Business Code of Ethics

Business Code of EthicsLets Define a Code of Ethics..A code of ethics is a formal document rather than merely an "environment," an "understanding," a consensus, "unwritten rule," or just an aspect of "corporate culture." It is at minimum a published document. In many organizations 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 of corporate values, and general policies relating to operationsEvery code of ethics is different and should reflect the company's ethos, values and business style. Some codes are short, setting out only general guidelines, and others are large manuals, encompassing a huge variety of situations.As an example..KraftThe Kraft code of ethics contains just 10 short rules of ethical behavior that all employees must follow. The introduction to the Kraft code of ethics suggests that employees should let values guide their actions in all cases. The code also stresses that if something seems wrong, it should be addressed directly. The code includes a speaking-up policy that requires employees to speak up if they are aware of any violations of the code, even those they have committed themselves. The 10 rules are: 1. Make food that is safe to eat 2. Market responsibly 3. Treat people fairly 4. Respect the free market 5. Compete fairy 6. Respect the environment 7. Deal honesty with the government 8. Keep honest books and records 9. Never trade on inside information 10. Give Kraft Foods your complete business loyalty.

Colgate-PalmoliveThe Colgate-Palmolive code of ethics is a long document, but is broken down into individual areas of conduct. The code is intended as a guide to all daily business interactions and is used in conjunction with the company's business practice guidelines. The code covers 10 areas, including: Our Relationship with Each Other; Our Relationship with the Company; Our Relationship with Consumers; Our Relationship with Government and the Law; Our Relationship with Society and Our Relationship with the Environment.

Codifying ethical standardsFour key decisions in code designPurpose Objective, aim?Format Values or rules?Content Components?Implementation From paper to practice?

What purpose should the Code serve?

Decision 1: Purpose of the CodeVarious considerationsPrevents unethical behaviorPromotes ethical behaviorProvides guidance in ethical decision-makingPromote reputationPacify stakeholdersWhat should be the format of the Code?

Decision 2: Format of CodeASPIRATIONAL DIRECTIONALPositivesshortrecallablediscretion

Negativesvague?enforceability?Positivesspecificenforceablesanctions

Negativesdiscretion?recallability?

IntegratedValues & rulesWhat categories of content should be included in the code?

RationaleValuesGuidelines for conductGuidelines for ethical-decision makingSanctionsResources and references

Decision 3: Content of the CodeDecision 4: Implementation of Code Without proper consideration to implementation, the Code will remain mere words on paperPlanning for implementation to start before Code completion

Thats AllThank You!!