Business Code of Ethics

As a branch of 'Applied Ethics', Business Ethics attempts to apply theoretical ethics to the business. It examines the ethical principles and problem that may arise in business environment. Business ethics helps the organization to stand on the strong pillars of integrity, fairness and trust.

As demand for ethical business is increasing, most of the organizations opted to implement the code of the ethics :

• To define the framework of the acceptable behavior.
• To follow high standards of practice.
• To create benchmarks for self-evaluation.
• To enhance sense of community.
• To create transparency in the business activities.
• To foster higher standards of business ethics.
• To comply with government laws and norms.

The code should include following key areas:

• The Purpose and Values of the Business: The vision and mission of the organization should be kept always in consideration while creating the code. The products and services offered by the company, production and financial goals should be kept in the mind.
• Stakeholders: Shareholders, Customers, Employees, Suppliers are the integral parts of the organization.
  
  • The employee welfare, working conditions, equal opportunities, harassment issues and retirement plans should be mentioned.
  • Maximization of Returns' to share holders is the basic purpose of any business. While making the code of the ethics, the conflicts may arise while dealing with this purpose. The protection to the investments and the timely returns on the investment are always needed.
  • Every business organization knows the importance of the customer satisfaction. The promises about the fair pricing, quality, after sales service made to the customers should always be kept.
  • The payments to the supplier should always be on time. No excess hospitality or bribe should be accepted or given.
• Society, Government and Environment: The compliance with the laws and the social norms should be maintained. The company's activities should always be environment friendly.
• Implementation Process: It always important the code is implemented properly. It should be seen that the code is reached and understood properly by all. Awareness campaigns and the training programs should be run if required.
• Scope for Feedback: The feedback is always necessary for improvement and evaluation of the code. At least annual report should be given to the board members. Review procedure should be created to update the codes.

Following factors should be always kept in the mind:

• Involvement of The Senior Management: Every company needs a champion or roll model or mentor to guide the corporate ethics program. A senior person mostly CEO or Chairman should take the responsibility to lead the ethics program. The board and senior management should show the enthusiasm and always provide the guidance to the employee.
• Involvement of The Employee: No program can be successful without involvement of the grass root employees. It is important to know what bothers people while making the code of ethics. Each and every person should know the code of the ethics and should be made to follow it.
• Picking The Well Tested Model: A framework which addresses issues as they affect different constituents should be used. Sometimes the competitors should be considered. If the company is global then laws and people of the other nations must be included in the model.

Running the Corporate Ethics Program is not always easy but it's worth running as it gives returns in the long run.