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

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