The correct answer is A. code of ethics. A code of ethics is a formal, written set of ethical standards that serves as a guide for an organization’s actions and the behavior of its members. Let’s explore in detail why this answer is correct and why the other options are not suitable for describing a formal set of ethical standards in an organizational context.

A. Code of Ethics (Correct Answer):

A code of ethics is a foundational document that outlines the principles, values, and rules governing the ethical behavior of an organization and its members. It serves several crucial purposes:

1. Ethical Guidance:

A code of ethics provides clear and specific guidelines to help employees, executives, and other stakeholders understand what constitutes ethical conduct within the organization. It outlines the expected standards of behavior and the ethical principles that should be upheld.

2. Organizational Culture:

The code of ethics plays a significant role in shaping an organization’s culture. It communicates the organization’s commitment to ethical behavior, integrity, and values. By adhering to the code, the organization fosters a culture of trust and responsibility.

3. Decision-Making:

When individuals within the organization face ethical dilemmas or difficult decisions, a code of ethics can offer guidance. It helps employees make ethical choices and resolve ethical conflicts by referencing the established ethical standards.

4. Accountability:

A code of ethics also serves as a basis for holding individuals accountable for their actions. Violations of the code can result in disciplinary actions, upholding the organization’s commitment to ethical conduct.

5. External Reputation:

A well-implemented code of ethics can enhance the organization’s reputation among external stakeholders, such as customers, suppliers, investors, and the public. It demonstrates the organization’s commitment to ethical practices and social responsibility.

Now, let’s discuss why the other options are not correct:

B. Word of Ethics:

“Word of ethics” is not a standard or recognized term in the field of ethics or organizational management. It does not accurately describe a formal written document outlining ethical standards for an organization. The correct terminology in this context is “code of ethics.”

C. Ethical Dilemma:

An “ethical dilemma” refers to a situation in which a person is faced with a choice between two or more conflicting ethical principles, where each option has its ethical pros and cons. It is not a formal written set of ethical standards, as the question implies. While codes of ethics can help individuals navigate ethical dilemmas, they are not the dilemmas themselves.

D. None of the Above:

This option is not correct because a formal written set of ethical standards guiding an organization’s actions is indeed referred to as a “code of ethics.” It is a well-established term and concept in the fields of ethics and organizational management. Choosing “None of the above” would disregard this widely recognized terminology.

In summary, a code of ethics is the correct term for a formal, written set of ethical standards that guides an organization’s actions and the behavior of its members.

It plays a critical role in establishing ethical principles, shaping the organization’s culture, providing ethical guidance, and ensuring accountability for ethical behavior. The other options do not accurately represent this concept and are not commonly used in this context.