Certified Internal Auditor (CIA) Practice Test

What is the strategy for establishing a successful code of ethics within an organization?

1. Enforcement of punitive measures

2. Development through employee input

3. Periodic updates from management

4. Mandatory training sessions annually

The correct answer is: Development through employee input

The strategy of development through employee input is crucial for establishing a successful code of ethics within an organization because it fosters a sense of ownership and commitment among employees. When employees are involved in the creation or revision of the code of ethics, they are more likely to understand its importance and relevance to their daily work and to the organizational culture. This collaborative approach leads to a code that reflects the values and concerns of the entire workforce, making it more effective and applicable. Engaging employees in discussions and soliciting their feedback also helps uncover real-life ethical dilemmas they face, ensuring the code addresses practical issues and resonates with the organizational culture. This participatory method not only enhances adherence but also demonstrates that leadership values the perspectives of its employees, which can strengthen trust and morale within the organization. In contrast, relying solely on punitive measures or periodic updates from management may not create the same level of engagement or understanding among employees. Mandatory training sessions, while important, should ideally complement a code developed with input from the staff rather than serve as the primary means of establishing ethical standards.