Theimplementation of ethics code (also known as)”codes of conduct or ethics policies) play avital role in the development of global organisations. A corporate’sethics code should serve as thefoundation where individuals must make decisions based on trust, integrity,honesty and confidence REFERENCE.
According to Nieuwenhuizen and Oosthuizen (2014), businessethics are vital for corporations as they define the values and morals of anorganisation. Currently, the importance of ethical business policies hasincreased due to globalization of economy that has contributed to theconsistent growth of competition between companies. Formal, well-communicated codes of conduct are aimed to influence behaviour by outlining the mission, values and thetype of behaviour desired and expected from employees and other stakeholdersfrom an ethical point of view within an organisation (Crane and Matten 2015). To be effective, the development and the implementation of ethicalpolicies need to be carefully considered. Codes of conduct should reflect thetrue values and behaviours that an organisation would like to maintain. This paper will analyse howethical codes shape the ethical behaviour and experiences of individualsinvolved within specific companies and examine such standards of behaviour byresearching the company’s activities.
Furthermore, this paper will considercorporate (managers,workers, board etc) ethics and morals as actors, who can act in a wrong or right manner although “ethicscodes” specifies the standard of ethical behaviour to which every individualaspires to. How codes of conduct shape ethical behaviour of individuals inan organisation:According to Crane and Matten(2015), implementing codes of conduct is a key skill for managing businessethics, as it enables managers to develop and adopt appropriate rules to createrealistic modes of behaviour which applies to everyone, from the board ofdirectors to the newest employee. An employee’sbehaviour is highly influenced by such policies as a study carried out by MarkJohn Somers shows how such policies shape ethical behaviour, by developing codes of conduct that define theirexpectations.
The behaviour of employees depends on how effective the ethical policies are, and theindividual’s ability to interpret and apply the policies to a variety ofsituations REFERENCE.Applying ethicscode in business to change unethical behaviour has become one of the mostchallenging issues. An effective program of ethics requires involvement andcommitment from employees at all levels. The constituents should ensurecommitment towards ethical behaviour at all levels.The Primary aim of McDonaldsethics code is to provide a sustainable work environment, respect all itsemployees, help local communities, provide clean, hygienic restaurants and asafe atmosphere for all customers REFERENCE. Codes of conduct is acrucial part of the corporation’s ethical framework where policies are implementedto guide all managerial decisions, creating a system where decisions areinitiated. Numerous policies andprocedures are in place to guide and promote ethical behaviour within modernorganizations.
Crane and Matten (2015) defines ethic codes as “a voluntarystatement that commits an organisation, industry, or profession to specificbeliefs, values, and actions and/or that set out appropriate ethical behaviourfor employees” (Crane and Matten 2015, pg.190).McDonald’s main priority istheir members rights. McDonalds has developed a strategy that allows theemployees relative freedom in working with the firm. The implementation of thepolicies has given the workforce the opportunity to behave freely. Furthermore,McDonalds wants its employees and board members to always deal in a fair mannerwith customers, investors, business partners, service providers, competitors,the public and one another.
The codes of conduct will ethically change thebehaviour of staff members as they would be required to always act withimpartiality and professionalism to ensure that the expression of personalviews and convictions do not compromise the performance of their officialduties. Part of McDonalds code ofconduct policy is their duty to make sure they buy good quality food fromsuppliers. Implementing ethical policies prevent McDonalds from making baddecisions such as purchasing goods from foreign suppliers who employ childlabour, pay substandard wages, or have sweatshop working conditions in theirfacilities.
The firm has created a culture where every worker is respected andgives every individual priority as they believe it is the workforce who holdthe key to its valued success. Making individuals know how important they areand valuing them has enabled McDonalds to improve its service provision to itsclientele.Showing customers that they value integrity willsignificantly shape the behaviour as they will feel reassured by the existence of codesof ethics within a company as they feel that the company values its integrityand will operate accordingly when doing business. NS1 According to Laufer and Robinson(1997), when employees witness managers following ethical policies itpositively effects other individual’s behaviour to also act in accordance withthe codes of conduct. A study showed that management accountants working inorganisations with corporate codes report less wrongdoing than respondents inorganizations without formal codes.
(Somers, 2001). Furthermore, Scalet (2006)stated that organisations who had adopted codes of conduct created patterns oftrust amongst employees. These studiesclearly show that ethical policies encourage managers and to act withintegrity.