The document discusses codes of ethics for organizations. It explains that a code of ethics is a formal policy statement that outlines rules of conduct for employees and consequences for violations. The document then breaks down the typical components of a code of ethics, including an introduction by management, a statement of values and purposes, specific conduct rules divided by stakeholders (employees, customers, etc.), and an implementation section covering reporting and sanctions. It notes that while large formal codes have emerged, smaller businesses can effectively communicate ethics expectations through brief written policies or staff discussions.

1. Business Communication-II
Study of Code of Ethics and Code of Communication of an
organization
Submitted To Submitted By
Dr. Kapil Chaturvedi Pritam Pandey
Group 1 Section D
2014205

2. CODE OF ETHICS
A code of ethics issued by a business is a particular kind of policy statement. A properly framed code is, in
effect, a form of legislation within the company binding on its employees, with specific sanctions for violation
of the code. Both businesses and trade organizations typically have some sort of code of ethics that its
employees or members are supposed to follow. Breaking the code of ethics can result in termination or
dismissal from the organization. A code of ethics is important because it clearly lays our the "rules" for
behaviour and provides a pre-emptive warning.
Business ethics emerged as a specialty in the 1960s in the wake of the
"social responsibility" movement embraced by some large corporations;
that movement itself was stimulated by rising public interest in
consumerism and the environment. An important distinction exists between
law and ethics. Obeying the law is the minimum level of ethical conduct
enforced in society; ethical behaviour includes more than simply legal
behaviour. It is unethical to lie, for instance; but lying is against the law
only under certain limited circumstances: lying under oath is perjury.
Business ethics, and the codes that formally define it, always include
elements that go beyond strict legality; they demand adherence to a higher standard.
THE DOCUMENT
A code of ethics is a formal document rather than merely an
"environment," an "understanding," a consensus,
"unwritten rule," or just an aspect of "corporate culture."
It is at minimum a published document. In many
organizations employees are also required to sign a
statement to the effect that they have read and understood
it. Variations on this theme exist. In very large
corporations or corporations reacting to recent scandals,
sometimes only corporate officers or only financial
officers are required to sign. In other cases multiple codes
of ethics may exist tailor-made to such functions as
purchasing, sales, accounting, etc.
Codes of ethics are free-standing expressions of corporate
will even when they are published as chapters or sections
in a document which may contain a mission statement, a
listing of corporate values, and general policies relating to operations.
CONTENT
Codes typically divide into three distinct elements: 1) an introduction or preamble, 2) a statement of purposes
and values, 3) specific rules of conduct which may be subdivided in various ways, and 4) implementation of the
code, which will define administrative processes, reporting, and sanctions.
Introduction: Management Sponsorship
The introduction or preamble to a code of ethics ideally carries a statement by the top-ranked officer of the
corporation indicating his or her personal commitment to and backing of the code. Experts on and scholars of
business ethics never fail to underline the importance of top management leadership, including by example.
Codes of ethics published pro forma, possibly in the context of some rumors of scandals, carry little weight

3. with employees unless tangible signs of corporate commitment are given. The preamble of a code of ethics
provides an opportunity for sending such a signal.
Purposes and Values
The leading section of the code typically provides an abbreviated mission statement followed by values. This
section states what the company is all about, what it does, why it exists. Ideally the code will state practical
financial objectives as well as less precise social and professional aspirations. The statement of values,
similarly, will begin with narrowly defined statements and expand on these. Obeying all pertinent laws and
regulations may be the initial value; adherence to higher ethical values will be spelled out next. Corporations
engaged in some professional specialty (engineering, medicine, law, etc.) may explicitly refer to professional
standards and standard-setting bodies.
Rules of Conduct
Rules of conduct are
typically subdivided.
The Institute of
Business Ethics
(IBE), a London-
based organization,
provides a list easily
adaptable by a small
business formulating
its own code. IBE
divides the central
presentation into
codes of conduct
adopted by the
business toward its
employees,
customers,
shareholders and
other funding agents,
suppliers, and then
the wider society. In
the subsection dealing with employees, an effective code will be further subdivided into the corporation's
conduct toward employees and, separately, conduct expected from its employees.
In the language of business, the groups named above constitute the "stakeholders," those who have a stake in
the well-being (and also in the ethical behaviour) of the business. These groups typically define all those with
whom the corporation has an interaction. In many cases, all depending on the range and activities of the
corporation, other areas will get special emphasis. Thus rules of conduct may be spelled out in relation to the
physical environment; ethnic, gender, and race relations; realms such a law and justice or medical practice.
Codes of ethics may also specifically address areas of difficulty such as campaign contributions or compliance
with specific laws. Examples of such rules are provided by FindLaw for Small Business, of instance, relating to
antitrust statutes.
Within subdivisions, the code may specify categories of problems such as conflicts of interest; taking or
offering bribes, gifts, favours, etc.; rules relating to information such as disclosures, withholding data, insider
trading, and so forth; preferential treatment, discrimination; interpersonal relations including sexual harassment;

