Compliance-based ethics codes focus on which two areas?
penalizing wrong-doers
defining the organization’s guiding values
creating an environment that supports shared accountability
preventing unlawful behavior by increasing control
The Correct Answer and Explanation is :
The correct answer is: preventing unlawful behavior by increasing control.
Explanation:
Compliance-based ethics codes primarily focus on ensuring that employees and organizational members adhere to laws, regulations, and internal policies. These codes are designed to establish a framework that minimizes the risk of unlawful actions or unethical behavior by increasing control within an organization.
- Preventing unlawful behavior by increasing control: A compliance-based ethics code focuses heavily on following legal and regulatory requirements. Organizations create strict rules and systems to monitor behavior, making sure employees comply with external laws (such as anti-corruption laws, labor laws, environmental regulations) and internal policies (like company codes of conduct). The intention behind this approach is to deter individuals from engaging in unlawful behavior by establishing clear rules and penalties for violations.
- Penalizing wrong-doers: While compliance-based ethics codes do include mechanisms for penalizing those who break rules, this is a result of the focus on compliance rather than a primary goal. The main purpose of compliance-based codes is to enforce adherence to laws and regulations, not just to punish wrongdoers. The punishment serves as a deterrent to prevent further misconduct.
In contrast, a values-based ethics code would focus more on defining the organization’s guiding values and creating an environment that supports shared accountability. Such codes encourage employees to make ethical decisions based on moral principles rather than on the fear of punishment.
Compliance-based codes tend to emphasize legal conformity and risk management, which means they often include a range of control mechanisms, such as internal audits, mandatory training programs, and clear procedures for reporting violations. Organizations with strong compliance ethics codes often take a defensive stance, aiming to avoid legal penalties and reputational harm by ensuring all actions align with legal requirements. This structure may limit flexibility but is effective in minimizing exposure to risks associated with non-compliance.