David B. Dykstra
BUS-503 – Prof. James Fyock
In order to operate ethically in a global marketplace, corporations like Exxon Mobil need to define the conduct that they expect from their officers, executives, managers and employees. Without a defined code of conduct, employees feel forced to use their personal mores to determine what actions they should take in ethically ambiguous situations. Like children on a playground, employees need to know where the fences are so that they can work effectively.
The Eight Principles
In order for the directors and executives in any company to know that their employees are acting in an ethical manner, they need a defined code of conduct that lays out the boundaries and freedoms for each employee. Creating this code requires a framework around which the tenants of the company can be developed and expanded to fill the ethical standards and expectations. The Global Business Standards Codex (GBSC) lists the eight underlying principles that provide a basis for evaluating and interpreting ethical behavior (Stanwick & Stanwick, 2009). By using these principles, a company’s directors and executives can determine if they are considering all ethical aspects in their code of conduct.
The fiduciary principle states that the officers, executives, and employees of a company have a fiduciary duty to act in the best interest of the company and for the company's benefit at all times. The effective use of this principle prevents conflicts of interest by ensuring that employees will not place their own interests above the company's best interests. This principle also ensures the company's employees will do their best to fulfill their responsibilities and be financially responsible with company’s assets. Employees should also demonstrate a sense of loyalty to the company, perform their daily work with all due diligence, and report any ethical or legal violations
References: Blocher, M. B. (2013, March 22). BUS-503 Reading, Day 5. Retrieved April 1, 2013, from https://moodle.cornerstone.edu/mod/page/view.php?id=43032 Our Guiding Principles (n.d.). In ExxonMobil. Retrieved May 4, 2013, from http://www.exxonmobil.com/Corporate/about_who_sbc.aspx Stanwick, P. A., and Stanwick, S. D. (2009). Understanding Business Ethics (Vols. 1 - 1, pp. 8-12). Upper Saddle River, NJ: Pearson Education, Inc. Tillerson, R. W. (2011, November). Standards of Business Conduct. In ExxonMobil. Retrieved May 1, 2013, from http://www.exxonmobil.com/Corporate/Files/Corporate/sbc.pdf