Code of Business Ethics and Code of Business Conduct are documents issued by organizations to provide guidelines for employees and management. A Code of Business Ethics outlines broad guidelines for appropriate conduct, while a Code of Business Conduct focuses more on how to act in specific situations. Both define the organization's values and rules regarding legal compliance. Developing an effective code involves reviewing mission/values, stakeholder input, past issues, peer practices, and implementing disciplinary actions. Codes are important to provide transparency, ensure ethical operations, and build trust among investors, employees and customers.
Code of Business Ethics and Code of Business Conduct are documents issued by organizations to provide guidelines for employees and management. A Code of Business Ethics outlines broad guidelines for appropriate conduct, while a Code of Business Conduct focuses more on how to act in specific situations. Both define the organization's values and rules regarding legal compliance. Developing an effective code involves reviewing mission/values, stakeholder input, past issues, peer practices, and implementing disciplinary actions. Codes are important to provide transparency, ensure ethical operations, and build trust among investors, employees and customers.
Code of Business Ethics and Code of Business Conduct are documents issued by organizations to provide guidelines for employees and management. A Code of Business Ethics outlines broad guidelines for appropriate conduct, while a Code of Business Conduct focuses more on how to act in specific situations. Both define the organization's values and rules regarding legal compliance. Developing an effective code involves reviewing mission/values, stakeholder input, past issues, peer practices, and implementing disciplinary actions. Codes are important to provide transparency, ensure ethical operations, and build trust among investors, employees and customers.
Code of Business Ethics and Code of Business Conduct are documents issued by organizations to provide guidelines for employees and management. A Code of Business Ethics outlines broad guidelines for appropriate conduct, while a Code of Business Conduct focuses more on how to act in specific situations. Both define the organization's values and rules regarding legal compliance. Developing an effective code involves reviewing mission/values, stakeholder input, past issues, peer practices, and implementing disciplinary actions. Codes are important to provide transparency, ensure ethical operations, and build trust among investors, employees and customers.
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Code of Business Ethics & Code of Business Conduct
Code of Business Ethics
A broad written set of guidelines issued by an organization to its workers and management to help them conduct their actions. It is 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.
Code of Business Conduct
It is more focused on how employees or members should act in a specific situations. A set of organizational rules or standards regarding organizational values, beliefs and ethics as well as matters of legal compliance that govern the conduct of the organization and its members.
Four Distinct Elements of Code of Business Ethics
1. Introduction or Preamble. 2. Statement of its purposes and Values. 3. Specific rules of conduct which may be subdivided in various ways: Honesty Protection Integrity Decision Relationships Regulations Commitment Behavior Trust 4. Implementation of the code, which will define administrative processes, reporting and sanctions.
Types of Business Ethics
1. Personal Responsibility This refers to the personal beliefs of an individual in a certain matters such as honesty, avoiding criminal acts, obedience to elders, willing to perform accepted duties, promptly settling the dues, etc. 2. Representative or Official Responsibility This are the responsibility of any person who occupies a certain position in a company. 3. Personal Loyalties It includes the loyalties of the subordinates to his or her superiors. 4. Corporate Responsibilities Corporations as a legal separate entities in which it has a certain moral responsibilities which differs to the moral code of the managers. 5. Organizational Responsibilities This responsibilities has arisen out of the love and affection of the employees to its working environment. 6. Economic Responsibilities This type of morality guides the individual actions of an economic nature. 7. Technical Morality Professional people should adhere to certain ethical standards established by competent bodies or persons or by customs. 8. Legal Responsibility It refers to the responsibility imposed by law. Everyone should be a law-abiding citizens.
Key Elements of Code of Business Conduct
• Ethical Principles It includes workplace behavior and respect for all people. • Values Includes an honest, unbiased and unprejudiced work environment. • Accountability Includes taking responsibility for your own actions, ensuring appropriate use of information, exercising diligence and duty of care obligations and avoiding conflicts of interest. • Standard of Conduct Includes complying with the job description, commitment to the organization and proper computer, internet and email usage. • Standard of Practice Includes current policies and procedures and business operational manual. • Disciplinary Actions Includes complaints handling and specific penalties for any violation of the code.
Key points in Writing a Code of Business Ethics and Code of
Business Conduct 1. Review the Mission statement and Core Values 2. Talk to the Stakeholders 3. Review Past ethical issues 4. See where other companies have faltered 5. Create a draft code for input and discussion 6. Create final draft and share it.
Importance of Code of Business Ethics and Code of
Conducts A company which stated their morals and made promise to work in an ethical and responsible manner allows the investors a peace of mind that their money are in good hands Employees in the company comfortable in working with their co- employees and customers. Customers are at ease in buying products or services from.
