Module-1 Ethics Programme: Code of Ethics

 A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity. ... A code of ethics also referred to as an "ethical code," may encompass areas such as business ethics, a code of professional practice and an employee code of conduct.

A professional code of ethics is a set of principles designed to help professionals distinguish right from wrong in order to govern their decision-making. Often referred to as an ethical code, these principles outline the mission and values of an organization, how the professionals within the organization are supposed to approach problems and the standards to which the employees are held.

Significance of Code of Ethics

•       A professional code of ethics is designed to ensure employees are behaving in a manner that is socially acceptable and respectful of one another. It establishes the rules for behavior and sends a message to every employee that universal compliance is expected. It also provides the groundwork for a preemptive warning if employees break the code.

•       A code of ethics can be valuable not just internally as a professional guide but also externally as a statement of a company’s values and commitments.

The statement of Values is different from code of ethics.

The statement of values serves the general public and also addresses distinct groups such as stakeholders. Values statements are conceived by management and are fully developed with input from all stakeholders. Or Serves the general public and addresses stakeholder interests

Examples of a professional code of ethics

The relevant professional body creates and update the Code of Ethics for respective professions

•       Lawyers

•       Physicians

•       Financial advisors

•       Businesses

However, all code of Ethics have the following general features across professional bodies.

•       Confidentiality and privacy policies: Companies may require employees to maintain confidentiality when handling clients’ private information or when dealing with the company’s own proprietary data.

•       Obeying the law: Companies may specify guidelines that require employees to abide by the law. For example, they may discuss profiting from—or enabling others to profit from—inside information regarding a company’s financial stability, performance or internal problems.

•       Caring and consideration policies: Companies may establish policies requiring employees to behave in a caring and considerate manner. For example, if you provide home healthcare services to senior citizens, treating the patient and their family with care and consideration can impact your ability to obtain new clients. Employers could also include these policies in reference to how employees treat one another. This can ensure everyone understands that behaving with consideration and compassion is a baseline expectation and that other behavior will not be tolerated.

 

Difference between a Code of Ethics & Code of Conduct

Code of Ethics

A document usually issued by the Board of directors, that outlines a set of principles that affect decision-making.

For Example,  a code of ethics might stipulate that XYZ Corporation is committed to environmental protection and green initiatives

The expectation is that individual employees, when faced with the option, will select the greenest option

Code of Conduct

Typically issued by a Board of Directors; However, it outlines specific behavior that are required or prohibited as a condition of ongoing employment

Corporate Codes of Ethics Often contain six core values

  1. Trustworthiness
  2. Respect
  3. Responsibility
  4. Fairness
  5. Caring
  6. Citizenship

These values will not be effective without distribution, training, and the support of top management in making these values part of the corporate culture.

How to develop a code of ethics

1.Set your priorities

•       The first step you should take when creating a code of ethics is deciding the values that are important to your company. Putting these rules in place early on will help your company grow the way you want it to. For example, as your organization develops and expands, you will be hiring new employees, and you want them to understand the values of your organization before you bring them into the workplace.

•       One way you can identify your company’s values is to consider what your limits are when trying to acquire clients or meet your revenue goals. It is also important to think about your company’s work environment as well as smaller factors like attendance and dress code.

2. Ask employees for input

•       Request your employees to participate as you craft your code of ethics. Employees need to understand why it is important to put the code of ethics into writing and why it contains the tenets it does. If you ask them for input when you are creating the code of ethics, they will be far more likely to support the idea, and the code may encompass a more well-rounded selection of principles.

3. Put someone in charge

•       Even if you have the support of senior management and employees alike, someone still needs to be put in charge of applying your code of ethics. Often known as an ethical or compliance officer, this person needs to have a strong commitment to the success of your organization, be reliable and have strong interpersonal skills. Usually, this role will fall to someone in your HR department who may also be responsible for monitoring and reporting misconduct.

•       The employee you put in charge of maintaining your company’s code of ethics should also be responsible for updating it. The code should be a dynamic part of your business that changes as your company grows and develops. Each year, you should ask yourself if it continues to represent your business and who you want to be.

4. Have someone to turn to for help

•       If you are part of a smaller company in a low-risk, low-liability field, you can typically draft a code of ethics yourself. However, if you have more than 20 employees, you may want to consider consulting with a human resources specialist or an ethicist. It can be beneficial to ask for help in order to make sure you have covered every necessary principle in your code of ethic

 

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