A code of ethics is an important document for organizational conduct.In response to the Sarbanes-Oxley Act in the United States,the SEC requires which of the following actions for organizations that have not adopted a code of ethics?
A)explanation of why it has not done so
B)disclosure of actions undertaken to prevent and detect fraud
C)disclosure of all related parties in management and discussion documents
D)a cost-benefit analysis for immediate implementation of one

Question

Quizplus · Accepted Answer

The SEC requires organizations that have not adopted a code of ethics to provide an explanation of why they have not done so. This is to promote transparency and accountability in organizational conduct, especially in light of past financial scandals that highlighted the need for ethical guidelines.

A Code of Ethics Is an Important Document for Organizational