See Article History Corporate code of conduct CCCcodified set of ethical standards to which a corporation aims to adhere. Commonly generated by corporations themselves, corporate codes of conduct vary extensively in design and objective.
Code of Ethics Code of Ethics Law and Legal Definition A code of ethics is a set of principles of conduct within an organization that guide decision making and behavior. The purpose of the code is to provide members and other interested persons with guidelines for making ethical choices in the conduct of their work.
Professional integrity is the cornerstone of many employees' credibility. Member of an organization adopt a code of ethics to share a dedication to ethical behavior and adopt this code to declare the organiation's principles and standards of practice.
Additional Definitions 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.
If such sanctions are absent, the code is just a list of pieties. The most severe sanction is usually dismissal—unless a crime has been committed.
Business ethics emerged as a specialty in the s 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 behavior includes more than simply legal behavior.
It is unethical to lie, for instance; but lying is against the law only under certain limited circumstances: Business ethics, and the codes that formally define it, always include elements that go beyond strict legality; they demand adherence to a higher standard.
In the wake of the Enron and Worldcom corporate scandals, codes of ethics have taken on yet another dimension. Legislation passed inthe Sarbanes-Oxley Act "SOX"requires that corporations whose stock is traded under the provisions of the Securities Exchange Act of must publish their codes of ethics, if these exist, and also publish any changes to these codes as they are made.
This requirement has given corporations strong incentives to formulate codes of ethics in order to win investor confidence. Most small businesses, of course, are not regulated by the Securities and Exchange Commission SEC because they do not issue publicly traded stock; thus they are not affected by SOX.
Perhaps the best-known code of ethics in history is the Hippocratic Oath taken by all doctors.
Contrary to common belief, that oath does not include the phrase "First, do no harm. 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.
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 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.Corporate Governance The Hershey Company ("Hershey" or "Company") sets high ethical standards for the Company and our directors, officers and employees.
Integrity was a key value of the Company when it was established by Milton Hershey more than a century ago, and it remains an essential part of our culture to this day.
Full Code of Ethics (PDF) Code of Ethics Our aim is for Whirlpool Corporation and its worldwide subsidiaries to be known, trusted and respected as one of the top enterprises in the world.
This Code of Business Conduct and Ethics (the “Code”) applies to directors, officers and employees of Power Corporation of Canada (the “Corporation”) and its wholly owned subsidiaries, unless a comparable Code applies in respect of the subsidiary.
Full Code of Ethics (PDF) Code of Ethics Our aim is for Whirlpool Corporation and its worldwide subsidiaries to be known, trusted and respected as one of the top enterprises in the world. ARTICLE 1: CORPORATION VALUES. Controlling and organizing the rules of conduct and code of ethics in SABIC can be achieved by encouraging the following values: Inspire our employees by empowering them with a clear and common understanding .
Code of Conduct - Sweden (PDF, 5 MB) Code of Conduct - UK (PDF, 5 MB) On August 31, , McKesson updated its Code of Conduct to reflect rebranding of its business operations in the European Economic Area and European Union under the consolidated name McKesson Europe, including translated versions for each of the different sub-brands and countries in which the company operates.