Question

While speaking with your sales team, your manager explains, "Anyone caught breaking a sales law will be fired." After reading about business ethics, you quickly identify this remark as a reference to the firm’s ________ ethics.
A) technology-based
B) personal responsibility-based
C) compliance-based
D) integrity-based

Answer 1

Answer:

Compliance-based

Explanation:

In compliance-based ethics, a code is developed to ensure compliance of the business and its employees with governing laws and regulations appropriately.  This method uses prevention, detection and punishment of non-complaint behaviors. This kind of code unlike the integrity-based ethical approach, does not support employee autonomy. Strict rules are followed in this ethical approach and an emphasis on not breaking rules is made.

For example, a member of staff who had a thought of  breaking a few rules to achieve his target at work, remembering the code given in the compliance-based ethical management system, will refrain from it, fearing punishment.

Answer 2

Answer:

The correct answer is letter "C": compliance-based.

Explanation:

Compliance-based ethical companies are those with strict regulations and practices to ensure employees are compliant with the organization's laws. These type of companies tend to have methods to prevent, detect and punish unethical employee behavior that tends to be in most cases unflexible. The main objective of carrying out such practices is to spot behavioral weaknesses on time for the overall good of the company in the long term.