DEVELOPMENT OF A CODE OF ETHICS
A code of ethics is a management tool for setting out an organization’s values, responsibilities and ethical obligations. The code of conduct provides employees with guidance for handling difficult ethical situations related to the business.
- Development Of A Code Of Ethics -
Businesses should develop their own codes, based on their core values, and no two codes are the same. To be truly effective, the code of conduct must also be embedded in the business, so employees know how it applies to them.
Organizations with strong codes of conduct experience less misconduct, less failure to report misbehavior and less retaliation on the job. This improved ethical behavior can positively impact business performance.Thus, one way to view a code of conduct is as a type of preventative medicine. Without it, a business is vulnerable because it has neglected to take business ethics seriously.
Codes of conduct are especially important for small and medium-sized businesses, which often rely for their success on good relationships with staff members and the local community.