Benefits

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THE BENEFITS OF A CORPORATE CODE OF ETHICS TO THE ORGANISATION AND ITS EMPLOYEES

  • Directors, owners and senior management are in the process of realising that they and their employees need to understand that appropriate ethical values are to be considered when decisions are being made.  

    Organisational, professional and personal values provide the framework to decision making, therefore, it is vital that organisations create an environment or culture where appropriate shared values are created, understood, fostered and committed to by all concerned.  

    This cannot be reliably achieved by simply leaving ethics solely to the judgment of individuals in a workforce of divergent experiences and backgrounds to work out by trial and error.  

    Nor can it be achieved by simply sending a letter urging employees to be on their best behaviour, or by just publishing a code of conduct.

  • In order to ensure commitment to the ethical principles or values considered appropriate for the organization, it must be evident to the members of the organization that top management is fully supportive and that such support is evident throughout the organization’s governance system.

  • A code of ethics promotes an environment of respect based on integrity. 

    When people know the code of ethics and follow it, this creates an atmosphere of trust, respect and confidence in the actions of each person involved in the organization or group. 

    In the presence of a written code of ethics, employees at a company, for instance, are expected to behave a certain way toward each other and toward customers. 

    The practical result of this is a more peaceful atmosphere in which to work, and one that is free of such widespread problems as work-based sexual harassment, violence and other forms of misconduct. 

    A code of ethics is only effective in this way when group members are confident that the rules will be enforced.

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