Explain the main advantages for an organisation after the introduction of a code of ethics
Answers
Having a sound code of ethics for your business or organization isn’t simply a good idea from a moral perspective. It also helps you build trust and credibility among your stakeholders, and enhances your overall brand.
Good Ethics Helps Sales
Regardless of what you sell, you’re in business to make money. Probably the top advantage to having and adhering to a code of ethics, then, is that good ethics matter to your customers. Consumers are more likely to purchase and stay loyal to companies they feel they can trust. That’s why you should create and promote an ethical organization. And it helps to have those ethical principles codified for everyone in and outside of your company to see and understand.
Everyone Adheres to the Same Rules
Isn’t it great when everyone knows what’s expected of them? From the very top of the company, people sitting in the executive suite, to the lowest member of the team, when your organization has a written code of ethics, everyone can work from the same playbook. That goes for contractors and consultants, as well. A code of ethics supports your overall mission and helps define who you are as a company.
Tech giant Apple has clearly defined principles of ethical behavior based on honesty, respect, confidentiality and compliance. The company promises to conduct “business ethically, honestly, and in full compliance with applicable laws and regulations.” Its written code of ethics means that not only do all Apple employees and affiliates need to behave in a certain manner – external stakeholders expect it.
Speaking Truth to Power
When you have documented rules of behavior, your employees will be more willing to report any ethical sidesteps to you or your HR department. You want to hear news – even if it’s bad – so you can fix problems before someone does long-lasting harm to your organization. Harvey Weinstein’s alleged bad behavior went unchecked for years, but ultimately led to his downfall and what has had a dramatic and negative impact on the company he co-founded with his brother: Miramax.
Affirming Social Responsibility
In the best scenario, the good you do as an organization with sound ethical principles can reverberate beyond just sales and profits and bottom-line results. When you lead by good example, others may follow suit. So when you declare that part of your ethical code of conduct is to give back to the community, you could set the wheels in motion for many others to do the same. Wow!
Accountability and Recourse
What happens when your best-of-intentions code of ethics is ignored? There are consequences. Having written documentation about the behavior expectations of people within your organization means that when they don’t measure up, you get to dismiss them for cause. It means when a fellow employee feels the rules are not being followed, he or she has legal recourse to redress grievances. Putting it in writing makes it real. What are you going to include in your ethical code of conduct?