Friday, October 24, 2014

Code Of Ethics Questions

Many companies and professional organizations require their employees or members to abide by a code of ethics. Employees and members represent the organization and maintaining a high level of integrity reflects on the organization. Individuals encountering different situations may have questions regarding how the code of ethics applies.


Why Should a Company Create a Code of Ethics?


A code of ethics documents the company's position on ethical issues. It demonstrates the commitment by senior management to maintain a high degree of integrity and communicates this commitment to employees. A code of ethics provides direction to employees for handling ethical dilemmas. The code ensures that all employees receive the same guidance for ethical conflicts. While company values are written as overall concepts, the code of ethics translates those values into practical actions. Creating a code of ethics also demonstrates to customers that the company commits itself and its employees to maintaining the highest level of integrity.


How Can a Code of Ethics be Created?


Creating a code of ethics must begin with senior management and board of director support. Senior management support sends the message to all employees that having a code of ethics matters. One person must take ownership of creating the code of ethics and champion the project. This person will manage the process and keep all team members focused and on schedule. The champion gathers team members from various departments in the organization. Together, the group discusses the purpose of the code of ethics and identifies internal issues to include in the code of ethics. The group reviews examples of codes of ethics from other companies to identify potential issues that also need to be included. The group needs to create a method for monitoring the success of the code of ethics and meet regularly to review the code of ethics.


What Problems Arise When Implementing a Code of Ethics?


Companies can experience several problems when implementing a code of ethics. If the code of ethics lacks senior management support, the employees will receive the message that ethics are not important in this company. If no employee champions the project, the project lacks leadership and personal issues can prevent the code from being created. If employees working on the code of ethics still maintain their daily responsibilities, they may not be able to devote time to the code of ethics at the same time.