Corporate ethics is also known as the business ethics. It is majorly a form of professional ethics that looks into ethical matters concerning the business environment. It applies aspects and measures that are relevant to the business conduct of the whole organization and the conduct of the individuals. The company should develop policy statements that should clearly define the ethical principles for its projects. The code of ethics should be followed by each and every member of the organization to maintain a mutual relationship in the organization. Employees and board members should know and follow the code. Failure to do so will result in disciplinary action or even termination of employment.
The Code of Ethics of the Organization
Developing of the code of ethics in the organization could enhance it in serving its employees with passion. This is because there are guidelines on every individual’s right and his function to the organization. The integrity of the employees trust is the most valuable asset to the organization and, therefore, it should be considered as the key to its success. The products, features and services should make the organization a good community, an element that is being admired by many. It should advertise itself through the services it offers to the society (Malcom, 2001). The code of ethics also brings the act of responsiveness and honest in the employees of the organization through them working as a unit.
The code of ethics brings the respect between employees since each and everyone knows his or her part to play hence boosts the co-relation in them. Through the code of conduct the employees get equal opportunity of employment. This prohibits acts of discrimination or any act of harassment within its members. Positive environment as a result of respect and equal opportunity is created in the workplace. Drugs and alcohol are also factors that get catered by in the code of conduct as it surveys on the penalties of drug abuse within its premises. Safe workplace is then emphasized through good conduct and a violence free working environment.
Through the code of conduct, avoidance of conflict of interest is obtained in the organization. When an employee is faced with a potential conflict of interest he should be able to ask himself what the consequences could be to him and the organization as a whole. He should also be able to disclose the relationship or how the manager could react according to the code of conduct. Conflicts of interest usually occur from personal investments, that are due to the employee taking his own investments and so does not get the reliability of his employer. Outstanding employments and invention of members of a given organization also could result to the up rise of the conflict of interest.
The code of ethics also emphasizes on the philosophy of the business. This is by determining the purpose of the company, which is to maximize on shareholder returns and the sacrificing of proceeds to other concerns is infringement of its fiduciary responsibility. Corporate persons are with authorization entitled to the civil rights and liabilities owing to citizens as persons. Financial integrity and monetary responsibility are basic to the organization as a whole as it is based on the reporting of the financial statements of the company. It consists of the money the organization uses and the profits it makes in return. Through the reading or informing of the members of the organization then they are able to identify places that need reinforcement and those that are improving.
The Code of Ethics and Standards of Professional Conduct
Penalties of working against the code of conduct of the organization are also indicated in the code of conduct, so the members get informed on the consequences. The penalties are usually based on the running of the organization and so they are organisation based. Aggregate economy is very important because the analyzing of the companies ratio to its full economic cycle helps it to establish considerable measures for its future. Economic conditions such as recession are then changed through the companies estimate. Then the companies past records are observed and also analysed to find the trends in ratios. The industry norm is a common type of comparison that an analyst looks on the same type of organizations in the same industry to develop an industry average, which is compared to the organization being evaluated (Daniel, 2005).
The code of ethics and standards of professional conduct are essential to the investment and for the public in financial marketing of the organization. The integrity of the profession and the interests of the clients are to be put above the interests of the organization. The code emphasizes on action of the members of the organisation to be of high integrity, competence, and respect.
Suitability is an investment principle that enables the organization to form the basis for it to meet its clients. It mainly emphasizes on the organization to know its clients. The regulations set by the organisation should meet the client`s interest. Due diligence is used to by the organisation to investigate and evaluate business opportunities. Transactions should be based on the future of the organisation. Confidentiality is also a major principle that an organisation should have regarding its investments as it is inconsistent with creating wealth. The organisation should stand firm and make the most appropriate choices towards making its investments. Marketing of the organisation`s services could entirely depend on the good services it offers to its clients.