace legal requirements or guarantee financial performance.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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