This website uses cookies to ensure you have the best experience. Learn more

Business Codes Effectiveness Essay

1772 words - 8 pages

Student Name: Tan Yong Wei Student No.:
Topic 1: Business codes are the most effective instrument for preventing unethical behavior in the workplace.
Business codes are widely used globally to prevent unethical means in the organization, an increasing number of companies have adopted business code ethics, 52.5% of Fortune Global 200 companies in 2004 (Kaptein, 2004) compared to 87% of Fortune Global 200 companies in 2008 (KPMG, 2008). Business codes are a set of official document disclosed by and for a business firm to guide the behavior of managers and employees (Kaptein and Schwartz, 2008). The business code prescribed are related to matters such as human rights, labor conditions, ...view middle of the document...

, 2002). Thus the organization may not be genuine about the business codes implemented, therefore ineffective in preventing unethical behavior. However other studies suggests that business codes are crucial for setting the tone, and unethical behavior tend to happen more frequently in organizations without a code (Peterson, 2002). An experiment done by Mazar et al. (2008) showed that raising awareness about existence of a business code led to less unethical behavior. Further studies made by M. Kaptein (2011), goes to show that other than existence of the code, must be accompanied by other factors such as content of code, frequency and quality of communication and embedment of code in the workplace by senior and local management plays an important role in ensuring the effectiveness of ethical behavior in the workplace. Firstly, content of the code must be précised and specific, as it determines the types of behavior acceptable or restricted (Benson, 1989; Finegan and Theriault, 1997; Cowton and Thomspon, 2000). Vague business codes are ineffective (Finegan and Theriault, 1997) as employees and management do not understand the code. However, precise and specific codes are not as significantly effective as communication (Clark and Leonard, 1998), as codes are not distributed and workers tend to not go the extra mile to find the business codes. Therefore leading to the second factor, frequent quality communications of the code. As business codes ethic are presumably ineffective unless distributed to employees (Wood and Rimmer, 2003), thus distribution of codes through memos, e-mails, newsletter/bulletins and showing videos are emphasized by scholars (Helin and Sandström, 2007; Murphy, 1988; Somers, 2001; Stevens, 1994, 2008). The frequency of the communication shows the sincerity the organization takes business code ethics and seriously the employees and managers should take it. The quality of communication of business code ethics includes 3 factors, namely accessibility, understandability and usefulness (Kaptein, 2011). Quality communications enables employees to understand and better execute the business codes ethics, thus leading to less unethical behavior (Kaptein, 2011). Lastly, embedment of business code ethics in the organization by senior and local management shows the presence of enforcement mechanism (Kaptein, 2008, 2011). The embedment of business code ethics by management servers the highest level of compliance to established ethical standards (Ferrell and Gresham, 1985). Embedment can be implemented in terms of role modeling and target setting by management. Commitment of management for integrating business ethics code in daily practices will result in ethical behavior of employees (Petersen and Krings, 2009; Weaver et al., 1999a). Thus, the mere existence of a business code ethics is a bad predictor of unethical workplace behavior, and have small meaning if the code’s implementation is not taken into account (Helin and Sanström, 2007). ...

Other Papers Like Business Codes Effectiveness

The Effectiveness of Business Ethics in Education and Today’s Workplace

2556 words - 11 pages The Effectiveness of Business Ethics in Education and Today’s Workplace October 13th, 2012 Introduction What do Bernard Madoff, Kenneth Lay and Rob Blagojevich all have in common? They all operated with no apparent ethical behavior even though each had received educational backgrounds in which ethical business practices were taught. As L. Zingales states, “While every firm can have its bad apples, when these apples are at the top, it

Unit 4 Task Sheet Essay

1601 words - 7 pages Information Act 2000; other relevant legislation, eg Computer Misuse Act 1990 Ethical issues: codes of practice, eg on use of email, internet, ‘whistle blowing’; organisational policies; information ownership Hand in date: Friday 8th November P6 explain the operational issues in relation to the use of business information [IE, CT] Task: for the same or any other business organisation, explain the operational issues in relation to

Human Resources Processes

696 words - 3 pages determine if there was improvement or if they need to make necessary changes. As a result, best employees will keep on developing their skills and get better, while mediocre employees might remain stagnant or quit altogether. SHRM’s Ethics and Corporate Social Responsibility deals with organizational and personal values and their expression in business decision-making and behavior. It emphasizes organizational codes of ethics but includes relevant

Integrated Marketing Communications and Customer Satisfaction

1142 words - 5 pages , new customers that come in, and website traffic can show how the advertising is working. (All Business, 2012) Lasting Impressions will use coupons with codes on them with our print ads offering discounts. The codes on the coupons will allow the company to be able to measure how many customers are coming in based on which ad or publication is bringing in customers. This will give us an outlook on what publications or ads are working and which are

