PHL 323_Evaluation of a Business Code of Ethics_Auge_Final
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Evaluation of a Business Code of Ethics
Ian C. Auge
PHL/323
12/22/15
Penny Hylton, PhD
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Evaluation of a Business Code of Ethics
For the purpose of this evaluation I will be using Exxon Mobil Corp. as my organization for
analyzing their company’s code of ethics. I will provide a brief overview of the organization, in
addition to its current mission statement. Next, I will determine the type of ethical system that is
utilized, and I will identify and discuss how their particular code of ethics is used among all levels
of employment. Finally, I will explain how the organization might need to modify their existing
code, my personal recommendations for implementation, and the current effects that
organizational culture has on the acceptance of this code.
Exxon and its Mission
Who is this Exxon Mobil, and where did they come from? I have seen many locations
along the east coast, but what do us as consumers really know about the ethical beliefs that are
portrayed by this corporate giant? In short, they are the result of a long list of mergers and
acquisitions over the years. John D. Rockefeller and a team of his peers established Standard Oil
Company of Ohio back in 1870. Matthew Ewing and Hiram Bond Everest created Vacuum Oil
Company back in 1866, which would go on to become Mobil Oil Corporation (Farfan, 2015). As
of 1999, they are collectively known as Exxon Mobil.
Today, Exxon Mobil seems to be a fine example of how hard work can evolve into
something far greater than we can imagine. According to “SuccessStory.com” (2015), “Exxon
Mobil is the largest refinery of the world, thanks to its per day production. The company
produces 6.3 million barrels every day. In 2008, Exxon contributed to 3 percent of the worldwide
production, which is less than some of the largest petroleum companies that are state owned”.
(para.2)
Interesting enough, while their world headquarters is based out of Irving, Texas, their
retail headquarters is in territory that is not only familiar to me, but is also considered to be in my
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immediate region. It resides in none other than Fairfax, Virginia. After reading some of the
interpretations and perceptions about this organization one thing seems to be abundantly clear,
business as usual is one big paper chase. Here is a glimpse of their mission. Farfan (2015),
“Exxon Mobil Corporation is committed to being the world’s premier petroleum and
petrochemical company. To that end, we must continuously, achieve superior financial and
operating results while simultaneously adhering to high ethical standards” (para.7).
Existing Ethical System
Based on my readings, Exxon Mobil seems to be a combination of both Ends-Driven and
Duty-Based ethical systems, as they relate to laws and regulations. I say this due to the fact that
aside from their mission statement, immediately following the “Ethics Policy” heading, emphasis is
placed on the compliance with all governmental laws. This isn’t at all surprising to me, due to the
hazardous potential in petrochemical products and how they affect our environment. One of the
more fascinating sentences does in fact highlight a strong ethical intent. According to “Exxon
Mobil Corp.” (2015), “A well-founded reputation for scrupulous dealing is itself a priceless
corporate asset” (Code of Ethics and Business Conduct).
What an amazing thing to say or include in an ethical code of conduct section!
Scrupulous, an adjective that means to have a high regard for what one believes is right. The key
word in this definition is “believe”. This particular belief is to be scrutinized in every organization.
Ethical Application
It is stated in the ethical code of conduct that there is a “no toleration” policy for
individuals that are deemed in compliance with unethical behavior. They expect all directors and
officers to support employees that combat unethical practices in the workplace. Additionally,
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there is a strict adherence to accurately reporting all transactions by employees of all levels. All of
this is tied to maintaining an honest “legal” relationship with government officials.
One of the primary methods for enforcing increasingly strong ethical behavior on all levels
of employment is through their Procedural and Open Door Communication Policy. Everyone
plays a role in the successful application of these ethical practices, and employees are encouraged
to remain vigilant in their movements. Exxon embraces constant communication, and they
encourage questions, concerns, and suggestions regarding the everyday practices within the
organization. They also expect employees to come forward and report any suspected violations
to policies and internal controls, so that management can quickly resolve all pertinent occurrences
(“Exxon Mobil Corp.”, 2015).
Modification
One of the things that I did enjoy about their code of ethics was their constant usage of
the words management and employees. With that said, I would have liked to see the world
leadership utilized more often. All too often organizations get caught up in the concept of
managing as it relates to results, but fail to capture the profoundness behind true leadership as it
pertains to establishing relationships, innovation, and progression through synergy.
As a CEO/Leader, I would ensure that each of my leaders remained aware and involved in
the lives of all of their subordinates. I would want all of my employees to be motivated on a
regular basis, and their loyalty to reach levels that are unimaginable.
All leaders should build relationships with their peers. This would strengthen the overall
continuity of the organization. Finally I would be a strong advocate in the diversity and retention
of staff members. I want individuals of all backgrounds, and I want them to know that their
dedication to the organization will never be taken for granted.
Ethical Effects and Implementation
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My desired change could never be realized without the appropriate leaders in place,
combined with the necessary channels and processes for communicating my desires. Effective
hiring practices would be enacted and monitored, and social familiarity should be proclaimed. I
believe that reactions are based upon experience and current knowledge. It is upper
management’s job to ensure that a smooth transition ensues.
Organizational culture will always play a key role in reception. For organizations like
Exxon, this is why it is important for everyone to possess the same mutual understanding for
ethical business conduct as it relates to achieving mission objectives. I think that it becomes
increasingly difficult for the larger more influential organizations to maintain control over ethical
mishaps. As an organization grows, so should its contribution of resources toward building an
even larger ethical practice. Organizations cannot afford to neglect the one thing that will dictate
all future integrity and perception.
Conclusion
I have heard it said before, that the pen is mightier than the sword. There is a great deal
of truth to this statement, but only if the written words are reinforced by physical proof. I could
visit a multitude of organizational websites; reading only what could be described as the most
professional and law-abiding passages, but that wouldn’t make them accurate. What matters
most is the action that we place behind our proclamations.
It is no secret that Exxon and many others like it are trailblazers in their respective
industries, and based on their mission statement and codes of conduct, they want to achieve
astronomical feats. They have done so, and will continue to do so, but it is important to
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remember that sacrificing character and humility in the process, is something that regrets are truly
made of. Set trends for the sake of humanity and the progress of our people, and not for the
acquirement of riches. Words to live by…
References
Exxon Mobil Corp. (2015). Retrieved from http://corporate.exxonmobil.com/
Farfan, B. (2015). About.com. Retrieved from
http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-
Statements/ExxonMobil-Corporation-Mission-Statement.htm
SuccessStory.com. (2015). Retrieved from http://successstory.com/companies/exxon-mobil-
corporation
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remember that sacrificing character and humility in the process, is something that regrets are truly
made of. Set trends for the sake of humanity and the progress of our people, and not for the
acquirement of riches. Words to live by…
References
Exxon Mobil Corp. (2015). Retrieved from http://corporate.exxonmobil.com/
Farfan, B. (2015). About.com. Retrieved from
http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-
Statements/ExxonMobil-Corporation-Mission-Statement.htm
SuccessStory.com. (2015). Retrieved from http://successstory.com/companies/exxon-mobil-
corporation