What is the primary purpose of an organizational code of ethics?

• A. It helps meet legal labor and environmental requirements
• B. It serves as a safety check for evaluating decisions before implementation
• C. It answers investor needs for accountability
• D. It is a marketing technique to attract socially conscious consumers

Answer: (B)

A code of ethics provides a framework for ethical decision-making within an organization. It helps employees and managers evaluate potential actions before they are carried out, checking whether they align with values like integrity, fairness, and respect. In busy or pressured situations, referring to the code acts as a safety check to prevent unethical or harmful choices from moving forward. While it can support legal compliance, investor trust, and a positive public image, those are secondary outcomes; the central aim is to guide decisions so they reflect the organization’s ethical standards.