4. resolving quality versus cost conflicts; and potentially endlessly more issues. Well-executed codes of ethics will
be concise, as brief as possible, yet will contain vivid examples to make each point as clear as possible.
Implementation, Reporting, and Sanctions
The final section of a code will deal with administrative implementation of the code and sanctions against code
violations. The simplest code will require reporting of code infractions up the management chain, including
what action to take if the next level up fails to take action. In larger organizations an office or function may be
expressly charged with handling code violations. Ombudsmen may be named. Sanctions will be spelled out and
their administration defined, including a transparent process for establishing facts, the issuance of warnings,
requirements for counselling or re-education, consequences of repeat offences, on up to discharge or even, if
appropriate, litigation.
For obvious reasons, a code of ethics without sanctions and a rational process for its implementation will be
viewed by employees as merely a gesture without "teeth." Conversely, the business owner must be alert to the
fact that ethical violations are not necessarily be legal infringements; therefore sanctions such as firing an
employee may be problematical unless the business has an "employment at will" hiring and firing policy and its
exercise is backed by state and federal law under the circumstances.
ETHICS CODES AND SMALL BUSINESS
One of the advantages of small business is that it can avoid what are sometimes time-consuming upheavals in
the business world. By any measure, traditional or modern, ethics is an important issue. Observation and studies
show that ethical behaviour is efficient. A. Millage recently wrote in Internal Auditor about the findings of the
"2005 National Business Ethics Survey" (NBES). The NBES is conducted by the Ethics Resource Center. The
survey showed that 70 percent of employees in companies with a "weak" ethical culture (as measured by
NBES) observed ethical wrong-doing in their companies. Only 34 percent of employees in organizations with
"strong" ethical culture did so. Employees observed morale-destroying behaviour such as discrimination and
sexual harassment; lying internally, to vendors, customers, and the public; misreporting of time; direct thievery;
and other problems. By any measure such activities translate into higher costs, lost reputation, poor
performance, etc. Ethics matters.
At the same time, the current preoccupation with codes of ethics is producing very large documents, sometimes
reaching the length of books. A Google search on the phrase "code of ethics" yielded 17,900,000 hits in January
2006, a Yahoo search 12,000,000. Much of the current interest may be due to recent corporate scandals and the
requirements of the Sarbanes-Oxley Act of 2002. Does the current interest mean that a small business must
formulate its own code of ethics? In most cases, it will do no harm.
To publish such a code is relatively easy. Many hundreds of sample codes are available on the Internet, many of
them specifically designed for the small business. The small business owner can easily write a one-page code
and distribute it to employees if he or she sees the need for this. Many small businesses have found it useful in
the past to publish policy statements that deal with personnel policy, including business hours, vacations,
accrual of personal time, and so forth. A code of ethics along the same lines may be easy to produce and serve
an important purpose: to underline the owner's commitment to ethical behaviour.
Many very small businesses of 10 to 20 employees operate more like families. Ethical behaviour is part of the
culture—as it is in a family. In such situations the sudden appearance of a code of ethics may be rather jarring.
Discussion of the matter in a staff meeting may serve the purpose better: to alert employees to this issue and
what is happening "out there."

5. Example:
Companies from Tata to Infosys follow code of ethics to maintain the credibility of the company and provide
the firm a right direction. Following are the Samsung Securities code of ethics-
 One, We will perform our jobs honestly and fairly, adhering to the highest standards of ethical conduct.
 One, We will act in the best interests of our customers, keeping with our fiduciary duty.
 One, We will protect shareholder value by generating profits through effective and efficient
management.
 One, We will comply with all applicable laws, regulations, and company policies, and compete fairly to
promote healthy growth of the industry.
 One, We will treat each other with mutual trust and respect, believing what is good for the company is
good for us all.
 One, We will continue to pursue self-development and enhance our professional expertise.

