What do we call the principles of conduct that guide decision-making and behavior within an organization?

What do we call the principles of conduct that guide decision-making and behavior within an organization?

• A. Mission Statement
• B. Corporate Governance
• C. Code of Ethics
• D. Corporate Culture

Answer: (C)

The principles of conduct that guide decision-making and behavior within an organization are referred to as a Code of Ethics. A Code of Ethics is a formal document that outlines an organization’s values, principles, and guidelines for ethical behavior. It serves to help employees understand what is expected of them in terms of integrity, professionalism, and compliance with laws and regulations. The Code of Ethics provides a framework for decision-making, helping individuals to navigate complex situations where moral considerations are important. It can promote a positive organization culture, enhance accountability, and ensure that all employees align with the organization's mission and goals. In contrast, a mission statement generally outlines the organization’s purpose and objectives rather than specific ethical guidelines. Corporate governance refers to the systems and processes that direct and control an organization, focusing on the relationships among various stakeholders but not necessarily providing ethical guidance. Corporate culture encompasses the shared values, beliefs, and norms within the organization, which can influence behavior but does not specifically codify them as a Code of Ethics does.

The principles of conduct that guide decision-making and behavior within an organization are referred to as a Code of Ethics. A Code of Ethics is a formal document that outlines an organization’s values, principles, and guidelines for ethical behavior. It serves to help employees understand what is expected of them in terms of integrity, professionalism, and compliance with laws and regulations.

The Code of Ethics provides a framework for decision-making, helping individuals to navigate complex situations where moral considerations are important. It can promote a positive organization culture, enhance accountability, and ensure that all employees align with the organization's mission and goals.

In contrast, a mission statement generally outlines the organization’s purpose and objectives rather than specific ethical guidelines. Corporate governance refers to the systems and processes that direct and control an organization, focusing on the relationships among various stakeholders but not necessarily providing ethical guidance. Corporate culture encompasses the shared values, beliefs, and norms within the organization, which can influence behavior but does not specifically codify them as a Code of Ethics does.