Known as compliance-based ethic codes these ethical standards emphasize preventing unlawful behaviour by increasing control and by penalizing wrongdoers.
Compliance-based ethical codes are those that outline moral requirements with an emphasis on preventing unethical activity by tightening regulations and punishing offenders. Integrity-based ethical codes are those that specify an organization's guiding principles and foster a culture that encourages moral behavior. A compliance-based code of ethics is created to ensure that the company and its personnel abide by all rules and regulations properly. The prevention, detection, and punishment of non-compliant conduct are three important components. For instance, Jeremy's compliance-based code might forbid his employees from materially misrepresenting the truth when acting in the course of their job.
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