6. CODE OF CORPORATE COMMUNICATION
The power to communicate with corporations' employees and customers carries considerable responsibilities.
Organizations including the International Association of Business Communicators and the Public Relations
Society of America develop ethical standards essential for the professional communicator. The content varies
by organization, but the principles are the same.
Important principles of Code of Corporate Communication are-
 Honesty
Professional communicators are honest,
accurate and candid in all communications.
This practice encourages the free flow of
important information in the interest of the
public.
 Confidentiality
Protecting the confidences and privacy rights
of employees and customers is the duty of
professional communicators. Additionally,
they must abide by legal requirements for
disclosing information that affects the welfare
of others.
 Credit
When content is borrowed from another source, professional communicators give credit and identify that
source. In many cases, communicators must request permission from the original source before sharing the
borrowed information.
 Free Speech
Professional communicators support the principles of free speech and free ideas. These practices encourage
open competition.
 Courtesy
Sensitivity to cultural values and beliefs are
crucial for the professional communicator. It’s
important to understand your audience and
encourage mutual understanding.

7. Example:
Swedish Match’s Corporate Communication Code is an important aspect of their continual efforts to build up
global trust in the corporate brand. It has been adopted by Swedish Match’s Board of Directors to provide
guidelines for how communication should be conducted to ensure that it is in accordance with the Swedish
Match Group’s interests.
The main purpose of the Corporate Communication Code is to establish guidelines for presenting the Company
to current and potential stakeholders, both internally and externally.
Main goals for external communications:
• Support the business concept and strategies
• Strengthen confidence in the Swedish Match Group, the Swedish Match brand, its employees, management,
and products
• Share information with regard to Public Affairs and Scientific Affairs
• Meet expectations concerning Swedish Match’s compliance with legislation, regulations and standards
relating to communication activities
• Support a correct evaluation of the Swedish Match share and facilitate the raising of capital by giving as
accurate a picture as possible of the Group’s financial position
• Manage the image of Swedish Match, its products, and activities. Facilitate recruitment of employees
Main goals for internal communications:
• Make sure that the Company’s goals, policies and guidelines are communicated Strive to give employees the
information they need, when they need it, in order to increase understanding and commitment, build
motivation, and support the Company’s strategies
• Communicate with employees about decisions and events that affect them before (if possible) and never later
than when information is communicated externally
• Contribute to the Swedish Match Group’s business objectives
• Increase each employee’s knowledge about the Swedish Match Group and its development
• Enhance employee’s knowledge of Swedish Match’s business objectives, strategies and values
• Provide clear and current information to employees on Group policies and information vital to the Group with
regard to corporate branding (Corporate Identity)
• Internally disseminate success stories and good business solutions throughout the organization, in order to
spread creativity and encourage cross-operating unit.

8. Key words for communication
The Swedish Match Communication Codes governs how we behave and establishes rules and standards for our
day-to-day communication. The key words are:
• Correct
• Proactive
• Well-planned
• Factual
• Long term
• Simultaneous
• Pertinent
• Consistent
• Adapted to target groups
• Rapid

