According to IIA guidance which of the following statements regarding ethics is true?

Question

Options

• ABusiness ethics may vary within an organization with both domestic and foreign operations
• BBusiness ethics are universal n nature and organizations across the world are expected to comply
• CA business ethics policy for an organization s established solely to direct me behavior and
• DBusiness ethics of an organization must remain independent torn those of supplier's customers

• A
  4% (2)
• B
  11% (5)
• C
  2% (1)
• D
  83% (38)

Explanation

According to IIA guidance, an organization's ethical standards must be self-determined and self-sustaining - they cannot be conditional on or influenced by the ethical practices of external parties like suppliers or customers. If an organization allowed its ethics to mirror or depend on those of its business partners, it would risk compromising its integrity whenever those partners operate unethically.

Why the distractors are wrong:

• A is incorrect because IIA guidance expects ethical consistency throughout an organization, even across domestic and foreign operations - cultural context is acknowledged, but not used to justify lowering standards in some divisions.
• B is incorrect because business ethics are not strictly universal; they can vary by culture, industry, and region, and the IIA recognizes this rather than mandating one global standard for all businesses.
• C is incorrect because the word "solely" makes it false - a business ethics policy serves multiple purposes: guiding behavior, protecting reputation, ensuring compliance, building stakeholder trust, and more.

Memory tip: Think of an organization's ethics like a spine - it must stand upright on its own, not lean on whoever it's doing business with. If a supplier or customer has weak ethics, yours shouldn't bend to match. "Independent ethics = organizational integrity."

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