UNIT- 1

BUSINESS ETHICS
The term ‘Business Ethics’ refers to the system of moral principles and rules of the
conduct applied to business. Business being a social organ shall not be conducted in a
way detrimental to the interests of the society and the business sector itself. Every
profession or group frames certain do’s and do not’s for its members. The members are
given a standard in which they are supposed to operate. These standards are
influenced by the prevailing economic and social situations. The codes of conduct are
periodically reviewed to suit the changing circumstances.

“Business Ethics is generally coming to know what is right or wrong in the work
place and doing what is right. This is in regard to effects of products/services and
in relationship with the stake holders.” —Cater Mcnamara

“Business ethics in short can be defined- as the systematic study of ethical matters
pertaining to the business, industry or related activities, institutions and beliefs.
Business ethics is the systematic handling of values in business and industry.”
:John Donaldson

Business ethics is the study of appropriate business policies and practices regarding
potentially controversial subjects including corporate governance, insider trading,
bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The
law often guides business ethics, but at other times business ethics provide a basic
guideline that businesses can choose to follow to gain public approval.

Business ethics ensure that a certain basic level of trust exists between consumers and
various forms of market participants with businesses. For example, a portfolio manager
must give the same consideration to the portfolios of family members and small
individual investors. These kinds of practices ensure the public receives fair treatment.

The concept of business ethics began in the 1960s as corporations became more
aware of a rising consumer-based society that showed concerns regarding the
environment, social causes, and corporate responsibility. The increased focus on so-
called social issues was a hallmark of the decade.

Since that time period, the concept of business ethics has evolved. Business ethics
goes beyond just a moral code of right and wrong; it attempts to reconcile what
companies must do legally versus maintaining a competitive advantage over other
businesses. Firms display business ethics in several ways.

Importance of Business Ethics

1. Corresponds to Basic Human Needs

The basic need of every human being is that they want to be a part of the organization
which they can respect and be proud of, because they perceive it to be ethical.

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Everybody likes to be associated with an organization which the society respects as a

honest and socially responsible organization. The HR managers have to fulfill this basic
need of the employees as well as their own basic need that they want to direct an
ethical organization. The basic needs of the employees as well as the managers compel
the organizations to be ethically oriented.

2. Credibility in the Public

Ethical values of an organization create credibility in the public eye. People will like to
buy the product of a company if they believe that the company is honest and is offering
value for money. The public issues of such companies are bound to be a success.
Because of this reason only the cola companies are spending huge sums of money on
the advertisements now-a-days to convince the public that their products are safe and
free from pesticides of any kind.

3. Credibility with the Employees

When employees are convinced of the ethical values of the organization they are
working for, they hold the organization in high esteem. It creates common goals, values
and language. The HR manager will have credibility with the employees just because
the organization has creditability in the eyes of the public. Perceived social uprightness
and moral values can win the employees more than any other incentive plans.

4. Better Decision Making

Respect for ethics will force a management to take various economic, social and ethical
aspects into consideration while taking the decisions. Decision making will be better if
the decisions are in the interest of the public, employees and company’s own long term
good.

5. Profitability

Being ethical does not mean not making any profits. Every organisation has a
responsibility towards itself also i.e., to earn profits. Ethical companies are bound to be
successful and more profitable in the long run though in the short run they can lose
money.

6. Protection of Society

Ethics can protect the society in a better way than even the legal system of the country.
Where law fails, ethics always succeed. The government cannot regulate all the
activities that are harmful to the society. A HR manager, who is ethically sound, can
reach out to agitated employees, more effectively than the police.

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Sources of Business Ethic

In every society there are three sources of business ethics-Religion, Culture and Law.
The HR manager in every organization, thus, has to be well versed with the unique
system of values developed by these three sources.

