Corporate codes of conduct go beyond what the law requires, imposing higher standards of honesty and fairness.

Question

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To go beyond the minimum acceptable standard codified in law, many organizations have explicit codes of conduct. These codes go above and beyond the law in detailing how the organization expects an employee to behave and to represent the company in business dealings. Codes of conduct allow an organization to overcome moral hazards and adverse selections as they attempt to resonate with employees' deeper values of justice, fairness, honesty, integrity, and reciprocity.

Corporate Codes of Conduct Go Beyond What the Law Requires