CCEP Certification Practice Exam 2025 – Complete Study Resource

The purpose of a code of ethics is to outline expected behaviors and ethical standards for employees and stakeholders. This foundational document serves several critical functions within an organization. Firstly, it establishes a guiding framework that informs individuals about the beliefs, values, and principles that the organization stands for. It clearly communicates what is deemed acceptable and ethical conduct, which is essential for fostering a positive organizational culture.

Additionally, a well-crafted code of ethics helps to promote accountability and integrity by setting clear expectations for behavior. It empowers employees by providing them with guidelines to navigate ethical dilemmas they may encounter in their work. By outlining these standards, the code encourages a consistent approach to decision-making across the organization, which can also enhance trust and transparency among employees, management, partners, and customers.

In contrast, the other options focus on operational aspects of a business, such as sales targets, marketing strategies, and employee performance evaluations, which are more tactical and do not directly address the ethical principles and standards that govern behavior within the organization. These cannot serve the foundational and principled role that a code of ethics fulfills in guiding conduct and decision-making processes.