Reason: Reputation

2002 US Sarbanes-Oxley legislation: introduce code of conduct US companies

Business ethics “industry”: ethics managers, consultants, auditors…

Business ethics management: the direct attempt to formally or informally manage

ethical issues or problems through specific policies, practices, and programmers.

Main components of business ethics management:

 Mission or value statements: Corporate aims, beliefs and values. Social goals.
Substantive ethics managementEffective social mission
 Code of ethics: desired and expected type of conduct of employees- Ethical
point of view
 Reporting/advice channels: Channels for reporting or receiving advice of ethical
dilemmas of employees.
 Risk analysis and management: mitigate or prevent risks. Legal risks and
quantifiable ethical risks (pollution or product liability). Continual development
(human rights violations, corruptions, climate change…)
 Ethics managers, officers and committees: Ethics and Compliance Officer
Association (ECOA) - US. Institute of Business Ethics, European Circle of Ethics
Officers – EU.
 Ethics consultants: environmental consultants. Ethics consultancy firms.
 Ethics education and training: Provide tools to solve ethical dilemmas and
provide the ability to recognize and talk about ethical problems more
accurately. Goals (3).
 stakeholder consultation and partnership
 Auditing, accounting and reporting.

Code of ethics: Voluntary statements that commit org., industries or professions to

specific beliefs, values and actions and/or that set out appropriate ethical behavior for
employees.

Types

 Organizational or corporate codes of ethics

 Professional codes of ethics
 Industry codes of ethics
 Programme or group codes of ethics

Contents of code of ethics

 Define principles that the org. believes in or wants to uphold (General)

 Practical guidelines for employees behavior (Specific)
Global codes of ethics

Respect for core human values, respect for local traditions, context matters when
deciding what is right and wrong.