These sources are discussed as follows:

1. Religion

Religion is the oldest source of ethical inspiration. There are more than 1, 00,000
religions which exist across the whole world, but all of them are in agreement on the
fundamental principles. Every religion gives an expression of what is wrong and right in
business and other walks of life. The Principle of reciprocity* towards one’s fellow
beings is found in all the religions. Great religions preach the necessity for an orderly
social system and emphasize upon social responsibility with an objective to contribute
to the general welfare. With these fundamentals, every religion creates its own code of
conduct.

2. Culture

Culture is the set of important understandings that members of a community share in

common. It consists of a basic set of values, ideas, perceptions, preferences, concept of
morality, code of conduct etc. which creates distinctiveness among human groups.
When we talk about culture we typically refer to the pattern of development reflected in
a society’s pattern of knowledge, ideology, values, laws, social norms and day to day
rituals. Depending upon the pattern and stage of development, culture differs from
society to society. Moreover culture is passed from generation to generation. Culture
facilitates the generation of commitment to something larger than one’s individual self
interest.

Culture encourages the members of the organization to give priority to organizational

goals over and above their personal interests. Culture also serves as a sense making
and control mechanism that guides and shapes the attitudes and behaviour of people.
Managers have to run an industrial enterprise on the cutting edge of cultural experience.
The tension that their actions create makes the business ethically more complex.

3. Law

The legal system of any country, guide the human behaviour in the society. Whatever,
ethics the law defines are binding on the society. The society expects the business to
abide by the law. Although it is expected that every business should be law abiding,
seldom do the businesses adhere to the rules and regulations. Law breaking in
business is common eg. Tax evasion, hoarding, adulteration, poor quality & high priced
products, environment pollution etc.

*Reciprocity = Relationship involving Mutual Exchange.

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Examples of Business Ethics

Here are a few examples of business ethics at work as corporations attempt to balance
marketing and social responsibility. For example, Company XYZ sells cereals with all-
natural ingredients. The marketing department wants to use the all-natural ingredients
as a selling point, but it must temper enthusiasm for the product versus the laws that
govern labeling practices.

Some competitors’ advertisements tout high-fiber cereals that have the potential to
reduce the risk of some types of cancer. The cereal company in question wants to gain
more market share, but the marketing department cannot make dubious health claims
on cereal boxes without the risk of litigation and fines. Even though competitors with
larger market shares of the cereal industry use shady labeling practices, that doesn’t
mean every manufacturer should engage in unethical behavior.

For another example, consider the matter of quality control for a company that
manufactures electronic components for computer servers. These components must
ship on time, or the manufacturer of the parts risks losing a lucrative contract. The
quality-control department discovers a possible defect, and every component in one
shipment faces checks.

Unfortunately, the checks may take too long, and the window for on-time shipping could
pass, which could delay the customer’s product release. The quality-control department
can ship the parts, hoping that not all of them are defective, or delay the shipment and
test everything. If the parts are defective, the company that buys the components might
face a firestorm of consumer backlash, which may lead the customer to seek a more
reliable supplier.

Characteristics of Business ethics

(i) A Discipline:

Business ethics are the guiding principles of business function. It is the knowledge
through which human behaviour is learnt in a business situation.

(ii) Ancient Concept:

Business ethics is an ancient concept. It has it origin with the development of human
civilization.

(iii) Personal Dignity:

The principles of ethics develop the personal dignity. Many of the problems of ethics
arise due to not giving dignity to individual. All the business decisions should be aimed
by giving dignity to the customers, employees, distributors, shareholders and creditors,
etc. otherwise they develop in immorality in the business conducts.

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(iv) Related to Human Aspect:

Business ethics studies those activities, decisions and behaviours which are concerned
with human aspect. It is the function of the business ethics to notify those decisions to
customers, owners of business, government, society, competitors and others on good
or bad, proper or improper conduct of business.

(v) Study of Goals and Means:

Business ethics is the study of goals and means for the rational selection of sacred
objects and their fulfillment. It accepts the principles of “Pure goals inspire for pure
means” and “Means justifies the end”. It is essential that goals and means should be
based on morals.

(vi) Different from Social Responsibility:

Social responsibility mainly relates to the policies and functions of an enterprise,

whereas business ethics to the conduct and behaviour of businessmen. But it is a fact
that social responsibility of business and its policies is influenced by the business ethics.

