Company Codes Of Ethical Conduct Essay

Understand Company’s Goals and Objectives Thoroughly – The ethical codes of conduct are guidelines and instructions that must align an individual’s personal goals with the organizational goals and objectives. Any code that acts as a bottleneck and deviates an employee from achieving efficiency in operations must be eliminated immediately from the list of draft codes.

Understand Major Issues – Usually, there are a few major issues prevalent in an organization’s workplace, such as sexual harassment, bribery, or simply competitive rivalry. Therefore, it is necessary to understand the most frequent and major issues of a company and frame policies/codes covering them extensively.

Refer to The Codes Made by Competitors – To broaden the scope and reach of the ethical codes, companies refer to the codes framed by their competitors’ active in the industry. Hold Meetings with Stakeholders – Ultimately, it is the management and stakeholders of the organization, which finalizes and approves the draft list of codes. Hence it is necessary to have a meeting with them and understand their requirements.

General Items Included in Ethical Codes of Conduct – Every organization is different from others in terms of size, nature of business, and area of operations. Hence, every organization’s common practice prepares and frames its ethical conduct codes, considering how diverse and disciplined their workforce is. Still, there are a few general items, usually present in the codes of almost all the organizations, such as:

A Code Protecting, The Assets of The Company – It is no wonder that dissatisfied and ignorant employees tend to use the company’s assets roughly and coarsely. To protect the company’s assets, it is a general practice to punish the accused with fines, salary cuts, and limited promotions.

Say No to Corruption and Bribery – Money is the driving force and has the power to exploit even the most innocent. Therefore, codes are framed to motivate employees to work honestly, legally and report bribery and corruption cases to the concerned officers.

Anti-harassment – It has been observed that employees are often bullied and harassed by their peers on various issues. Sexual harassment is a common problem experienced mostly by female employees. To prevent such circumstances, strict codes and laws are framed within the organization.

Dress Codes – Employees are expected to show at their office in a proper formal dress. Wearing casuals such as T-shirts, shorts, and pajamas is not allowed and acceptable. There is the existence of dress codes worldwide, with some organizations require their employees to wear dresses with their logos and banners.

Use of Cell Phone and Social Media – It is common for employees to use cell phones or log in to their social media accounts alongside completing their tasks. Such multi-tasking severely affects the performance of an employee. Usually, strict codes are in place to encourage discipline and to prevent the occurrence of such events.

Advantages & Disadvantages Of Company Codes
Advantages of Company Codes

The following are some of the benefits of having a business code of conduct:

It strengthens the company’s core values and beliefs while also establishing the appropriate culture.

Provides the company with a vision and a mission.

Develops the company’s market reputation

Keeps the company and its employees from breaking any laws or regulations.

Creates an atmosphere of trust and ethical behavior.

Disadvantages of Company Codes

The main disadvantages of having a business code of conduct are :

The implementation of the ethical code of conduct can lead to reduced profitability for the business organization.

The framing and implementation of the ethical code of conduct is a time-consuming process for the company.

It is not suitable for small businesses as it may reduce the profits of the organization.

Importance Of Framing Codes Of Ethical Conduct
There are various benefits of having a set of carefully designed and seriously implemented codes of ethical conduct, such as:

Develops a sense of protection in the employee from possible harassment, bullying, and leg-pulling.

Improves employee’s satisfaction and concentration levels, helping them to improve their performance and enhance productivity.

Prevents instances of thefts, bribery, and corruption, along with reduced occurrences of unethical activities.

Helps to maintain the decorum of the workplace.

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