GRE General Test: RC-124304 GRE Reading Comprehension

Government department head: We already have a code of ethics that companies doing business with the department are urged to abide by. The fact that virtually all of the companies have agreed to abide by it indicates that it is successful. Therefore, neither stronger ethics regulations nor enforcement mechanisms are necessary to ensure ethical behavior by companies doing business with the department.
Which of the following, if true, casts most doubt on the department head s conclusion?