Which of the Following Should Be Done for Constructing an Effective

question 20

Multiple Choice

Which of the following should be done for constructing an effective ethics code?

• A)Keep it complex, formal, and rigid so that employees realize how serious it is.
• B)Make it as catchy and clever as possible.
• C)Involve only the legal department and top executives in writing the statement.
• D)Let the employees construct the ethics code according to their ideologies.
• E)Focus on real-life situations that employees can relate to.

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Definitions:

Price Leadership

A situation where one company in an industry sets the price for its products, and other companies in the industry follow suit, often due to the dominance of the leading company.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between firms, to deceive or defraud others, restrict competition, or fix prices.

Price Leadership Model

A market structure where one leading firm sets the price for its product and the other firms in the market follow suit, adjusting their prices accordingly.