(vii) Greater than Law:

Although the law approves various social decisions, but the law is not greater than
ethics. Law is usually related to the minimum control of social customs whereas ethics
gives importance to individual and social welfare actions.

Nature of Business Ethics

The characteristics or features of business ethics are:

 Code of conduct: Business ethics is a code of conduct. It tells what to do and

what not to do for the welfare of the society. All businessmen must follow this
code of conduct.
 Based on moral and social values: Business ethics is based on moral and
social values. It contains moral and social principles (rules) for doing business.
This includes self-control, consumer protection and welfare, service to society,
fair treatment to social groups, not to exploit others, etc.
 Gives protection to social groups: Business ethics give protection to different
social groups such as consumers, employees, small businessmen, government,
shareholders, creditors, etc.
 Provides basic framework: Business ethics provide a basic framework for
doing business. It gives the social cultural, economic, legal and other limits of
business. Business must be conducted within these limits.
 Voluntary: Business ethics must be voluntary. The businessmen must accept
business ethics on their own. Business ethics must be like self-discipline. It must
not be enforced by law.

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 Requires education and guidance: Businessmen must be given proper

education and guidance before introducing business ethics. The businessmen
must be motivated to use business ethics. They must be informed about the
advantages of using business ethics. Trade Associations and Chambers of
Commerce must also play an active role in this matter.
 Relative Term: Business ethics is a relative term. That is, it changes from one
business to another. It also changes from one country to another. What is
considered as good in one country may be taboo in another country.
 New concept: Business ethics is a newer concept. It is strictly followed only in
developed countries. It is not followed properly in poor and developing countries.

Scope of Business Ethics

Ethical problems and phenomena arise across all the functional areas of companies
and at all levels within the company.

1. Ethics in Compliance

Compliance is about obeying and adhering to rules and authority. The motivation for
being compliant could be to do the right thing out of the fear of being caught rather than
a desire to be abiding by the law. An ethical climate in an organization ensures that
compliance with law is fuelled by a desire to abide by the laws. Organizations that value
high ethics comply with the laws not only in letter but go beyond what is stipulated or
expected of them.

2. Ethics in Finance

The ethical issues in finance that companies and employees are confronted with
include:

 In accounting: window dressing, misleading financial analysis.

 Related party transactions not at arm’s length
 Insider trading, securities fraud leading to manipulation of the financial markets.
 Executive compensation.
 Bribery, kickbacks, over billing of expenses, facilitation payments.
 Fake reimbursements

3. Ethics in Human Resources

Human resource management (HRM) plays a decisive role in introducing and

implementing ethics. Ethics should be a pivotal issue for HR specialists. The ethics of
human resource management (HRM) covers those ethical issues arising around the
employer-employee relationship, such as the rights and duties owed between employer
and employee.

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The issues of ethics faced by HRM include:

 Discrimination issues i.e. discrimination on the bases of age, gender, race,

religion, disabilities, weight etc.
 Sexual harassment.
 Affirmative Action.
 Issues surrounding the representation of employees and the democratization of
the workplace, tradeization.
 Issues affecting the privacy of the employee: workplace surveillance, drug
testing.
 Issues affecting the privacy of the employer: whistle-blowing.
 Issues relating to the fairness of the employment contract and the balance of
power between employer and employee.
 Occupational safety and health.

Companies tend to shift economic risks onto the shoulders of their employees. The
boom of performance-related pay systems and flexible employment contracts are
indicators of these newly established forms of shifting risk.

4. Ethics in Marketing

Marketing ethics is the area of applied ethics which deals with the moral principles
behind the operation and regulation of marketing. The ethical issues confronted in this
area include:

 Pricing: price fixing, price discrimination, price skimming.

 Anti-competitive practices like manipulation of supply, exclusive dealing
arrangements, tying arrangements etc.
 Misleading advertisements
 Content of advertisements.
 Children and marketing.
 Black markets, grey markets.

