The Importance Of Code Of Ethics In Business Environment (Essay Sample)

Codes of Ethics
Surname/Name
Name of the Institution
Codes of Ethics
Introduction
The business world is growing each day. Many corporations and consulting firms are being built and being contemplated on. Indeed, the business industry has developed further than the last century. However, on the foundations of these businesses are the personal attributes, personal duties and prospects; at the heart of these development are the morals, business foundations and professional practices which help in reaching the ultimate future. All these standard practices involve prospects of creating a suitable environment for the growth and development of various corporations. All these principles and practices are summed as the codes of ethical standards corporations. Summarily, a code of ethics can be defined as the set principles, rules or procedures that are used or followed by business organizations and institutions, even individuals to govern and control their decision-making processes. In short, a code of conduct is routine procedures and perspectives that regulate the practice of a particular organization or set of a group. Codes of conduct have largely been popular recently, due to ensuring of credibility and honesty of various organizations and business institutions in the face of the public and business individuals (Rhode, pg. 123).
There are a number of reasons which are attributed to the creations of code of ethics programs in the business industry. First and foremost, one would be the establishing a credible process of dealing with issues that affect business institutions either negatively or positively. A clear procedure that will guide employee’s morale and professional ethical behavior, also the procedures provide ways to deal with employee’s behavior. Secondly, the codes of ethics will also provide for perspectives that can review processes that protect or guard organizations against malicious and personal use of institution codes and resources for the self-gain. The main significance of code of ethics is to provide for controls in the use of institution resources and the protection of related particulars and individuals.
As this is a private consulting firm with a small number of employees and dealing with money from non-governmental institutions, there is a need for a code of ethics to provide more closure and credibility in dealing with the funds and the offering of services. This company is a management consulting firm which offers the management services and solutions in the administration of the respective organizations which are funded by the government (Rhode, pg. 37). Indeed, these kinds of organizations are required to provide a clear definition of their operations and how they use their money. Hence, the codes of ethics will provide a clear way of how the firm operates and the available procedures of executing various services that are offered by the company.
To provide a clear code of ethics, the company has created four sections that are crucial.
Appropriate Standards and Procedures
These are a section that will provide the appropriate professional standards and procedures that are followed by the employees and partners of the consulting firm. The consulting firm is guided by principles that are based on the societal business values (Valmaer, pg. 28). The consulting firm demands the following standards and values to:
Partners
As a partner of the firm, it is your responsibility to enrich and sell the name of the firm in accordance with the set rules and regulation i.e.
* Listen carefully and follow the partners
* Respect and follow the majority decisions of the fellow partners
* Recognize and respect that all the authority in meeting all legal requirements and perspectives is particularly vested on the joint partners.
* A partner should be able to be well informed about all developments that may arise and relevant to the activities of the firm and respective partners.
* A partner has a responsibility to participate and attend all partner meetings and respective actions.
* Every partner has a duty to present to the firm or other partners any issue or activity that is or may affect adversely the activities and credibility of the firm.
* Every partner has a duty to interpret the respective needs of those who serve to the non- profit and ensure that those needs are presented and furnished with accordingly.
* The partners also have a duty to take a complaint or any issue raised by the employees or clients and present it to executive partners council or deal with it, wherever it is applicable, considering the weight of the matter.
* Every partner should be able to recognize that his/her job is to ensure a non-profit is managed very well, but not to be able to manage the non-nonprofit. This is prior to the specifications of the agreement with the organizations.
* Each partner has a responsibility to represent everything the firm prescribes to- clients. He/she should be able to serve all the clients of the firm without prejudice or favor.
* Each partner is considered the sole managing partner of the firm, hence, one should ensure that the resources, portfolios and clients of the firm are maintained and protected at all times. Also, they should ensure that the firm is financially secure, is growing and becoming better and operating for the best interests of the clients
* Every partner should be able to declare all kinds of conflicts of interests that arise between personal life and a partner of the firm.
* A partner should not be able to criticize the fellow partners or rather their opinions, in and out of the firm
* A partner should not use the clients and other related organizations for personal gain or the gain of his friends and even family.
* Should not discuss or sell the confidential matters and proceedings outside the firm
* Should not interfere with the duties and activities of the employees or other administrators (Valmaer, pg. 78)
Employees
Employees’ code of ethics conducts appropriate standards and procedure like those of the partners, but limited to the duties and responsibilities they hold to the firm i.e.
* Every employee has a duty to present to the firm or partners any issue or activity that is or may affect adversely the activities and credibility of the firm.
Every employee has a duty to interpret the respective needs of those who serve to the non- profit ones and ensure that those needs are presented and furnished with accordingly.
Every employee should be able to refer their complaints to a proper level or using the required channel
Every employee should be able to recognize that his/her job is to ensure that a non-profit is managed very well, but not to be able to manage the non-nonprofit. This is prior to the specifications of the agreement with the organizations.
Each employee has a responsibility to represent everything the firm prescribes to clients. He/she should be able to serve all the clients of the firm without prejudice or favor.
Each employee works better and knows how to work better.
Every employee should be able to declare all kinds of conflicts of interests that arise between the personal life and partner of the firm (Valmaer, pg. 68).
Conflict of Interest Policy
This is a policy that will help curb any conflict of interest that may arise from the partners or employees to the operations and confidential information of the firm, clients or organizations associated with the firm (Scot, pg. 45)
* If there is a duality or expectations of interests on the part of the partners or employees, it should be disclosed or presented in any way possible to the Executive. Then it will be discussed and presented in matter of record, writing, or procedure, as they are a matter of the firm or effects on other partners. Any issue that the partners or a member of firms feels conflicts him/her or a matter of interest that member should not vote.
* The minutes that involve the discussion and the decision of the matter and the quorum that was affected should be presented and put into record.
Appropriate Ethics Training Program
An organization needs an interactive vehicle to continue enriching it with prospective moral ideas and foundations. Hence, the firm has taken a training program that is aimed at describing and identification of professional and personal values that are aimed at developing the firm to a better ethical direction. The firm undertakes a regular professional ethical training program ran by the human resource and empowerment department with the support of a private ethics training company. The program will involve both the partners and employees at all levels, (Ferrell, 2013). The firm also will undertake ethics survey...