Future Business Leaders of America (FBLA) Business Management Practice Test

What is a common misconception about a business code of ethics?

1. It's a formal written document

2. It's a set of unspoken workplace guidelines

3. It guarantees proper behavior

4. It applies only to larger companies

The correct answer is: It's a set of unspoken workplace guidelines

A common misconception about a business code of ethics is that it consists solely of unspoken workplace guidelines. In reality, a business code of ethics is often a formalized document that outlines an organization’s principles and standards for acceptable behavior. It serves as a guide for decision-making and helps to establish a culture of integrity within the company. While it is true that some ethical guidelines may not be explicitly written down and can be understood through shared values and norms, the effectiveness of a business code of ethics is greatly enhanced when it is clearly communicated and formally documented. This ensures that all employees have a consistent understanding of the ethical expectations within the workplace and can refer back to it when necessary. Moreover, a code of ethics is not just a guideline for behavior; it is intended to reinforce the importance of ethical conduct and accountability, ultimately supporting a positive organizational reputation and trust.