Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred? 1. Company A exhibits a higher standard of ethical behavior than does company B. 2. Company A has established objective criteria by which an employee's actions can be evaluated. 3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
A) 2 only
B) 3 only
C) 1 and 2 only
D) 2 and 3 only

Question

Quizplus · Accepted Answer

A formal corporate code of ethics provides objective criteria for evaluating employee actions, but it does not necessarily mean the company exhibits higher ethical behavior or that an audit cannot be conducted without it.

Company a Has a Formal Comprehensive Corporate Code of Ethics