5. Ethics of Production

This area of business ethics deals with the duties of a company to ensure that products
and production processes do not cause harm. Some of the more acute dilemmas in this
area arise out of the fact that there is usually a degree of danger in any product or
production process and it is difficult to define a degree of permissibility, or the degree of
permissibility may depend on the changing state of preventative technologies or
changing social perceptions of acceptable risk.

 Defective, addictive and inherently dangerous products and

 Ethical relations between the company and the environment include pollution,
environmental ethics, and carbon emissions trading.
 Ethical problems arising out of new technologies for eg. Genetically modified
food
 Product testing ethics.

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The most systematic approach to fostering ethical behaviour is to build corporate

cultures that link ethical standards and business practices.

Types of Business ethics

Personal Responsibilities: This refers to the personal beliefs of an individual. Every
individual has certain firm beliefs on certain matters’ such as honesty, avoiding criminal
acts, obedience to elders, willing to perform accepted duties, promptly settling the dues
etc.

Official Responsibilities: Only persons or human beings occupy positions. A person

who-is occupying a certain position should strictly follow certain norms and other
standards set for that official capacity.

Personal Loyalties: These include loyalties of a subordinate to his superior. So long as

the superior is just and honest, the subordinates shall not face any problem.

Corporate Responsibilities: Corporations, as separate legal entities, have certain

moral responsibilities. The responsibilities may not be identical with the personal moral
codes of the managers who run the company. These responsibilities may be internal or
external.

Organizational Loyalties: Many people develop a deep sense of loyalty towards the
organization as an entity that goes beyond their personal interest. This loyalty has
arisen out of love and affection. This factor can be stimulated effectively. If so, the
employees will work hard and help the enterprise in achieving its objectives.

Economic Responsibilities: This type of morality guides the individual actions of an

economic nature. For instance, some businessmen think it immoral to borrow. However,
this type of people is very rare to see.

Technical Morality: Professional people should adhere to certain ethical standards

established by competent bodies or persons or by customs. The Code of Conduct set
for them by the concerned institutions governing the profession binds lawyers, chartered
accountants, doctors etc.

Legal Responsibility: It refers to the responsibility imposed by law. What are all illegal
are supposed to be unethical also. Everyone should be a law-abiding citizen.

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Causes of Un-Ethical Behavior at Workplace

Introduction:

 Ethics at the workplace means doing the right thing, even when no one is
watching.
 Un-ethical behavior is when people at work do things that are wrong, unfair, or
harmful.

Cause 1: Pressure to Meet Targets

Explanation: Sometimes, people feel a lot of pressure to meet work targets, and this
can lead to unethical behavior.

Example: Imagine a salesperson who is told to sell a certain number of products every
month. To meet this target, they might lie to customers about the product's benefits.

Cause 2: Lack of Training and Awareness

Explanation: If employees don't know what is right or wrong at work, they may make
unethical choices without realizing it.

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Example: Suppose a new employee hasn't been trained on the company's ethical
guidelines. They might accidentally share confidential information with the wrong
person.

Cause 3: Fear of Consequences

Explanation: When people are afraid of getting into trouble, they might do unethical
things to avoid punishment.

Example: Think of an employee who made a mistake. Instead of admitting it, they hide
it because they are scared of getting fired.

Cause 4: Peer Pressure and Office Culture

Explanation: Sometimes, a workplace can have a culture where everyone does

unethical things, and people feel pressured to join in.

Example: Imagine a group of coworkers who make fun of a colleague who follows the
rules. Others may start behaving unethically because they want to fit in.

Cause 5: Lack of Ethics in Leadership

Explanation: Leaders set an example for others. If leaders act unethically, it can
influence their team members to do the same.

Example: Consider a manager who lies to their team about their performance. Team
members might think it's okay to lie as well.

Cause 6: Personal Gain

Explanation: Sometimes, people do unethical things at work because they want to

benefit themselves, even if it hurts others.

Example: Think of an employee who takes credit for their colleague's idea to get a
promotion.

