A. The absence of a formal corporate code of ethics in company B would not prevent a successful audit of ethical behavior in that company. Standards which would influence individual actions can be documented in places other than in a corporate code of ethics. For example, there may be defined policies regarding purchasing activities that may serve the same purpose as a code of ethics. These policies also serve as criteria against which activities may be evaluated.
B. A formalized corporate code of ethics presents objective criteria by which actions can be evaluated and would thus serve as criteria against which activities could be evaluated. The existence of a corporate code of ethics, by itself, does not ensure higher standards of ethical behavior. It must be complemented by follow-up policies and monitoring activities to ensure adherence to the code. Standards which would influence individual actions can occur in other places than the corporate code of ethics. For example, there may be defined policies regarding purchasing activities that may serve the same purpose as a code of ethics. These policies also serve as criteria against which activities may be evaluated.
C. Standards which would influence individual actions can be documented in places other than in a corporate code of ethics. For example, there may be defined policies regarding purchasing activities that may serve the same purpose as a code of ethics. These policies also serve as criteria against which activities may be evaluated.
D. The existence of a corporate code of ethics, by itself, does not ensure higher standards of ethical behavior. It must be complemented by follow-up policies and monitoring activities to ensure adherence to the code.
