ITPEC IP April 2026 Question 77
Which of the following is the most appropriate as an example of an enhancement activity for compliance?
Explanation
Education for employees on the laws and rules they must follow — compliance means observing laws, regulations, internal rules and social norms, and staff can only follow rules they know.
A company strengthens compliance by building a system for observing rules: a code of conduct and internal regulations, education and training for employees, a whistle-blowing channel, and monitoring and internal audit. Education is the core of it, because many violations come from not knowing what the law or a rule requires.
Answer (b)
Why not others:
- •(a) — supporting employees' community service is a social contribution (CSR) activity, not the observance of laws and rules
- •(c) — acquiring another company's business for speed is M&A, a growth strategy
- •(d) — withdrawing from unprofitable businesses is selection and concentration of the business portfolio
Key rule: Compliance is the observance of laws, rules and social norms, built through rules, education, reporting channels and monitoring; CSR activities go beyond it voluntarily.
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