Corporate Governance in Soccer

3895 words - 16 pages no-compliance can be used as a form of communication/response to the effectiveness of corporate governance. This encouraged FIFA to introduce the corporate governance code designed for the professional clubs in 2005 (Hamil et al., 2004). The code offers guidelines that encourage the soccer clubs to adhere to the principles of good governance. The compliance with these codes will be variably crucial in the future considering the fact that FIFA is

Harvey Industries

573 words - 3 pages business practice. This can be done on a quarterly or yearly depending on the effectiveness of the perpetual inventory system. After an effective tracking system is in place, the next area for improvement is a reliable forecast of demand. Since inventories are used to satisfy demand requirements, is it essential to have reliable estimates of the amount and timing of demand. For Harvey industries, most of the items they purchased were stocked

Sales Ethic Is an Oxymoron

1816 words - 8 pages Canadian Companies." Journal of Business Ethics. 15(4). Machan, T. R. 2007. The Morality of Business: A Profession for Human Wealthcare. Boston: Springer. O'Brien, Daniel P.; Shaffer, Greg 1994. "The Welfare Effects of Forbidding Discriminatory Discounts: A Secondary Line Analysis of Robinson-Patman". Journal of Law, Economics, & Organization. 10 (2): 296–318 O.’Dwyer,Brendan and Madden,Grainne (2006). “Ethical Codes of Conduct in Irish

Corporate Governance

3009 words - 13 pages stakeholders"(Tricker, 2012, p. 4). This assignment attempts to conduct a review of the structure, processes and effectiveness of the governance of TSTT. The Telecommunications services of Trinidad and Tobago's(TSTT) core business is the provision of telecommunications services to both local and overseas customers. The company is majority state owned, 51% and 49% by Cable and Wireless Caribbean. In this report we seek to review the board structure

Imo Essay

1176 words - 5 pages . (International Maritime Organization, 2013) IMO controls its effectiveness and key roles by conventions, codes, regulations, guidelines etc. The majority of conventions adopted under the auspices of IMO or for which the Organization is otherwise responsible, fall into three main categories. These are Maritime Safety, Prevention of Marine Pollution and Liability & Compensation. So, I could suggest that the numbers of categories might be


545 words - 3 pages situations and assures dealing with crisis. The leadership effectiveness deals with the following situations - self-confidence, humility, core self-evaluations, sense of humour, trustworthiness, sense of humour, enthusiasm, optimism and warmth, assertiveness, extraversion. Good leader motive in different types, they are power motive, drive and achievement motive, strong work ethic, and tenacity. An important character for good or effective leaders is

Role and Functions of Law Paper

814 words - 4 pages Role and Functions of Law Paper University of Phoenix Online Law 421 Rachel De Angelo November 6, 2014 Role and Functions of Law Paper The company that I have chosen for this assignment is my current employer, Hospira Pharmaceuticals, they are a global organization which conducts business in many different countries. In this paper, I will discuss the functions and role of law how it applies to Hospira’s ability to conduct business. I

Related Essays

Code Of Ethics Analysis Paper

2083 words - 9 pages directly impact the community. Because codes of ethic govern ones conduct, it is imperative for business to consider the effectiveness of such codes that are outlines in their profession. The purpose of this analysis is to analyze the code of ethics established by the Arrow. In conducting such an analysis, I will first determine what is to be considered based on importance, and why such codes are important, and a justification will proceed

Proffesional Issues And Practice Essay

1018 words - 5 pages Introduction In partnership with two friends we have opened a business providing a wide range of high quality complementary therapies to the general public. In this report I will be creating my own mission statement, codes of conduct and discussing two aspects of legislation which I think is important to running a business. I will also be discussing two regulatory bodies which I think is important the effectiveness of running a complementary

Code Of Ethics Essay

3802 words - 16 pages to promote efficiency and effectiveness, and the promotion of fair employee relations. This board would also be responsible for all disciplinary procedures including redress for clients. In Britain BASW maintains a disciplinary Board as required by the constitution. As the Barbados Association of Professional Social Workers revise their codes of ethics there is a need for the inclusion of disciplinary procedures which would outline how

At&T Challenges In A Global Market

1869 words - 8 pages forces on business and society. Next, evaluate the effectiveness of two (2) methods that the company currently adopts in order to manage environment issues. Answer: AT&T could ensure that their code of ethics will remain relevant through years of all the environmental forces changing if they elaborate more on all of their codes of ethics. It needs to be clear what is expected of all employees at all times regarding all issues that could arise