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What is the main risk-control role of a professional code of conduct in management?

Answer and explanation

Correct answer: Preventing personal-gain bias and unethical decisions

The governing concept is ethical regulation through a professional code of conduct. Such a code sets expected standards for honesty, fairness, confidentiality, conflict-of-interest disclosure, and responsible use of authority. It reduces risk by guiding managers before a questionable decision is made and by providing a basis for review when conduct is challenged. Option A is correct because it directly addresses personal-gain bias and unethical choices, both of which can damage stakeholders and organisational reputation. A code does not prohibit legitimate profit, remove employees, or eliminate specialised knowledge; those alternatives misunderstand its preventive and guiding purpose.

Related tags

ManagementProfessionCode-Of-ConductEthicsManagement As A ProfessionNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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