Code of ethics in Business

Code of ethics in Business

Code of ethics is guideline issued by the management for ensuring the compliance with ethical issues. These guidelines are to be applied in action & decision by the employees.

Reasons for Code ethics in Business

1.    Compliance

First reason for code of ethics is to ensure compliance with code of ethics.  Formal issued guidelines are deemed to be taken more seriously by the employees. In many organization code of ethics circulation & code of ethics compliance reporting is a binding activity.

2.    Goodwill

Second reason for issuing code of ethics guidelines is to maintain a good will of organization. Any non compliance with ethical issue can bring a bad reputation for the organization, and such bad reputation will adversely affect the organizational objectives. Therefore code of ethics development and implementation is fundamental for maintain the organization Goodwill.

3.    Improving Control

Third reason for code of ethical is to promote a culture of control in the organization. Code of corporate ethics will help organization to maintain an effective governed organization. A well controlled environment will ensure long term stability of the organization.