Asked by Camay Bhakoo on May 11, 2024

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One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization. ​

Code of Conduct

A set of guidelines designed to outline acceptable behaviors and ethical standards for members of an organization or profession.

U.S. Sentencing Commission

An independent agency of the federal judiciary responsible for establishing sentencing policies and practices for the federal courts, including guidelines for corporate crimes.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract.

  • Recognize the value of ethical compliance programs in averting and discovering corporate infractions.
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Verified Answer

GQ
Guillermo QuintanillaMay 18, 2024
Final Answer :
True
Explanation :
This is a true statement according to the guidelines provided by the U.S. Sentencing Commission for companies to demonstrate due diligence. A code of conduct is an important tool for communicating ethical standards and identifying risk areas for the organization.