What does a code of ethics serve as in an organization?

Prepare for the Western Governors University (WGU) HRM5010 C202 Test. Utilize flashcards and multiple-choice questions with hints and explanations to ensure you are well-equipped for your exam!

A code of ethics serves as a decision-making guide for ethical values within an organization by establishing a framework for acceptable behavior and guiding employees in navigating ethical dilemmas. It outlines the organization's core values, principles, and expectations regarding the conduct of employees, helping them to make choices that align with both the organization's standards and societal norms. This guidance is crucial in fostering a culture of integrity, transparency, and respect, as it provides clarity on what is deemed appropriate behavior in various situations.

In a workplace, having a strong code of ethics helps ensure that employees understand how to handle conflicts of interest, confidentiality issues, and interactions with colleagues and clients. It promotes accountability and empowers employees to take responsibility for their actions, which is essential for maintaining trust both within the organization and with external stakeholders. By clearly articulating ethical standards, organizations can minimize unethical behavior and enhance their reputation.

The other options do not accurately reflect the function of a code of ethics. It is not specifically a guideline for promotions, a financial report, or a technical training manual, but rather a comprehensive framework aimed at guiding ethical decision-making across the organization.

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