Abner Adjuster's claims firm has a comprehensive rule-based ethics code that prohibits accepting gifts of any value. If Abner accepts extravagant gifts from defense firms, what is the likely result?

• A. The gifts will be ignored and no one will notice.
• B. Without complete top management support, the code of ethics is not supported or taken seriously by the employees.
• C. Gifts will be allowed but with strict logging.
• D. Regulators will impose penalties.

Answer: (B)

Rule-based ethics codes only work when leadership visibly backs them and enforces them. If top management isn’t fully committed, employees won’t take the code seriously or expect it to be enforced. Abner accepting extravagant gifts signals that the policy isn’t being modeled or enforced, so staff won’t treat the rule as binding. That lack of credibility and enforcement is exactly what option B describes: the code isn’t supported or taken seriously by employees. The other options assume outcomes like no one noticing, logging with lax enforcement, or external penalties, which hinge on leadership and internal commitment to the rule—absent that backing, those scenarios are unlikely.