Codes of ethics.Introduction In the context of concern about high profile cases of dishonest or even corrupt business conduct, it is increasingly important for companies to demonstrate their commitment to ethical and sustainable business A business is sustainable if it has adapted its practices for the use of renewable resources and holds itself accountable for the environmental and human rights impacts of its activities. principles. The introduction of a code of ethics Code of Ethics can refer to:
All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. , such as customers and suppliers, that unethical unethical said of conduct not conforming with professional ethics. practices will not be tolerated. Ultimately, this will contribute to the organisation's reputation and inspire public confidence. But a code of ethics must be more than a piece of paper. It is vital for it to be a true reflection of the organisation's culture and practice. This will require careful consultation and preparation, and the involvement of employees at every level. National Occupational Standards for Management and Leadership This checklist has relevance to the following standards: B: providing direction, unit 8 Definition A code of ethics is a statement of the core values of an organisation and of the principles which guide the conduct and behaviour of the organisation and its employees in all their business activities. Action checklist 1. Secure the commitment of top management Without the absolute and public commitment of top management, a code will not be taken seriously by employees. Commitment needs to be seen and felt. A senior person who is prepared to champion the initiative and drive it forward will be a key factor in its success. 2. Gain organisational agreement on the primary purpose of the code Is the code mainly for the benefit of employees, or is it aimed at those with a stake in the organisation, such as non executive directors, shareholders or even customers? Be clear about the major objectives and the changes that a code may imply--from a shift in culture to an openness to whistle blowing. 3. Identify and define existing statements of values Consult any existing codes of practice, policy memoranda and founding statements within the organisation, and involve managers and employees in their evaluation. Check legal guidelines and review any available standard codes such as those published by the Institute of Business Ethics business ethics, the study and evaluation of decision making by businesses according to moral concepts and judgments. Ethical questions range from practical, narrowly defined issues, such as a company's obligation to be honest with its customers, to broader social and the Chartered Management Institute Inspiring Leaders The Chartered Management Institute is a professional institution for managers, based in the United Kingdom. In addition to supporting its members, the organisation encourages management development, carries out research, produces a wide variety ), and the codes of other organisations operating in a similar context. 4. Consider what specific issues need to be covered Consult with employees at all levels about issues specific to your organisation or area of operations An operational area defined by the joint force commander for land and naval forces. Areas of operation do not typically encompass the entire operational area of the joint force commander, but should be large enough for component commanders to accomplish their missions and protect their , especially where these give rise to concerns, or are particularly sensitive. Gain a consensus about your organisation's traditions and unwritten LAW, UNWRITTEN, or lex non scripta. All the laws which do not come under the definition of written law; it is composed, principally, of the law of nature, the law of nations, the common law, and customs. rules. 5. Prepare a draft code While drafting a code is best achieved through a small group, it should be a dynamic process, so don't exclude comments or input from employees at any level. The following should be included: * an introduction explaining the purpose of the code, why it is needed, and expectations about how it will be used * a clear definition of the organisation's mission, objectives and values * guidance on handling relations with all stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. groups: employees, shareholders, customers, suppliers, and the wider community for example. * expectations about acceptable behaviour * operating principles, with realistic examples * a formal mechanism for resolving employee questions. 6. Circulate the draft widely and take comments seriously Consultation should be wide and feedback and comments should be sought. This will have the additional benefit of raising awareness Raising awareness is a common phrase advocacy groups use to justify a particular event, brochure or even the entire organization. Raising awareness refers to alerting the general public that a certain issue exists and should be approached the way the group desires. of the code. If a significant amount of revision is necessary, then a further circulation should follow. 