Cause 7: Lack of Whistleblower Protection

Explanation: If employees are afraid of reporting unethical behavior because they fear
retaliation, they may choose to stay silent.

Example: Imagine an employee who knows about a colleague stealing company

property but doesn't report it because they're scared of getting into trouble.

Conclusion:

 Unethical behavior at the workplace can have serious consequences, like

damaging a company's reputation, harming relationships, and even legal trouble.

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 Ethical behavior, on the other hand, helps create a positive and trustworthy
work environment where everyone can thrive.

Remember: Doing the right thing at work, even when it's tough, is not just about
following rules – it's about building a workplace where people can trust each other and
feel proud of what they do.

Characteristics of Good Work Ethics

Introduction:

 Good work ethics are the moral principles that guide our behavior in the
workplace. They are the foundation of a successful and fulfilling career.

 Ethics at work is like a compass that guides us to do the right thing, even when
no one is watching.

 These characteristics are not just about following rules but about building trust,
respect, and a positive work environment.

Characteristics of Good Work Ethics:

1. Honesty and Integrity

Explanation: Honesty means being truthful and sincere in your actions and words.
Integrity means doing what's right, even when it's challenging.

Example: Imagine you discover an error in your expense report that resulted in a
financial gain for you. Good ethics dictate that you promptly report the mistake and
repay any excess funds. This demonstrates honesty and integrity, building trust with
your employer and colleagues.

2. Responsibility and Accountability

Explanation: Being responsible means fulfilling your duties and obligations effectively.
Accountability involves owning up to your actions and their consequences.

Example: If you're a project manager, it's your responsibility to ensure tasks are
completed on time. If a task falls behind schedule, taking accountability means
acknowledging the delay, identifying solutions, and communicating with your team and
superiors to find a resolution.

3. Respect for Others

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Explanation: Respect involves treating everyone in the workplace with consideration

and valuing their opinions and contributions.

Example: A co-worker may have a different cultural background or perspective.

Respecting them means actively listening to their ideas, providing constructive
feedback, and avoiding discrimination or bias based on personal characteristics.

4. Professionalism

Explanation: Professionalism encompasses acting and dressing appropriately, being

punctual, and maintaining a positive attitude.

Example: Dressing professionally for your workplace demonstrates respect for the
organization and colleagues. Being punctual for meetings and maintaining a positive
attitude even in challenging situations showcases professionalism.

5. Teamwork and Collaboration

Explanation: Teamwork is the ability to work effectively with others, share ideas, and
support your team members.

Example: In a project team, collaboration is essential. Sharing ideas, offering help to a

colleague facing a challenge, and valuing diverse perspectives contribute to a strong
team dynamic, leading to better project outcomes.

6. Adaptability and Flexibility

Explanation: Adaptability involves being open to change and willing to adjust to new
circumstances. Flexibility means being able to modify your approach when necessary.

Example: Suppose your company adopts new software for project management. Being
adaptable means embracing the change, learning the new system, and adjusting your
workflow accordingly to improve efficiency.

7. Communication Skills

Explanation: Effective communication involves clearly expressing ideas, actively

listening, and providing constructive feedback.

Example: In a team meeting, effective communication means expressing your thoughts

clearly, listening attentively to others, and offering constructive suggestions. This
ensures everyone is on the same page and leads to better decision-making.

8. Work-Life Balance

Explanation: Achieving a balance between work and personal life is crucial for well-
being and prevents burnout.

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Example: Striking a work-life balance might involve setting boundaries, taking regular
breaks, and making time for family, hobbies, and self-care. This balance ensures you
remain productive and healthy.

9. Self-Motivation

Explanation: Self-motivation means setting goals, staying focused, and working toward
them without needing constant supervision.

Example: Setting personal and professional goals, such as improving your skills or
completing a project ahead of schedule, demonstrates self-motivation. It helps you stay
driven and contributes to career growth.

10. Continuous Learning

Explanation: Continuous learning involves staying updated in your field, acquiring new
skills, and seeking opportunities for personal and professional development.

