What is the primary difference between compliance-based ethical codes and integrity-based ethical codes?
Compliance-based codes are viewed as laws that should not be violated, whereas integrity-based codes are viewed as values that should be
upheld.
Compliance-based codes are bottom-up systems established by employees, whereas integrity-based codes are top-down systems imposed by
management.
O Compliance-based codes are common in small companies, whereas integrity-based codes are more common among small companies and start-ups.
O Compliance-based codes are enforced via the honor system, whereas integrity-based codes are enforced via strict monitoring and the threat of
punishment.

Compliance-based ethical codes are focused on adhering to laws and regulations set by external entities and are typically mandatory in nature. On the other hand, integrity-based ethical codes are centered around internal values and principles that guide behavior beyond mere legal requirements.

Compliance-based codes emphasize following external rules to avoid legal repercussions, while integrity-based codes prioritize upholding internal moral standards even when not explicitly required by law.

For example, compliance-based ethical codes may govern areas like financial reporting standards, while integrity-based codes focus on fostering a culture of honesty and trust within the organization.

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