Benefits of Code of Conduct
Given the regularity of business scandals that are reported in the media
• Discuss the pros and cons of a formal code of conduct for managers.
• Discuss whether being a socially responsible organization helps or hurts the organization’s economic performance.
A code of conduct or code of ethics is defined by www.businessdictionary.com as “written guidelines issued by an organization to its workers and management, to help them conduct their actions in accordance with its primary values and ethical standards.”
Most organizations will establish this written document to clearly articulate to their employees what behavior is acceptable or unacceptable, the consequences for inappropriate actions, security restrictions, conflicts of interest, accountability of employees and management, and more.
Most of the benefits of providing a code of conduct are initially intangible, such as improved organization reputation and greater employee morale and performance. Both of these benefits can turn into tangible benefits such as increased revenue down the line. Outsiders looking in see this code of conduct as an indication that the organization cares about its employees and has a respect for the law, and thus are more inclined to patron that business.
We have all seen the annual Top 100 Companies to work for list. Many of those companies are on that list because their employees have bragged about how wonderful the companies values are, how much they feel supported by their company and managers, and their code of ethics. These happy employees tend to produce at a higher quality and longer term.
As with all things, with good there can be a bad. Some of the most obvious cons are the immediate cost of the company to implement their code of conduct, as well as any future losses incurred by abiding by that code. In order to effectively implement a code of conduct, the organization must spend to have it drafted, shared amongst its employees, and provide any training
• Discuss the pros and cons of a formal code of conduct for managers.
• Discuss whether being a socially responsible organization helps or hurts the organization’s economic performance.
A code of conduct or code of ethics is defined by www.businessdictionary.com as “written guidelines issued by an organization to its workers and management, to help them conduct their actions in accordance with its primary values and ethical standards.”
Most organizations will establish this written document to clearly articulate to their employees what behavior is acceptable or unacceptable, the consequences for inappropriate actions, security restrictions, conflicts of interest, accountability of employees and management, and more.
Most of the benefits of providing a code of conduct are initially intangible, such as improved organization reputation and greater employee morale and performance. Both of these benefits can turn into tangible benefits such as increased revenue down the line. Outsiders looking in see this code of conduct as an indication that the organization cares about its employees and has a respect for the law, and thus are more inclined to patron that business.
We have all seen the annual Top 100 Companies to work for list. Many of those companies are on that list because their employees have bragged about how wonderful the companies values are, how much they feel supported by their company and managers, and their code of ethics. These happy employees tend to produce at a higher quality and longer term.
As with all things, with good there can be a bad. Some of the most obvious cons are the immediate cost of the company to implement their code of conduct, as well as any future losses incurred by abiding by that code. In order to effectively implement a code of conduct, the organization must spend to have it drafted, shared amongst its employees, and provide any training