The employees are bound to act as per the corporates code of conduct. The employees cannot act as per their interests and for their gains. A person should follow certain ethics and values that guide or helps differentiate right or wrongdoings. This is called as corporate-based ethics. Corporate-based ethics is all about doing rightful doings. Corporate-based ethics aims to guide the thinking process, actions, and decisions as per the corporate values that help employees to make right and fair decisions in a corporate setting. This further helps employees and peers know the company’s standards and maintain them as per the values and ethics of the company. Companies’ values and ethics are often constructed as per the knowledge a person gains throughout their life; these standards tell who they are, whom they belong to, and what is important. When actions are performed by the employees who are against the interest of the corporates, the corporates shall be mainly concerned more with the actions performed by the employees and are not concerned about the consequences of performing the actions. Few actions involve:
Employees should aim to do the right thing.
Employees should perform certain action because it is right.
Employees should never do wrong things against the interest of the corporates
Employees should avoid doing particular things because they are wrong and against the interest incorporated.
The decision-making abilities of the corporate or the employees should not be towards their interest. When a conflict of interest occurs, such a party shall be removed from their services. The situation legally requires the corporate or the employees to be removed from their services when a conflict of interest occurs. When personal interest dominates and the duties required to be performed for the employer reduces, there occurs a conflict of interest. The corporate or the employees exploit their status for personal benefits in some way or the other. All instances that lead to conflicts of interest are subject to legal consequences and penalties.
Types of Conflicts of Interest
Some of the common types of conflicts of interest include self-dealing, insider trading, issuing and accepting gifts and perks, instances of nepotism. When top-level management accepts some perks or some form of transaction from another organization that affects the company and brings harm to the corporation are termed as self-dealing instances. This indicated that management’s interest and the person performing such actions do not have the same interest. There are instances where senior managers, corporate managers, and project managers accept gifts from clients that conflict with the corporation’s interests. Certain companies prohibit senior management from accepting gifts from their clients. Hiring individuals from the same family for a favorable workplace leads to nepotism.
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