Two common goals of a code of ethics include protecting reputation and protecting assets.

• A. False
• B. True
• C. Only reputation
• D. Only assets

Answer: (B)

A code of ethics aims to guide behavior so the organization and its people act with honesty, fairness, and accountability. By setting clear standards, it helps protect reputation—the trust and credibility the organization has with customers, employees, regulators, and the public. When people act ethically, the organization’s reputation stays strong, which is a valuable asset in itself because it influences relationships, loyalty, and opportunities.

At the same time, ethical guidelines deter misuse of resources and reduce the risk of fraud, corruption, or negligence that could threaten assets—such as money, property, or information systems. By promoting prudent, lawful conduct, the code helps safeguard these tangible and intangible assets from loss or damage.

Because ethics programs typically address both how we should behave to maintain trust and how we should protect the organization’s resources, the statement is true. It would be inconsistent to limit a code of ethics to only one of these areas.