7. Ensure that the code is clear and understandable The code needs to be 'user-friendly' in appearance and written in plain language without excessive use of jargon, buzz words buzz word Noun Informal a word, originally from a particular jargon, which becomes a popular vogue word buzz word n → palabra que está de moda or legalese legalese - Dense, pedantic verbiage in a language description, product specification, or interface standard; text that seems designed to obfuscate and requires a language lawyer to parse it. . It should be neither too vague, nor over prescriptive and should provide realistic examples and practical guidance. 8. Once the code is finalised, devise an implementation strategy The implementation strategy must be both dynamic and continuous. Incorporate the code into induction, staff training and management development programmes. Bear in mind that implementation, like the preceding processes, may well benefit from a project management 'champion' who can drive implementation forward with purpose, sensitivity and consideration. 9. Circulate the final code widely The code should be sent to all employees. It should be accompanied by a letter from the head of the organisation explaining the purpose of the code and the expectations about its use. 10. Establish a procedure for complaints, concerns and questions Who is responsible for answering these? The line manager, human resource department or an ethics 'hot line'? Ensure that there is a process for appeal to a higher authority. 11. Establish a mechanism to review the code There is no set formula, or time-frame for monitoring and evaluating the continuing relevance and effectiveness of a code of conduct. Nine months to a year may be an appropriate period for seeking feedback and comments and assessing the impact of the code. Again, this will require further consultation, perhaps on a one-to-one basis. Managers should avoid: * using a code of ethics to impose new or inappropriate values * seeing the introduction of a code of ethics as a one-off, rather than an ongoing process * failing to involve employees in the process of drafting and revising the code * producing a document which is ambiguous, vague, confusing or just too difficult to understand * creating a potential gap by expressing principles in the code which do not reflect the way the organisation actually operates--this would encourage cynicism and undermine the organisation's credibility * ignoring the code once it has been introduced, so that it is worth no more than the paper it is written on. Additional resources Books Management ethics, Norman E Bowie and Patricia H Werhane Malden, Mass.: Blackwell, 2005 Absolute honesty: building a corporate culture that values straight talk and rewards integrity, Larry Johnson and Bob Phillips Robert Leon (Bob) Phillips (born June 23, 1951) is an American television journalist best known for his long-running program Texas Country Reporter. In 2005 Phillips was inducted into the Silver Circle of the Lone Star Chapter of the National Academy of Television Arts and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY: AMACOM AMACOM American Management Association , 2003 Developing a code of business ethics: a guide to best practice (includes IBE IBE International Bureau of Education IBE Internet Booking Engine IBE Institut für Medizinische Informationsverarbeitung, Biometrie Und Epidemiologie (LMU, Muenchen, Germany) IBE Ion Beam Etching code of business ethics), Simon Webley London: Institute of Business Ethics, 2003 Does business ethics pay? ethics and financial performance, Simon Webley and Elise More London: Institute of Business Ethics, 2003 This is a selection of books available for loan to members from the Management Information Centre. More information at: www.managers.org.uk/mic Journal articles Up to code: does your company's conduct meet world class standards World class standards refers to the level of achievement, mainly in math and science, attained by students in the four countries that make up the East Asian Tigers; South Korea, Singapore, Japan, and Taiwan, as well as in Europe. ? Lynn Paine and others Harvard Business Review Harvard Business Review is a general management magazine published since 1922 by Harvard Business School Publishing, owned by the Harvard Business School. A monthly research-based magazine written for business practitioners, it claims a high ranking business readership and , Dec 2005 vol 83 no 12, pp122-133 Ethical codes Noun 1. ethical code - a system of principles governing morality and acceptable conduct ethic system of rules, system - a complex of methods or rules governing behavior; "they have to operate under a system they oppose"; "that language has a complex system require reality checks, Sue Law Professional Manager, Jul 2005, vol 14 no 5, pp22-24 This is a selection of journal articles available from the Management Information Centre. More information at: www.managers.org.uk/mic Internet resources Chartered Management Institute Code of Professional Management Practice: www.managers.org.uk Look under Member Services: Professional Management Practice Codes of Ethics Online: http://ethics.iit.edu/codes/ Collection of codes and other resources made available by the Center for the Study of Ethics n the Professions at the Illinois Institute of Technology Illinois Institute of Technology, in Chicago; coeducational; founded 1940 by a merger of Armour Institute of Technology (founded 1892) and Lewis Institute (1896). . Organisations Institute of Business Ethics 24 Greencoat Place, London SW1P 1BE Tel: 020 7798 6040 www.ibe.org.uk |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion