Solution Manual For Managerial Accounting, 12CE Ray H. Garrison, Theresa Libby, Alan Webb Chapter 1-14 With Appendix Chapter 1 Solution to Discussion Case Benefits to employees of having a code of conduct: Creates clarity as to how all employees are expected to behave. This should help employees avoid behaviours that the company prohibits. Provides protection for employees when dealing with superiors given the guidelines related to protection from discrimination and harassment. Establishes guidelines for workplace safety, which should help protect the health of employees. Provides information on the consequences of code violations, which will help understand employees understand the outcomes of prohibited behaviours, if detected. Provides guidance as to what employees should do if they witness a violation of the code and protects those employees who do report an incident. Disadvantages to CIBC of having a code of conduct: May create the impression among employees that they are not trusted by senior management to act appropriately. The obligation to report violations could create a culture of suspicion and mistrust among employees. Enforcing the code may be costly and time consuming in large organizations such as CIBC. For example, investigations of possible violations could take weeks. CIBC may be at a competitive disadvantage versus firms that have a less ‗restrictive‘ code of behaviour.
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