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Code of Ethics Code of Ethics A code of ethics issued by a business is a particular kind of policy statement. A properly framed code is, in effect, a form of legislation within the company binding on its employees, with specific sanctions for violation of the code.
If such sanctions are absent, the code is just a list of pieties. The most severe sanction is usually dismissal—unless a crime has been committed.
Business ethics emerged as a specialty in the s in the wake of the "social responsibility" movement embraced by some large corporations; that movement itself was stimulated by rising public interest in consumerism and the environment.
An important distinction exists between law and ethics. Obeying the law is the minimum level of ethical conduct enforced in society; ethical behavior includes more than simply legal behavior. It is unethical to lie, for instance; but lying is against the law only under certain limited circumstances: Business ethics, and the codes that formally define it, always include elements that go beyond strict legality; they demand adherence to a higher standard.
In the wake of the Enron and Worldcom corporate scandals, codes of ethics have taken on yet another dimension. Legislation passed inthe Sarbanes-Oxley Act "SOX"requires that corporations whose stock is traded under the provisions of the Securities Exchange Act of must publish their codes of ethics, if these exist, and also publish any changes to these codes as they are made.
This requirement has given corporations strong incentives to formulate codes of ethics in order to win investor confidence. Most small businesses, of course, are not regulated by the Securities and Exchange Commission SEC because they do not issue publicly traded stock; thus they are not affected by SOX.
Perhaps the best-known code of ethics in history is the Hippocratic Oath taken by all doctors. Contrary to common belief, that oath does not include the phrase "First, do no harm.
In many organizations employees are also required to sign a statement to the effect that they have read and understood it. Variations on this theme exist. In very large corporations or corporations reacting to recent scandals, sometimes only corporate officers or only financial officers are required to sign.
In other cases multiple codes of ethics may exist tailor-made to such functions as purchasing, sales, accounting, etc.
Codes of ethics are free-standing expressions of corporate will even when they are published as chapters or sections in a document which may contain a mission statement, a listing of corporate values, and general policies relating to operations.
Management Sponsorship The introduction or preamble to a code of ethics ideally carries a statement by the top-ranked officer of the corporation indicating his or her personal commitment to and backing of the code.
Experts on and scholars of business ethics never fail to underline the importance of top management leadership, including by example.
Codes of ethics published pro forma, possibly in the context of some rumors of scandals, carry little weight with employees unless tangible signs of corporate commitment are given. The preamble of a code of ethics provides an opportunity for sending such a signal.
Purposes and Values The leading section of the code typically provides an abbreviated mission statement followed by values. This section states what the company is all about, what it does, why it exists. Ideally the code will state practical financial objectives as well as less precise social and professional aspirations.
The statement of values, similarly, will begin with narrowly defined statements and expand on these. Obeying all pertinent laws and regulations may be the initial value; adherence to higher ethical values will be spelled out next.
Corporations engaged in some professional specialty engineering, medicine, law, etc.
Rules of Conduct Rules of conduct are typically subdivided. The Institute of Business Ethics IBEa London-based organization, provides a list easily adaptable by a small business formulating its own code. IBE divides the central presentation into codes of conduct adopted by the business toward its employees, customers, shareholders and other funding agents, suppliers, and then the wider society.
In the subsection dealing with employees, an effective code will be further subdivided into the corporation's conduct toward employees and, separately, conduct expected from its employees.
In the language of business, the groups named above constitute the "stakeholders," those who have a stake in the well-being and also in the ethical behavior of the business. These groups typically define all those with whom the corporation has an interaction.Malaysian business owners are trying to improve their image.
Business ethics practiced in Malaysia have come under scrutiny in recent years. Part of the reason is due to the fact that Malaysia's economy grew at the impressive rate of more than eight percent per year from Oct 01, · Writing up an impressive Contractor Code of Business Ethics and Conduct, and proclaiming the employees are “ethical,” is not the same thing as incorporating programs that are backed by a reinforcement of those rules of conduct.
Nestlé's Code of Business Conduct specifies and helps the continued implementation of the Corporate Business Principles by establishing certain nonnegotiable minimum standards of behaviour in key areas. Code of Ethics, Code of Practice - Could it be that a code of ethics will restrict FL test constructors and they would not be able to Ethical or unethical behavior by employees of Code of Ethics Our Code of Business Conduct serves to guide the actions of our employees.
travel essentials • city views attractions • maps • insider's guide nightlife • culture • restaurants. • Code of Ethics for Finance Professionals • Firmwide Policy Portal • Follow the letter and spirit of the Code and related policies demonstrate the highest standards of business conduct.
Our Code. applies to employees and directors of JPMorgan Chase & Co. and its. direct and indirect subsidiaries (the Code will refer to these.