Ten Benefits of Having an Ethics Code

 

“The single measure that would most improve corporate governance is the establishment by senior management of an ethical business culture.”
– 2003 survey of corporate directors and general counsel

Companies should have ethics codes to promote ethical behavior – not to enhance productivity, profits or public relations.  Still, a sound, well-administered code can benefit a company and its stakeholders in a variety of ways.  It can:

  1. Guide employees in situations where the ethical course of action is not immediately obvious.
  2. Help the company reinforce – and acquaint new employees with – its culture and values.  A code can help create a climate of integrity and excellence.
  3. Help the company communicate its expectations to the staff to suppliers, vendors and customers.  Also, by soliciting feedback and questions, a company can use the code to encourage frequent, open and honest communication among employees.
  4. Minimize subjective and inconsistent management standards.  A code explicitly outlines the rights and responsibilities of staff members and helps guard against capricious and preferential treatment of employees.
  5. Help a company remain in compliance with complex government regulations.  The landmark Sarbanes-Oxley Act of 2002 requires public companies to have an ethics code for senior financial officers.
  6. Build public trust and enhance business reputations.  Also, a code helps demonstrate the company’s values to socially responsible investors.
  7. Offer protection in preempting or defending against lawsuits.
  8. Enhance morale, employee pride, loyalty and the recruiting of outstanding employees.
  9. Help promote constructive social change by raising awareness of the community’s needs and encouraging employees and other stakeholders to help.
  10. Promote market efficiency – especially in areas where laws are weak or inefficient – by rewarding the best and most ethical producers of goods and services.

Adapted from  Good Ideas for Creat a More Ethical and Effective Workplace

Please follow and like us:

Related Posts

Comments 11

  1. Thanks for a marvelous posting!I seriously enjoyed reading it, you
    may be a great author.I will make sure to bbookmark your blog and will often coime back in the future.
    I want to encourage you to ultimately continue your gret job,
    havve a nice day!

     
  2. hey there and thank you for your information ? I’ve definitely picked up anything new from right here. I did however expertise several technical issues using this site, since I experienced to reload the website many times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that

     
  3. hello there and thank you for your info ? I have definitely picked up something new from right here. I did however expertise several technical issues using this website, as I experienced to reload the site lots of times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that

     
  4. I am complaining, but sluggish loading instances times will very frequently affect your placement in google and could damage your high-quality score if ads and marketing with Adwords. Anyway I am adding this RSS to my email and could look out for much more of your respective exciting content. Ensure that you update this again soon.

     
  5. You’ve been working hard lately. All that stress has got to be eating at you. Why not take a break and enjoy some cam girls? There’s plenty of them to enjoy at http://www.camgirl.pw It’s wall to wall babes at this site. You’ll know that right away after your first visit.

     

Leave a Reply

Your email address will not be published. Required fields are marked *