The Litmus Test of a Company's Code of Ethics Is

question 67

Multiple Choice

The litmus test of a company's code of ethics is

• A)the degree to which it is connected to a company's statement of core values.
• B)the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business.
• C)the extent to which a company's approach to ethical behavior mirrors the ethical principles for society at large.
• D)based on the rules a company's top management and board of directors make about "what is right" and "what is wrong."
• E)determined by the ethical behaviors expected of company personnel in the course of doing their jobs.

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Definitions:

Top Executives

The highest-ranking officials in an organization, responsible for strategizing, decision-making, and overseeing the operational activities.

Lewin's Model

A conceptual model for organizational change that involves three stages: Unfreezing, Changing, and Refreezing, developed by Kurt Lewin.

Hyper-Turbulent Environments

Highly dynamic and rapidly changing conditions in which businesses operate, characterized by uncertainty and unpredictability.

Paralyzed

Describes a state of inability to act or move, often due to fear, shock, or as a result of a physical condition affecting mobility.