Evaluation of a business code of ethics
Evaluation of a Business Code of Ethics
Professor Amy Peterson
The purpose of this paper is to review and systematically analyze the Code of Ethics of ExxonMobil.
Evaluation of a Business Code of Ethics
Business code of ethics is defined by Businessdictionary.com as “written guidelines used by an organization to set the standards for employees and managements conduct and behavior”. (“Businessdictionary.com”, 2013)The purpose of this paper is to research a chosen companies Code of Ethics (in this case ExxonMobil) and explore how the Code of Ethics effects and is used by employees, Managers, and members of the Board of Directors (as well as the Board as a whole). General information about ExxonMobil
ExxonMobil’s history began in 1870 when John D. Rockefeller and partners formed the Standard Oil Company of Ohio. 12 years later (in 1882), Standard Oil Company of New Jersey and Standard Oil Company of New York (the chief predecessors of Exxon and Mobil) were incorporated. Gasoline began to outsell kerosene, and in 1920 the growth of the automotive market resulted in the Mobiloil trademark. Another landmark in this companies history includes the use of Mobiloil on the first solo flight across the Atlantic in 1927 by Charles Lindbergh. World War II temporarily slowed down the expansion of the Mobiloil between 1939 and 1945; however, there was a post war boom and rebuilding efforts that restarted the companies growth and development. The company was once again derailed by an oil embargo in the 1970’s. The 1980’s through 1999 were years of advancements in technology and innovations; these advancements had a positive effect on shareholder value and reduced operating costs. In 1999, Exxon and Mobil signed a definitive agreement to merge and form a new company called Exxon Mobil Corporation. (http://www.cah.utexas.edu/collections/exxonmobil_timeline.php) Mission statement of ExxonMobil
To summarize the mission statement of ExxonMobil (as stated on their website), they are dedicated to being the number one choice for petroleum and petrochemicals. They are very well aware of the trust the shareholders have placed in the company and are dedicated to showing them financial growth. They are aware of how important their customers are and remain devoted to being aware of and satisfying the consumers changing needs. ExxonMobil is committed to being a “good corporate citizen” globally. ExxonMobil also acknowledges how valuable and important their employees are to their relevance and growth in a competitive market (http://corporate.exxonmobil.com/en/investors/corporate-
ExxonMobil uses an ends-driven ethical system
ExxonMobil is focused on safety, growth, and customer excellence; to that end their Code of Ethics is based on an ends-driven ethical system. This system is rooted in doing good and right by both consumers and employees. It focuses on the actions rather than the results (Trevino 2007). The code itself relates that there will be consequences to employees who are focused on results without consideration of the ethical code or laws.
How, when, and why the Code of Ethics is used
The policy of Exxon Mobil Corporation complies with “all governmental laws, rules, and regulations applicable to its business”. The corporation goes a step farther in choosing a stricter course by maintaining an even higher degree of integrity than required by the law. The policy also recognizes that, as a global company, there will be cultural differences and customs and that they should be acknowledged and respected. All employees should interact respectfully and fairly with each other and with customers, suppliers etc. Integrity is valued and “employees who achieve results at the cost of violation of law” or...
References: BusinessDictionary.com (2013). Retrieved from http://www.businessdictionary.com/definition/code-of- ethics.html
Farfan, Barbara ExxonMobil Mission Statement - A Money Mission With Profit-Centered Principles Retrieved from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission- Statements/ExxonMobil-Corporation-Mission-Statement.htm
Retrieved from University of Texas at Austin website @ http://www.cah.utexas.edu/collections/exxonmobil_timeline.php
Retrieved from Exxonmobil website @ http://corporate.exxonmobil.com/en/investors/corporate- governance/code-of-ethics-and-business-conduct/our-code
Retrieved from Exxonmobil website @http://exxonmobil.com/Benelux-English/about_ethics.aspx
Trevino, L.K., and Nelson, K.A. (2007). Managing business ethics; straight talk about how to do it right (4th ed.) Hoboken, NJ: Wiley.
University of Florida, Interactive Media Lab. (2002). Effective Crisis Management. Retrieved from http://iml.jou.ufl.edu/projects/Fall02/Susie/exxon.htm
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