CIMA E1 Syllabus A. Role of the finance function - Corporate Codes of Ethics - Notes ^{3 / 8}

Corporate Codes of Ethics

Many companies have written their own Code of Ethics (a set of internal policies) and their employees must follow them. 

These policies can either be generalised or specific, however there is no one size fits all approach and organisations will create policies that fit their needs but tend to focus on areas such as:

1. Honesty

2. Integrity

3. Customer focus

Companies can also appoint Ethics Officers to monitor these policies and how they are applied in the workplace as well as offer guidance to employees who face ethical dilemmas.

There are different approaches that can be taken when making ethical decisions:

1. Egoists - They look after their own needs when making a decision.

2. Pluralists - They consider whether other stakeholders are compromised by a decision

3. Absolutists - They are concerned about whether a course of action is fundamentally correct “in itself” regardless of potential consequences or costs

4. Consequentialists - They will focus on the consequences of a decision before determining a course of action.

5. Utilitarians - They seek to maximise the overall benefit to society when making a decision.