Which of the following statements about a code of ethics is most true?
a. A code of ethics is rarely a written document but instead an informal understanding between people who work for a particular organization.
b. Most codes of ethics offer guidance on how to treat stakeholders.
c. The purpose of a code of ethics is to keep top management out of jail.
d. Codes of ethics typically prohibit bribes unless it is the accepted way of doing business in a foreign country.
e. Workforce diversity is not covered in a code of ethics; instead it is usually covered in a separate diversity code.
b. Most codes of ethics offer guidance on how to treat stakeholders.
A code of ethics consists of a formal written set of ethical standards guiding an organization’s actions. Most codes offer guidance on how to treat customers, suppliers, competitors, and other stakeholders. The purpose is to clearly state top management’s expectations for all employees. Most codes prohibit bribes.
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