2. Definition
Code of ethics are guideline to the
moral principles or values used by
organizations to steer conduct , both
for the organization itself and its
employees , in all their business
activities , both internal and external
.
Advantages of a code of ethics :
Provides explicit guidance to
managers and employees so they
know what is expected of them in
terms of ethical behavior .
Provides new employees with
ethical guidance and a sense of
common identity .
3. Enhances the organization’s
reputation and inspires public
confidence .
Signals to suppliers and customers
the organization expectation of
proper conduct .
Promotes a culture of excellence by
demonstrating the commitment of
the organization to ethical behavior .
Disadvantages of a code of ethics :
Introducing a code can lead to
cynicism if it is seen only as a paper
exercise .
Without proper guidance , different
parts of the organization may
interpret the code differently ,
ultimately devaluing it .
4. Introducing and implementing the
code effectively will be demanding
of senior management time .
The code may raise public and
employee expectations to a level
that the organization is unable to live
up to .
