Importance of establishing ethical standards
Answers
Explanation:
A code of ethics is important for businesses to establish to ensure that everyone in the company is clear on the mission, values and guiding principles of the company. ... Create each section of your code of ethics with a specific purpose to develop the company culture you desire.
Answer:
A code of ethics is important for businesses to establish to ensure that everyone in the company is clear on the mission, values and guiding principles of the company. It provides employees with a framework of which rules exist, from a regulatory and law-enforcement standpoint and how to act in the gray areas of value-based ethics that aren't always clear. Create each section of your code of ethics with a specific purpose to develop the company culture you desire.
At a minimum, ethical behavior entails following the law. Many ethical issues boil down to legal issues. While many business owners don't feel the need to tell employees to follow the law, it is important that the code of ethics addresses it. The reason it is important to address in your code of ethics is that employees might not think what they do will affect their job status.
Regulatory issues are also legal issues but have more to do with processes and procedures than actually breaking the law. For example, privacy policies require keeping client information confidential and secure. That is a regulation. Stealing the customer's identity goes beyond violating the regulatory portion, it breaks the law.
When defining regulatory issues in your code of ethics, state what the regulations are and how the company expects employees to maintain ethical practices in that area.
Ethical behavior can go beyond the minimum required by laws and regulations. Value-based ethics get to the heart of your corporate culture. It defines how you want your business to be seen by the community. It establishes a component of your brand beyond your product or service.
The last component of a code of ethics you need to address is the level of professionalism you expect from employees. This could include integrity, honest sales practices and respectful conduct to co-workers. You can also include dress code, desk organization and general office conduct rules. Where one business might not be concerned with men wearing a tie to the office, a financial services company might. Consider your professional standards and outline them, so that there is no confusion in the office.
Your company code of ethics should certainly stress the importance for all employees to engage in ethical behavior. But it can do more. It can also offer guidance for steps employees can take if they become aware of behaviors that do not live up to the company's ethical standards and policies. These can range from simple one-on-one conversations reminding employees of the ethical code to formal reporting mechanisms for something considered a serious lapse in ethical behavior.