Applying a code of ethics for an organization

 



What is code of ethics?

A code of ethics is a collection of principles and practices that a business believes in and aims to drive by. It set the standards for the behaviors required to ensure compliance with all law, regulations, internal policies and procedures and any communications and instructions issued by the organization


Why is code of ethics important ?

 It provides a common set of rules and standards for all in the profession to apply and it define best practices for the profession. Code of ethics provides a basis to meet compliance requirement, legal standards and it describes what brings your members together as a profession and is the foundation of their shared expectations of each other. Members are proud to belong to an association which provides a framework and standard for their industry


 



What are the Benefits of Having a Code of Ethics in the Workplace?

There are many advantages to having a code of ethics implemented within an organization. When it is implemented well, a code of ethics for business can provide a huge competitive advantage and result in an upturn in the company’s performance such as,

Ä     Guidance

Code of ethics helps to direct a company or employee’s ethical course of action when it is not obvious or apparent.

Ä     Reinforce company values

A code of ethics helps to acquaint its staff members with their values and company culture, and serves as an everyday reminder.

Ä     Consistent management standards

It helps to standardize management standards in terms of their responsibilities to their staff and serves as a layer of protection for staff in positions of power who may otherwise, with or without malice, abuse said power.

Ä     Regulations compliance

Complex government regulatory standards can be tricky to manage and a code of ethics helps in traversing these issues. For example, in the USA the Sarbanes-Oxley Act of 2002 requires that all public companies must have a code of ethics in place for all senior financial officers in order to protect the company, its staff and their customers.

Ä     Building a trustworthy brand

A code of ethics goes a long way to ‘walking the walk’ in terms of being a good, honest business that customers and colleagues alike can understand your transparent values. It demonstrates that the company is taking their ethical responsibilities seriously which will attract responsible investors and build trust in the brand.

Ä     Self-preservation

Having a code of ethics ensures that there are mechanisms in place with which to defend the company in case of a lawsuit (as long as it is followed correctly).

Ä     Morality and social awareness

This demonstrates with actions the lengths to which a company will go to prove their commitment to good ethical practices, which in turn will translate into high morale with their staff, investors and customers. This promotes and develops positive social change, ultimately contributing in a highly positive manner to good business practices.






Conclution

Code of ethic is a basic need for long term sustainability of an organization and the employees. It  will establish proper values and ethical guidelines that will enable to realize the goals of the company and it will ensure that all employees share common values and interests in the company. This will encourage cohesion among the workers.



References

Long, Brad S., and Cathy Driscoll. “Codes of Ethics and the Pursuit of Organizational Legitimacy: Theoretical and Empirical Contributions.” Journal of Business Ethics, vol. 77, no. 2, 2008, pp. 173–89. JSTOR, http://www.jstor.org/stable/25075552.

 Accessed 4 Nov. 2022.

HAYES, A., 2022. https://www.investopedia.com/. [Online]
Available at: https://www.investopedia.com/terms/c/code-of-ethics.asp
[Accessed 01 11 2022].

Peterson, K., 2016. https://www.complianceandethics.org. [Online]
Available at: https://www.complianceandethics.org/develop-implement-effective-code-conduct/
[Accessed 02 11 2022].

Switzer, T., 2020. https://www.yourmembership.com/. [Online]
Available at: https://www.yourmembership.com/blog/code-ethics-important/
[Accessed 01 11 2022].

 


Comments

  1. Chamara RanasingheNovember 9, 2022 at 2:44 AM

    Agreed to have good code of ethics drives the company to a success level. The implementation of ethical principles in relation to the organizations of the third world countries is at a weak level. There are many problems with job security and job satisfaction in this regard.

    ReplyDelete
  2. W.M Dananjaya Jayaweera BandaraDecember 8, 2022 at 10:46 PM

    business or organization, the methods by which professionals are expected to handle issues, the moral standards based on the firm's basic beliefs, and the expectations placed on the professional.

    ReplyDelete
  3. shayanika83December 9, 2022 at 3:41 AM

    The information is really appreciated. This is a fantastic compilation of resources that I want to explore in due time.

    ReplyDelete

Post a Comment

Popular posts from this blog

Impact of a Workforce Spanning Multiple Generations

Image
figure1:multiple genarations; source(jpgriffin group, 2018).   One definition of a multigenerational workforce is one in which the workforce is comprised of employees of varying ages. There are people at all levels of society, with varying levels of education, employment, technological sophistication, family and health status, resilience in the face of adversity, and the ability to make consequential judgments. There has been an increase in the human longevity, and as a result, a growing number of people are electing to continue working much past the traditional retirement age (Boatman, 2021). Due to the age variety in the workforce today, it is now usual for firms to have personnel representing five generations collaborating with one another (Hyman, 2019). These classifications are as follows, ·        Generation Z (ages 18-24) Gen Z members were born between 1995 and 2004, making them the first generation to enter the workforce with "hyper-cognit...
Read more

The Importance of Employee Benefits for a Business

Image
  figure1:employee benifits; source (doyle, 2022). The term "employee benefits" refers to any type of compensation other than wages or salaries that is supplied by the organization and paid for in part by the employer. Moreover, employee benefits are vital to the development of corporate industrial relations. Examples include retirement plans, child care, care for the elderly, programs for hospitalization, social security, vacation and paid holidays. According to Herberg's two-factor theory, an employee benefits package was a necessary and suitable working condition (motivation and hygiene). The hygiene factor will have an effect on employee job motivation and, consequently, productivity. Consequently, employee benefits are important if employee satisfaction and loyalty are to be maintained and improved (Ju, et al., 2008). The Four Most Valuable Employee Benefits Most benefits used to be classified as one of four main categories of employee benefits ·     ...
Read more

What is organizational culture and what is its significance?

Image
  figure1:organizational culture;source (Compliance Prime Team, 2019). Culture comprises a people's customs, history, literature, and philosophy. Everything in a company is shaped by its culture. The operations of your business are characterized by formal and informal attitudes and behaviors. The workplace is made legal. A company's culture is shaped by its aims and aspirations, as well as its leadership and employee expectations, performance management, and employee participation (Wong, 2020). The company's culture influences its ability to provide consistency and direction, to lead decisions and actions, to motivate employees and to assist them in reaching their full potential.   Qualities of great organizational culture Every organization has its own unique culture, and it's vital to preserve the characteristics that give the company its identity (Wong, 2020). On the other hand, the cultures of firms that consistently achieve high levels of performance reflect some c...
Read more