Walter Warburg & Co., a new investment banking firm, has dismissed the idea of establishing a code of ethics for its employees. Which of the following consequences is most likely to take place as a result of this decision?
A)It can now clearly state policies for behavior in specific situations.
B)It can capture distinctly what the organization understands ethical behavior to mean.
C)It will not be allowed to operate, as having a written code of ethics is mandatory in every organization.
D)It cannot document punishments for the violation of ethical policies.

Question

Quizplus · Accepted Answer

By not establishing a code of ethics, Walter Warburg & Co. will not be able to document punishments for the violation of ethical policies. However, having a written code of ethics is not mandatory in every organization. Options A and B are benefits of having a code of ethics, which will not be applicable in this case.