What is Code of Ethics?

Code of Ethics is a set of rules about good and bad behavior. It is a guide of principles designed to help
professionals conduct business honestly and with integrity. A code of ethics document may outline the
mission and values of the business or organization, how professionals are supposed to approach
problems, the ethical principles based on the organization's core values, and the standards to which the
professional is held.

Saucer and Sims (2013) offer recommendations for developing Code of Ethics in business organizations:

1. Adopt code of ethics (use the Code of Ethics of other companies as a reference and modify according
to the needs of the company).

2. Offer training on ethics (for management and employees).

3. Hire and foster individuals with ethical value.

4. Deal with immoral activities. Employees must know the implications and effects of making unethical
actions, and should be ready to accept consequences.

5. Take constructive measures. For example, give rewards to employees who admit their mistakes. If the
company is conscientious and smart, it can encourage warehouse workers to take responsibility for their
mistakes and even praise them for coming forward, apologizing and ensuring that a faulty product is not
purchased by the customer. At first it seems counter-intuitive to reward an employee for a mistake, but
in the end, it provides everyone with the best result.

6. Carry out a social audit. Conduct survey to employees once in a while.

7. Cover all whistleblowers. These people detect illegal activities within organizations and disclose the
actions to the authority or managers. A whistleblower who works sincerely, correctly reporting an issue,
should be praised for his/her courage and integrity, as opposed to being disciplined and ostracized. If an
individual blasts the whistle, it is possible that the company itself has failed internally to motivate and
improve fair and ethical conversations.

8. Empower the defenders of integrity. Support those who work with honesty and integrity.

9. Ensure executive commitment. The anonymity of those who report the problems should be practiced.
10.Communicate the principles of conduct within the company and across the industry.

11.Assign an officer who is clearly responsible for the enforcement of ethical standards. He/she can be
consulted for advice.

12.Establish a procedure for violations of ethical standards, and fully review any offenses reported.
13.Ensure high perseverance by the company's board of trustees.

14.Lead by example, above everything else. It should be remembered that when faced with an ethical
situation, the outcome of the decision-making process should be considered.
One way to tackle ethical situations is by using the four-way test to evaluate decisions. This four-way
test consists of asking four questions:

1. Is my decision truthful?

2. Is my decision fair to all who are affected by it?

3. Will this build the organization's goodwill?

4. Will the decision benefit all parties with vested interest in the outcome?

Code of Ethics contains the following:

1. Vision means something that you imagine; a picture that you see in your mind (Merriam-Webster
Dictionary). The vision statement helps to ensure the alignment of the decisions to the company goals.
Example: To make innovations that everyone could access and adapt depending on their needs

2. Values (value means something thought of as important or useful) Values in business help to ensure
that all of the employees work towards the company goals.

Example: We commit ourselves to serve our customers with quality service and utmost respect.

3. Mission- a specific task with which a person or a group is charged (Merriam-Webster Dictionary). The
mission statement clearly and effectively guides the business or the organization in its decision-making.
Example: To inspire all the young athletes of the country… tell them to dream and go for it!

4. Principles- moral rules or beliefs that help you know what is right and wrong and that influence your
actions (Merriam-Webster Dictionary). Examples: Customers have to be respected. Make sure to deliver
quality product.
Code of Ethics aims to lessen conflicting issues as it explains to what degree such conflicts can be avoided
and what parties can do if these conflicts happened. Professionals therefore cannot say that they were
ignorant of the immoral nature of their improper behavior. Often relevant is the possibility of disciplinary
action (e.g. disbarment of a lawyer) which helps minimize unnecessary disagreements or offensive
behavior where a confrontation is imminent or is likely to happen.

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