"A credo generally describes the highest values to which the company aspires to operate.’ A code of ethics specifies the ethical rules of operation. In the latter 1980s, The Conference Board, a leading business membership organization, found that 76% of corporations surveyed had codes of ethics.
Some business ethicists disagree that codes have any value. Usually they explain that too much focus is put on the codes themselves, and that codes themselves are not influential in managing ethics in the workplace. Many ethicists note that it's the developing and continuing dialogue around the code's values that is most important.
Occasionally, employees react to codes with suspicion, believing the values are "motherhood and apple pie" and codes are for window dressing. But, when managing a complex issue, especially in a crisis, having a code is critical. More important, it's having developed a code.
As demand for the ethical business is increasing most of the business organizations opted to implement the code of the ethics:
To define the framework of the acceptable behaviour.
To follow high standards of practice.
To create benchmarks for self evaluation.
To enhance sense of community.
To create transparency in the business activities.
To foster higher standards of business ethics.
To comply with government laws and norms.
The code should include following key areas:
The Purpose and Values of the Business: The vision and mission of the organization should be kept always in consideration while creating the code. The products and services offered by the company, production and financial goals should be kept in the mind.
Stakeholders: Shareholders, Customers, Employees, Suppliers are the integral parts of the organization.
• The employee welfare, working conditions, equal opportunities, harassment issues and retirement plans should be mentioned.
• Maximization of Returns' to share holders is the basic purpose of any business. While making the code
of the ethics, the conflicts may arise while dealing with this purpose. The protection to the investments and
the timely returns on the investment are always needed.
• Every business organization knows the importance of the customer satisfaction. The promises about
the fair pricing, quality, after sales service made to the customers should always be kept.
• The payments to the supplier should always be on time. No excess hospitality or bribe should be
accepted or given.
Society, Government and Environment: The compliance with the laws and the social norms should be maintained. The company's activities should always be environment friendly.
Implementation Process: It always important the code is implemented properly. It should be seen that the code is reached and understood properly by all. Awareness campaigns and the training programs should be run if required.
Scope for Feedbacks: The feedback is always necessary for improvement and evaluation of the code.
At least annual report should be given to the board members. Review procedure should be created to update
the codes.
Following factors should be always kept in the mind:
Involvement of the Senior Management: Every company needs a champion or role model or mentor to
guide the corporate ethics program. A senior person mostly CEO or Chairman should take the responsibility to lead the ethics program. The board and senior management should show the enthusiasm and always provide the guidance to the employee.
Involvement of the Employee: No program can be successful without involvement of the grass root employees. It is important to know what bothers people while making the code of ethics. Each and every person should know the code of the ethics and should be made to follow it.
Picking The Well Tested Model: A framework which addresses issues as they affect different constituents should be used. Sometimes the competitors should be considered. If the company is global then laws and people of the other nations must be included in the model. Running the Corporate Ethics Program is not always easy but it's worth running as it gives returns in the long run.
Some business ethicists disagree that codes have any value. Usually they explain that too much focus is put on the codes themselves, and that codes themselves are not influential in managing ethics in the workplace. Many ethicists note that it's the developing and continuing dialogue around the code's values that is most important.
Occasionally, employees react to codes with suspicion, believing the values are "motherhood and apple pie" and codes are for window dressing. But, when managing a complex issue, especially in a crisis, having a code is critical. More important, it's having developed a code.
As demand for the ethical business is increasing most of the business organizations opted to implement the code of the ethics:
To define the framework of the acceptable behaviour.
To follow high standards of practice.
To create benchmarks for self evaluation.
To enhance sense of community.
To create transparency in the business activities.
To foster higher standards of business ethics.
To comply with government laws and norms.
The code should include following key areas:
The Purpose and Values of the Business: The vision and mission of the organization should be kept always in consideration while creating the code. The products and services offered by the company, production and financial goals should be kept in the mind.
Stakeholders: Shareholders, Customers, Employees, Suppliers are the integral parts of the organization.
• The employee welfare, working conditions, equal opportunities, harassment issues and retirement plans should be mentioned.
• Maximization of Returns' to share holders is the basic purpose of any business. While making the code
of the ethics, the conflicts may arise while dealing with this purpose. The protection to the investments and
the timely returns on the investment are always needed.
• Every business organization knows the importance of the customer satisfaction. The promises about
the fair pricing, quality, after sales service made to the customers should always be kept.
• The payments to the supplier should always be on time. No excess hospitality or bribe should be
accepted or given.
Society, Government and Environment: The compliance with the laws and the social norms should be maintained. The company's activities should always be environment friendly.
Implementation Process: It always important the code is implemented properly. It should be seen that the code is reached and understood properly by all. Awareness campaigns and the training programs should be run if required.
Scope for Feedbacks: The feedback is always necessary for improvement and evaluation of the code.
At least annual report should be given to the board members. Review procedure should be created to update
the codes.
Following factors should be always kept in the mind:
Involvement of the Senior Management: Every company needs a champion or role model or mentor to
guide the corporate ethics program. A senior person mostly CEO or Chairman should take the responsibility to lead the ethics program. The board and senior management should show the enthusiasm and always provide the guidance to the employee.
Involvement of the Employee: No program can be successful without involvement of the grass root employees. It is important to know what bothers people while making the code of ethics. Each and every person should know the code of the ethics and should be made to follow it.
Picking The Well Tested Model: A framework which addresses issues as they affect different constituents should be used. Sometimes the competitors should be considered. If the company is global then laws and people of the other nations must be included in the model. Running the Corporate Ethics Program is not always easy but it's worth running as it gives returns in the long run.