A ________ is a company’s written standards of ethical behavior that are designed to guide managers…

➤ Why is a code of ethics important for a company?
A code of ethics provides a clear framework for decision-making and helps prevent misconduct. It supports legal compliance, reduces ethical risk, and strengthens corporate culture. By communicating expected behavior, the code builds trust with customers, investors, and regulators and protects the company’s reputation during internal challenges and external scrutiny.