Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

A) Their codes typically don't cover high risk issues.
B) Their codes are typically written by consultants outside the firm.
C) Their codes are typically not integrated into daily decision making.
D) Their codes are written with no input from employees or customers.
E) Their codes are mandated by regulation rather than originating from within the firm.

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Khizra Saleem · Accepted Answer

Final Answer : C, Explanation :  Codes of ethics or compliance programs often fail to prevent ethical problems because they are not effectively integrated into the daily decision-making processes of the organization. This means that even though a company may have a set of guidelines or rules, if these are not actively considered and applied in the routine choices and actions of employees, they can become ineffective at guiding behavior in a way that prevents ethical issues.

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