alleryStart learning →Under what condition is a code of ethics likely to change behavior?
AWhen senior management abides by it and stresses it
BWhen it is longer than the codes of rival firms
CWhen it is written by an outside consultant
DWhen it is reviewed by the shareholders yearly
Answer & Solution
Correct answer: A. When senior management abides by it and stresses it
1. Opinion is divided on whether codes make employees behave more ethically.
2. Some regard them as little more than public relations gimmicks.
3. If senior management abides by the code and regularly emphasizes it to employees, it will likely have a positive influence on behavior.
4. The condition is therefore about leadership conduct, not about the document itself.
5. Length and authorship do not make a code effective, since employees take their cue from what leaders do.
6. Shareholder review is nowhere given as what makes a code work.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.2 Establishing a Formal Code of Ethics_
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