Example: Attending workshops, conferences, reading industry publications, and taking

online courses are examples of continuous learning. This commitment to growth
ensures you remain competitive and adaptable in your career.

Conclusion:

 Good work ethics are the cornerstone of a successful and fulfilling career.

 By embracing these characteristics, you not only contribute to a positive work

environment but also enhance your own professional growth and opportunities.

 Remember, building good work ethics is a continuous journey that leads to

personal and professional success.

Key Takeaway: Developing and practicing good work ethics is not just about being a
better employee; it's about being a better person who adds value to their workplace and
society as a whole. These characteristics are the keys to personal and professional
excellence.

Code of Conduct
A company's code of conduct is a set of guidelines developed for a company's employees that
protect the company while also informing the employees of the company's expectations. It
distinguishes one organization from the other. Small and large businesses need to prepare a
document that contains vital information about employee expectations. In this article, we explain
what a code of conduct is, discuss why it is essential, and explore the types of codes of
conduct.

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Related: What Are Business Ethics? Definition, Overview, and Examples

What is a code of conduct?

A code of conduct, also known as privacy and code of conduct, is a defined set of rules,
principles, values, employee expectations, behaviours, and relationships that a business
considers important and believes necessary for its success. You can find the code of conduct
for an organization in its employee handbook. Human resources may also provide new
employees with training materials to assist them in learning the code.

A code of conduct lists the principles and ideals that distinguish a company, with some more
relaxed than others. An organization's code of conduct reflects on the organization's culture and
creates a message that all employees and other stakeholders can use for reference.

Why is a code of conduct necessary?

While the term "code of conduct" is commonly used to describe this written agreement and its
set of expectations, some companies refer to it as "code of business ethics," "code of ethical
business conduct," or "code of ethics and standards." The code of conduct provides a
foundation for ethical decision-making within the company. Businesses use it as a
communication tool that informs different stakeholders about an organization, its employees,
and its management's values. Here is a breakdown of some reasons a code of conduct is
essential:

It provides guidelines for behaviour

Employees can figure out what behaviours are appropriate for work with a clear set of rules and
expectations. Through the code of conduct, employees have a better knowledge of corporate
regulations, making life easier for everyone concerned. This allows them to form stronger bonds
with their coworkers and operate more productively together.

It illustrates the company's values

People can be interested in learning more about a company for various reasons. For example,
potential candidates, clients, or stakeholders can discover more about a business's ethics,
values, and morals by visiting the website. Having a shared understanding of these factors
improves the working environment for employees while promoting the company's core values,
attracting more customers. As a result, the code of conduct lays out how employees, customers,
partners, and suppliers can expect to be treated.

Related: What are Company Values? (With How-To, FAQs, and Examples)

It boosts employee morale

It's important to remember that a company's values are its code of conduct. Employees who
treat one another fairly and respectfully are more likely to be satisfied with their jobs. Employers
may keep and recruit more personnel because of this.

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It determines employee success

Employers who have a code of conduct can better gauge their employees' success. Employers
can discuss all the workplace standards in their policies. If an employer notices an employee is
not adhering to the code of conduct, they can specify what they need to work on.

It ensures adherence to the law

An organization addresses issues like harassment in the workplace through a code of conduct.
Employees can see information about federal and provincial laws, like health and safety and
confidentiality, by referencing the company's regulations. This is an essential document for both
employees and employers in case of legal troubles.

