Business Omm 640
Ethical and Moral Conduct
Lester Gonzalez
OMM640: Business Ethics and Social Responsibility
Dr. Ronald Beach
July 28, 2013 A code of ethics is important because it provides individuals within a group, organization, club or society with a set of rules, standards and guidelines to operate within. When employees don't have a code of ethics, they could engage in less-than-socially acceptable behavior. This can establish a bad reputation for an organization. When people don't obey the code of ethics it can tarnish their representative's as well as the group's or organization's reputations. This can diminish their standing in the community and have an unhealthy affect on business and sales Business organizations often develop several different policies, rules and guidelines for governing their operations. While home-based or sole proprietorship businesses usually require fewer policies, larger organizations use these guidelines to manage employee behavior. A code of ethics is a common organizational policy used in business organizations. The code of ethics policy usually sets the minimum standards for business owners, managers and employees to follow when completing various business functions. In a small business, a code of ethics is usually based on the business owner’s personal morals or values. As the business grows and expands, the ethical values can be implemented into the business' organizational mission or values statement. This statement helps provide companies with a compass to guide the organization through the business environment. Companies often refer to the mission or values statement when guidance is needed regarding questionable situations. A code of ethics can help companies improve business relationships. Ethical values are often designed to provide guidance when working with other companies and the general public. These values dictate how businesses handle contract negotiations, customer questions and feedback
Lester Gonzalez
OMM640: Business Ethics and Social Responsibility
Dr. Ronald Beach
July 28, 2013 A code of ethics is important because it provides individuals within a group, organization, club or society with a set of rules, standards and guidelines to operate within. When employees don't have a code of ethics, they could engage in less-than-socially acceptable behavior. This can establish a bad reputation for an organization. When people don't obey the code of ethics it can tarnish their representative's as well as the group's or organization's reputations. This can diminish their standing in the community and have an unhealthy affect on business and sales Business organizations often develop several different policies, rules and guidelines for governing their operations. While home-based or sole proprietorship businesses usually require fewer policies, larger organizations use these guidelines to manage employee behavior. A code of ethics is a common organizational policy used in business organizations. The code of ethics policy usually sets the minimum standards for business owners, managers and employees to follow when completing various business functions. In a small business, a code of ethics is usually based on the business owner’s personal morals or values. As the business grows and expands, the ethical values can be implemented into the business' organizational mission or values statement. This statement helps provide companies with a compass to guide the organization through the business environment. Companies often refer to the mission or values statement when guidance is needed regarding questionable situations. A code of ethics can help companies improve business relationships. Ethical values are often designed to provide guidance when working with other companies and the general public. These values dictate how businesses handle contract negotiations, customer questions and feedback
References: Ethics Resource Center, "Why Have a Code?" http://www.ethics.org/whycode.html. Ethics Resource Center, "Why Wasn 't Enron 's Code of Conduct Enough?" http://www.ethics.org/nr0318enron.html. Gap Inc., "Beyond the Label: Gap Inc. 's Commitment to Ethical Sourcing," http://www.gapinc.com/social%5fresp/sourcing/%5fBeyond%5fth e_Label.pdf. Institute of Business Ethics, "Eight Steps for a Company Wishing to Develop its Own Corporate Ethics Programme," http://www.ibe.org.uk/code.htm. McDonald, Chris, "Guidance for Writing a Code of Ethics," http://ethicsweb.ca/codes/coe3.htm. McNamara, Carter, "Complete Guide in Ethics Management: An Ethics Toolkit for Managers," http:/www.managementhelp.org/ethics/ethxgde.htm. PR Newswire. "Recovery in Our Capital Markets Linked to Ethics and Trust, Says Deloitte & Touche CEO Copeland," August 16, 2002. Salant, Jonathan D., " 'More Corporations Teaching Ethics," AP Online, Oct. 30, 2002. White, Thomas I., "Ethics Incorporated: How America 's Corporations are Institutionalizing Moral Values," http://www.ethicsandbusiness.org/toolbox/corpethics.htm