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The code of conduct reflecting moral principles cannot provide guidelines or rules to cover [ every possible situation / all possible situations ], which creates ethics loophole that may be used by employees, possibly leading them to immoral and enthical behavior.

Which of the two is grammatically correct? Are both acceptable? Thank you always.

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In your example, both

every possible situation
all possible situations

can be used interchangeably without loss of meaning.

As for the rest of your sentence

which creates ethical loopholes that may be used by employees, possibly leading them to immoral and unethical behavior.

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