TYPES OF CODES OF CONDUCT

An employer's employee handbook may include several sorts of codes of conduct, including
these five principles:

 integrity

 objectivity

 competence

 confidentiality

 professionalism

Aspects of the workplace that a code of conduct addresses

From these five pillars, we address a code of conduct in almost every aspect of the workplace,
including:

 discrimination
 work environment
 cell phone use
 conflicts of interest
 dress code
 company assets
 substance abuse
 anti-bribery and corruption
 internet use
 attendance and punctuality
 communication
 absence without notice
 misconduct
 leave notice
 authority
 harassment
 plagiarism
 bullying and abuse
 company resources

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Related: Work Ethic and Success in the Workplace

Code of conduct best practices

Employers can consider the well-being of all of their employees when writing their codes of
conduct. Everyone in the office will feel appreciated and treated fairly in this manner. A good
code of conduct can aid in the development of a positive business culture, which leads to happy
employees. When formatting a code of conduct, use these points to guide you:

 Avoid technical jargon and write for the reader

 Consider all the specifics that you can include in the code of conduct

 Make it thorough and answer questions that may arise

 Ensure all employees and other stakeholders have easy access to it

 Design the document to match the company's branding and make it simple to
understand

 Be inclusive regardless of race, gender, and age

Related: How To Talk About Race, Gender and Social Issues at Work

Code of conduct Examples

Here are a few examples taken from various companies' codes of conduct that highlight the
different sections that a code of conduct contains:

Privacy, security, and freedom of expression

Always keep in mind that we're asking people to put their trust in us with their sensitive data. To
keep that trust, each of us must respect and safeguard the privacy and security of that
information. Our security protocols place strict restrictions on who has access to and uses users'
personal data and require us to secure user information from unauthorized access. Understand
your obligations under these procedures; gather, use and access user personal information only
as permitted by our security policies, privacy policies, and data protection laws.

Workplace health, safety, and security

Partners may observe all safety rules and practices, cooperate with officials enforcing these
rules and procedures, and take all required precautions to safeguard themselves and other
partners. They must also complete safety training and report any accidents, injuries, or
dangerous activities or conditions. To strengthen workplace security, you may be familiar with
and follow any work safety information and training provided to you.

Drugs and alcohol

We have a clear attitude on substance abuse: it is harmful to our employees' health and safety
and we do not accept it. Our workplaces do not restrict the consumption of alcohol. Still, you
may use caution and never drink in a way that affects performance, causes improper behaviour,

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endangers the safety of others, or breaks the law. Using illegal substances in our workplace or
at sponsored events is strictly forbidden. Assume a manager has reason to believe that an
employee's usage of drugs and alcohol is hurting their job performance and the safety of others
at work. In that instance, the manager can ask for an alcohol or drug test.

Conflicts of interest

We must all avoid potential conflicts of interest. When a personal interest or activity interferes
with or appears to interfere with the tasks you perform or owe to our company, you have a
conflict of interest. Even the most ethical individual can be influenced unknowingly by a conflict
of interest. The mere appearance of a conflict can cause a partner's actions or integrity to be
questioned.

Potential conflicts of interest must be brought to attention through the partner's manager or the
vice president in charge of the partner's department or business unit, who will contact the chief
ethics and compliance officer, besides the yearly report. Disclosure can be made directly via
Business Ethics and Compliance if the partner prefers.

Related: What Is a Conflict of Interest? (Definition and Examples)

Compliance with laws and regulations

We are committed to abiding by all applicable laws, rules, and regulations in the countries
where we operate. When performing your duties, you must follow all applicable laws, rules, and
regulations. If you believe there is any discrepancy, or if you have a question about the legality
of your or your partners' actions, you can consult with a manager or other party via our
complaints and concern channel.

FREQUENTLY ASKED QUESTIONS:

Are codes of conduct required by law?

Companies aren't required by law to adopt codes of conduct in most cases. Some laws exist
that mandate that companies with publicly listed shares declare their codes of ethics. They must
also make any updates or modifications to their codes of conduct public.

Where can I find a company's code of conduct?

For some companies, finding this document is as easy as searching for it on a computer. Some
private companies don't have their codes of conduct as accessible. Most employees receive a
copy within their first week with a new company. The code of conduct is usually in the employee
handbook, with other policies and procedures.

Related: Employee Handbook: Definition, Importance and Sections

Are codes of conduct and codes of ethics the same?

No, they are not the same. The significant distinction between a code of ethics and a code of
conduct is that the former is a set of principles that influence judgment. The latter is a collection
of instructions that impact employee behaviour.

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