Question

Which of the following is a reason to periodically update a code of ethics document?

1) It signals that you care about ethics to internal and external stakeholders.
2) It allows you to capture the evolving nature of the ethical risks of the product or service that you are developing.
3) It reinforces the presence of the code of ethics in the minds of the employees.
4) It is a fiduciary and regulatory responsibility for the organization to do so.

Answer 1

Periodically updating a code of ethics is crucial for signaling commitment to ethics, adapting to evolving ethical risks, reinforcing employee awareness, and fulfilling fiduciary and regulatory responsibilities.

Step-by-step explanation:

Periodically updating a code of ethics document is important for several reasons:

1. It signals that you care about ethics to internal and external stakeholders. By updating the code of ethics, you demonstrate a commitment to ethical conduct and show that you take ethics seriously as a company.
2. It allows you to capture the evolving nature of the ethical risks of the product or service that you are developing. As new technologies and changes to the business environment emerge, the potential ethical risks may also change. Updating the code of ethics helps you address these new risks in a proactive manner.
3. It reinforces the presence of the code of ethics in the minds of the employees. By periodically updating the code of ethics, employees are reminded of its importance and are more likely to adhere to its principles.
4. It is a fiduciary and regulatory responsibility for the organization to do so. Organizations are legally obligated to have and maintain a code of ethics as part of their corporate governance.