In today's competitive corporate environment, many of today's businesses are placing an renewed emphasis on the development and implementation of corporate ethics policies.
Definition
Corporate ethics policies are documents that serve as a company's declaration of the ideals and values under which they will operate. They are based on a company's attestation that they will operate with solid moral principles.
Features
Corporate ethics policies usually contain language about what types of ethical behaviors and practices are expected from the company's employees, stakeholders and board members. They also include what types of unethical behaviors and practices will not be tolerated.
Function
Businesses use corporate ethics policies as a means of promoting ethical standards and preventing unethical actions. By having these documents as a resource for employees, stakeholders and board members, businesses may be able to minimize occurrences of unethical practices.
Benefits
According to the April 2005 issue of "Journal of Marketing Management," corporate ethics policies are beneficial to companies in that they help businesses communicate a positive public image about their conduct and corporate behavior.
Considerations
The "Journal of Marketing Management" advises that businesses should be aware of the dangers associated with communicating corporate ethics to the public, such as public cynicism and elevated stakeholder expectations.
