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A Code of Ethics and A Code of Conduct

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12 views

A Code of Ethics and A Code of Conduct

Uploaded by

kiroiya3
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A Code of Ethics and a Code of

Conduct
are two unique docu-
ments.
-A Code of Ethics describes broad ethical
aspirations. A Code
of Conduct describes acceptable
behaviors for specific situations that
are likely to arise

-A Code of Ethics is like the Ten


Commandments, a few general
principles to guide behavior that could fit
on one piece of paper or a
business card
For ex: respecting all owners, customers,
employees, suppliers, com-
munity members, and the natural
environment-is like an aspira-
tions.
-These principles describe the kind of
people we want to be,
such as a person who respects everybody

A Code of Conduct -provides substance


to the Code of Ethics and
is usually several pages long. A Code of
Conduct applies the Code of
Ethics to a host of relevant situation
For Ex: one principle in the
Code of Ethics might state that all
employees will obey the law, a
Code of Conduct might list several
specific laws relevant to organiza-
tional operations that employees will
obey

-Code of Ethics can lists ethical


principles to guide behavior i.e. service,
social justice, dignity and worth of the
person, importance of
human relationships, integrity, and
competence; Code of Conduct can give
a more detailed explanation on how to
obtain
informed consent from clients regarding
the purpose of services pro-
vided, relevant costs, and treatment
alternative

-Many organizations are required to have


Code of Ethics.
Public companies are re-
quired to do so by law.

-private companies do so because it is a


best
practice and in response to market or
stakeholder expectations
-A Code of Ethics, sometimes referred to
as a Values Statement,
expresses the principles that define an
organization’s ideal moral
essence.
-The code should be easy to understand,
use simple language

-A Code of Ethics should be affirmative,


stating how
people should act

-the following six


universal moral values expressed in
many codes;
1.Trustworthiness
2.Respect
3.Responsibility
4.Fairness
5.Caring
6. Citizenship
-Code of Ethics high-
lights guiding principles i.e open
communication, respect for
others, personal integrity, and
performance excellence.

Procedures of Codes
-Have employees participate in
constructing the code
-A cross-functional
team, representing different aspects of
company operations, can then
draft a code for managerial approval. The
end result is a unique Code
of Ethics with a broad base of support
CODE OF ETHICS
-A Code is defined as a systematically
arranged set of principles, standards,
best practices and/or recommendations,
-A code of ethics, also called a code of
conduct or ethical code, set out the
company’s value, ethics, objectives and
responsibilities.

- Code of Ethics sets out practical and


clear terms, the standards of behaviour
expected of all Customers employees

- A well written code of ethics gives


guidance to employees on how to deal
with certain ethical situations.
- Every code of ethics is different and
should reflect the company’s ethos,
values and business style.
-Some codes are short, setting out only
general guidelines, and others are large
manuals, encompassing a huge variety of
situations.

- The code of ethics- is a set of


behavioral rules employees should
follow to ensure the company’s values
are reflected in all business dealings

- clearly defined codes monitor


transactions and keep your company
from violating laws and make it a place
where employees feel comfortable doing
the right thing.
 A code is not a law; it is precatory (in
nature) – that is neither legally nor
contractually binding. However,
some code provisions can migrate into
law.

 Codes are flexible to encompass the


views of many actors within a single
market i.e many industries,
stakeholder groups

 Codes are expressed as principles


subject to exception, rather than as
regulation subject to penalty

Things that can be included in the codes


are:
(a) Company Values.
(b) Avoidance of conflict of interest.
(c) Accurate and timely disclosure in
reports and documents that the company
files before Government agencies, as
well as in Company's other
communications.
(d) Compliance of applicable laws, rules
and regulations

Elements of the Code of Ethics and


Conduct are
 Personal Responsibility - perform
duties with honesty, care, diligence,
professionalism, impartiality and
integrity
 Compliance with the Law
 Relations with the Public- shall
not engage in any discriminatory
practices based on race, national or
ethnic origin, religion, age, sexual
orientation, disability or any other
discriminatory practices.
 Limitations on the Acceptance of
Gifts, Rewards, Hospitality and
Discounts – shall not accept or solicit
any gifts, hospitality or other benefits
that may have a real or apparent
influence on their objectivity in
carrying out their official duties
 Avoiding Conflicts of Interest
 Limitations on Political
Activities- ensure that official
activities are not compromised
 Confidentiality and Use of
Official Information - have a duty not
to disclose (without proper authority
and lawful purpose) any non-public
official information obtained in the
course of their official duties
 Use of Official Property and
Services - the use of resources and
property, as well as services paid for
with official funds for personal
purposes or gain is prohibited
 Work Environment- have the
right to a healthy and safe workplace,
free of discrimination and harassment,

Importance of Code
 Codes of Ethics and Conduct
demonstrate managerial concern
about
ethics, convey a particular set of
values to all employees, and have an
impact on employee behavior.
 They provide employees with clear
and consistent moral guidance

Weakness
 many companies
have a vague Code of Ethics that is
not well-communicated to
employees

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