Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which principle stress the importance of employee welfare and moral in organizations?

1. Equity

2. Fair remuneration

3. Esprit de Corps

4. Stability of jobs

The correct answer is: Esprit de Corps

The principle that stresses the importance of employee welfare and morale in organizations is rooted in the concept of Esprit de Corps. This term reflects the spirit of unity, morale, and camaraderie that should exist among members of an organization. When employees feel a sense of belonging and teamwork, their overall welfare is prioritized, leading to improved morale, productivity, and engagement in their work. Esprit de Corps emphasizes the idea that fostering a positive organizational culture and strong interpersonal relationships among employees enhances their job satisfaction and commitment to the organization. It recognizes that when employees are motivated and feel supported, this contributes significantly to their welfare, indirectly affecting retention and performance. Other options like equity, fair remuneration, and stability of jobs are important to an organization but focus more on specific aspects of employment rather than the overarching importance of fostering morale and collective spirit among employees. While these principles contribute to employee welfare in various ways, it is Esprit de Corps that specifically encapsulates the notion of unity and collective morale as critical to organizational success.