Redefining business thics
According to Business Network, the code of conduct is defined as "a statement and description of required behaviors, responsibilities, and actions expected of employees of an organization or of members of a professional body." Business ethics are principles of morality laid down by an organization for ensuring corporate responsibility, quality assurance and customer satisfaction. In a competitive business world, the code of conduct and business ethics, together, create excellence, accountability and transparency.
Written Framework
Some organizations have verbal principles that act as a guiding framework for motivating and regulating the employees, in addition to providing a focus for achieving the business goals. Most of the multinational corporations and large non-profit organizations have a written framework, which an employee can refer to in case of doubt or confusion. A written code of conduct and business ethics acts as a rigid set of laws that must be abided by all members of the organization to perform good business practices.
Constituents
A code of conduct and business ethics for an organization should have two sections: an aspiration section and a rules section. The aspiration section highlights the mission, vision, short-term goals, long-term goals and strategies for achieving them in a stipulated time period. The rules section emphasizes the principles laid down by the organization, which the employees have to follow in day-to-day operations. The two sections help the individual employee to work with
zeal and creativity without crossing the boundaries of professionalism.
Enforcement
The organization must enforce its code of conduct and business ethics for ensuring progressive growth and retaining a positive image in the society. According to the International Labor Organization (ILO), the organization must enforce disciplinary measures, such as "counseling, oral or written reprimands, warnings, probation or suspension without pay, demotions, reductions in salary, termination of employment and restitution." These disciplinary acts for enforcing the code of conduct and business ethics apply equally to the violator, the person who does not detect violation, the person who withholds the act of violation, and the supervisor who condones violation.
Example of McDonald’s
The global fast food giant, McDonald’s, has a written Standards of Business Conduct, which outlines the company’s goals and the behavior of its employees as they work in the organization and serve the customers. McDonald’s has posted its code of conduct and business ethics on the company’s website to provide an easy access to its principles among the public. According to McDonald’s 2008 Standards of Business Conduct, the company promises ethical conduct of business activities, delivery of quality and customer satisfaction, and personal accountability of its employees who can be terminated in case of violation. Supervisors and managers oversee the operations and also prevent retaliation against an employee who reports a wrongdoing.
Stakeholders’ Responsibility
It is the responsibility of the stakeholders, including the employees, the supervisors, the Board of Directors, the consumers, the media and the government, to ensure that the code of ethics and business conduct is implemented fairly at all times. To sustain a good corporate image, the stakeholders must work in unison for attaining continuous improvement of quality of products and services.