9. APPLICATION OF ABOVE MENTIONED CODES IN INDIA
Code of Ethics in Indian Corporate
With the globalization, many changes occurred in Indian Industry. From empowerment of labours to
automation. In the process ethics in business became an important matter of concern. Among the Indian
corporates, Tata group is the best example of business ethics. Now-a-days companies are not only concentrating
on the profit but the ways, by which those profit level is attained. Customer satisfaction is one of the major
reason due to which companies strongly follow code of ethics. According to article published in THE HINDU
on January 11, 2013
The NHRC came up with the 12-point Code after a panel appointed by it submitted a report and said Indian industry‟s
criteria for social and ethical aspects are yet to reach the desired level of sophistication.
“As per this tenet, companies must conform to trade procedures, including licensing, documentation and other
necessary formalities, as applicable,” the study „Developing Code of Ethics for Indian Industry‟ said.
Noting that inclusion is one of the key deterrents to growth in the country, the study said, the first tenet to ethical
behaviour has to be inclusiveness.“ All companies must refrain from undertaking projects or activities that would be
detrimental to the wider interests of the communities in which they operate. This implies that companies should respect
the local culture, customs and traditions in which they operate,” it said.
In a statement, NHRC said the Code of Ethics for Indian Industry strongly advocates for equal opportunities to all
qualified employees, regardless of their race, caste, gender, religion etc for their inclusive growth and welfare.
In the 21st century India, all businesses can afford to pay all due taxes and avoid corrupt practices while still
making good profits needed for survival and growth. This is a fact that has to be understood clearly by all. They
have a large number of good examples of successful and ethical businesses in India to emulate; and their
number is increasing due to the changed expectations of multinational corporations from their Indian vendors
and partners. Only a firm resolve by the top management can make it possible for a business organisation to
behave ethically in its interface with the government. The top alone can decide not to evade taxes and
simultaneously find ethically right ways of making the business grow. Use of information technology has made
it possible to bring in great transparency in systems and has eliminated corruption at many levels. India is
marching internally towards better democracy, improved governance, fewer unduly restrictive laws and
simplified tax regime. Externally, India is getting increasingly integrated with the businesses and institutions
from the advanced countries that are far ahead in ethical behaviour in business.
Codes of Corporate Communication in India
Infosys tried to preserve the attributes of a small company even with the expanding base and worked in small
groups; Managers played the role of mentors and used their experience to guide their team members. Infosys
was one of the first companies to offer scope to its employees compensation depended on the performance of
individual, the team and the company Challenges faced by the company to retain its talented workforce.
Leadership at different levels of the organization in Tata display strong commitment to ethics through
communication and adoption of role model stature. In order to ensure ethical business practices in an
organization, it is important to have an ethical orientation among the people who own, manage, and work for it.
At Tata, this has been achieved by adopting proper structures, policies, and practices as they influence the
ethical behaviour through flow of communication and reinforcements of ethical choices.
Bharti being an Indian company and many of their vendors are multinational companies there will be many
culture differences for Bharti employees to deal with. Not only in the way business is handled but with

10. company’s norms, communication barriers, and best practices. In aligning Knowledge Management with
strategic goals, it became part of Bharti’s culture. That said, there are always people who will question the
value of Knowledge Management. Given this, regular, focused communications and visible senior-management
support remain invaluable.
The State Bank of India had to face a dramatic cultural change with the challenges thrown by the private sector
banks which provided customer oriented services while most of the staff in SBI was not aware of the fact that
the bank was losing its hold amongst the upper end market. According to survey report “the top two obstacles
encountered by bank during the major organizational changes are communication breakdown and employee’s
resistance. ”Biggest challenge for the management was to convey its idea of transformation to each and every
employee of the organization. Communication is the key to SBIs success as it is able to link numerous branches
across the globe.
Reliance Industries Ltd. ensure institution of standardised channels of internal communications across the
Company to facilitate a high level of disciplined participation. Reliance Knowledge Management System
(KMS) was built to be the common intranet system for Reliance Industries Ltd., allowing users to share news,
photos, videos and more.
Looking at the most of the Indian corporations, it is observed that communication tends to be more top-
downwards than bottom-upwards. Due to a tendency to centralize authority and decision making at the top of
the organization, horizontal communication (or co-ordination) is considered difficult to achieve.
Because of low level of delegation, too much information flow is assumed as not required; not to mention that
the feeling of distrust encourages information-hoarding. Hence, information is clearly perceived as power by
superiors, and is distributed carefully and selectively. This may be attributed to the high power distance, where
communication tends to be less open and more indirect. In India, involving an intermediary is imperative for all
cases that could lead to a clash between people and thus to a loss of face. Examples are a critical appraisal of a
subordinate or a counterpart or the resolution of a conflict of interest within the organization. In dealing with
the outside world, intermediaries are used even more frequently.

11. Bibliography
http://www.investopedia.com/terms/c/code-of-ethics.asp
http://www.inc.com/encyclopedia/code-of-ethics.html
http://www.samsungsecurities.com/csr/ethics.do?cmd=list&MenuCode=M030301
http://www.ehow.com/facts_6726807_corporate-communication-code-ethics.html
http://www.iimidr.ac.in/iimi/images/IMJ/Volume3_Issue1/Business%20Ethics%20in%20India.pdf
http://nhrc.nic.in/Documents/reports/misc_dev_code_of_ethics_for_indian_industry_ICSM.pdf
http://www.thehindu.com/business/nhrc-unveils-code-of-ethics-for-indian-industry/article4298624.ece
http://www.anmconsultants.com/role-communication-indian-corporate-culture