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Headline:    

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Main Topic keyword:    

Code of ethics

Sub Topic keyword:    

Code of ethics

Topics of your individual article:    

business ✓ statement ✓ ethical ✓ sanctions ✓ including ✓ codes ✓ behavior ✓ law ✓ small ✓ corporations ✓ ethics ✓ corporate ✓ code ✓ employees ✓ conduct

Summary:    

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. Sanctions will be spelled out and their administration defined, including a transparent process for establishing facts, the issuance of warnings, requirements for counseling or reeducation, consequences of repeat offences, on up to discharge or even, if appropriate, litigation. Employees observed morale-destroying behavior such as discrimination and sexual harassment; lying internally, to vendors, customers, and the public; misreporting of time; direct thievery; and other problems.

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<p style="display: none;"> <script type="application/ld+json">{ "@context": "https://schema.org", "@type": "Article", "image": { "@type": "ImageObject", "url": "https://www.artikelschreiber.com/images/logo.png", "width": 531, "height": 628 }, "name": "Article", "url": "https://www.artikelschreiber.com/en/", "description": " ... https://www.artikelschreiber.com/en/", "headline": ".", "dateCreated": "2022-01-23T03:01:33+01:00", "datePublished": "2022-01-23T03:01:33+01:00", "dateModified": "2022-01-23T03:01:33+01:00", "articleBody": "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. The most severe sanction is usually dismissal unless a crime has been committed. Source: https://www.artikelschreiber.com/en/.", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://www.artikelschreiber.com/en/#webpage" }, "publisher": { "@type": "Organization", "@id": "https://www.artikelschreiber.com/en/#organization", "url": "https://www.artikelschreiber.com/en/", "name": "ArtikelSchreiber.com", "description": "Your free SEO text generator | ArtikelSchreiber.com", "logo": { "@type": "ImageObject", "@id": "https://www.artikelschreiber.com/en/#logo", "url": "https://www.artikelschreiber.com/images/logo.png", "width": 531, "height": 628 }, "image": { "@type": "ImageObject", "@id": "https://www.artikelschreiber.com/en/#logo", "url": "https://www.artikelschreiber.com/images/logo.png", "width": 531, "height": 628 }, "sameAs": [ "https://www.unaique.net/" ] }, "keywords": "business, statement, ethical, sanctions, including, codes, behavior, law, small, corporations, ethics, corporate, code, employees, conduct", "author": { "@type": "Person", "name": "ArtikelSchreiber.com", "url": "https://www.artikelschreiber.com/en/", "sameAs": [ "https://www.unaique.net/" ] }, "@id": "https://www.artikelschreiber.com/en/#links", "commentCount": "0", "sameAs": [ "https://www.artikelschreiber.com/", "https://www.artikelschreiber.com/en/", "https://www.artikelschreiber.com/es/", "https://www.artikelschreiber.com/fr", "https://www.artikelschreiber.com/it", "https://www.artikelschreiber.com/ru/", "https://www.artikelschreiber.com/zh", "https://www.artikelschreiber.com/jp/", "https://www.artikelschreiber.com/ar", "https://www.artikelschreiber.com/hi/", "https://www.artikelschreiber.com/pt/" ], "speakable": { "@type": "SpeakableSpecification", "xpath": [ "/html/head/title", "/html/head/meta[@name='description']/@content" ] } } </script> </p><br /><br /> 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. The most severe sanction is usually dismissal, unless a crime has been committed. 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. The Hippocratic Oath, taken by all doctors, does not include the phrase "First, do no harm". The actual language, in the third paragraph of the classical version, states, "I will apply dietetic measures for the benefit of. . . sick according to my ability and judgment; I will keep them from harm and injustice". According to Bartlett's Familiar Quotations, the more famous phrase comes from Hippocrates' Epidemics: "As to diseases make a habit of two things—to help, or at least, to do no harm". It is at minimum a published document. In many organisations employees are also required to sign a statement to the effect that they have read and understood it. 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 ofcorporate values, and general policies relating to operations. 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 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. 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. A corporation's code of conduct may explicitly refer to professional standards and standard-setting bodies. 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. The groups named above constitute the "stakeholders", those who have a stake in the well-being of the business. Codes of ethics may also specifically address areas of difficulty such as campaign contributions or compliance with specific laws. Within subdivisions, the code may specify categories of problems like conflicts of interest; taking or offering bribes, gifts, favors, etc. The US Securities and Exchange Commission (SEC) has released a new set of codes of ethics for the financial services industry. The new codes will cover a wide range of issues, including rules relating to information such as disclosures, withholding data, insider trading, and so forth, preferential treatment, discrimination, interpersonal relations including sexual harassment and resolving quality versus cost conflicts. Sanctions will be spelled out and their administration defined, including a transparent process for establishing facts, the issuance of warnings, requirements for counselling or reeducation, consequences of repeat offences, on up to discharge or even, if appropriate, litigation. Ombudsmen may be named. The simplest code will require reporting of code infractions up the management chain. A code of ethics without sanctions and a rational process for its implementation will be viewed by employees as merely a gesture without "teeth". However, sanctions such as firing an employee may be problematical unless the business has an "employment at will" hiring and firing policy and its exercise is backed by state and federal law. Observation and studies show that ethical behavior is efficient. Only 34% of employees in organizations with "strong" ethical culture did so. Employees observed morale-destroying behavior such as discrimination and sexual harassment; lying internally, to vendors, customers, and the public; misreporting of time; direct thievery; and other problems. A Google search on the phrase "code of ethics" yielded 17,900,000 hits in January 2006, a Yahoo search 12,000,000. A small business owner can easily write a one-page code and distribute it to employees if he or she sees the need for this. A code of ethics may be easy to produce and serve an important purpose: to underline the owner's commitment to ethical behavior. Many very small businesses of 10 to 20 employees operate more like families. Ethical behavior is part of the culture—as it is in a family. Discussion of the matter in a staff meeting may serve the purpose better: to alert employees to this issue and what is happening "out there".
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