Describe the Role That a Code of Conduct Plays in Ensuring

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The Answer is Most firms begin the process of establishing organizational ethics programs by developing codes of conduct (also called codes of ethics), which are formal statements that describe what an organization expects of its employees. These codes may address a variety of situations from internal operations to sales presentations and financial disclosure practices. A code of ethical conduct has to reflect top managers' desire for organizational compliance with the values, rules, and policies that support an ethical climate. The code should also be revised periodically. Research has found that corporate codes of ethics often have five to seven core values or principles in addition to more-detailed descriptions and examples of appropriate conduct. Six core values are considered to be highly desirable in any code of ethical conduct: (1) trustworthiness, (2) respect, (3) responsibility, (4) fairness, (5) caring, and (6) citizenship. These values will not be effective without distribution, training, and the support of top management in making them a part of the corporate culture and the ethical climate. Employees need specific examples of how these values can be implemented. Codes of conduct will not resolve every ethical issue encountered in daily operations, but they help employees and managers deal with ethical dilemmas by prescribing or limiting specific activities. Many firms have a code of ethics, but sometimes they do not communicate their code effectively. A code placed on a website or in a training manual is useless if the company doesn't reinforce it on a daily basis. By communicating both the expectations of proper behavior to employees, as well as punishments they face if they violate the rules, codes of conduct curtail opportunities for unethical behavior and thereby improve ethical decision making. Codes of conduct do not have to be so detailed that they take into account every situation, but they should provide guidelines and principles capable of helping employees achieve organizational ethical objectives and address risks in an accepted manner.

Describe the Role That a Code of Conduct Plays in Ensuring

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