Company a Has a Formal Comprehensive Corporate Code of Ethics

Multiple Choice

Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred? 1. Company A exhibits a higher standard of ethical behavior than does company B. 2. Company A has established objective criteria by which an employee's actions can be evaluated. 3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

A) 2 only
B) 3 only
C) 1 and 2 only
D) 2 and 3 only