Awareness on code of business conduct

It has been observed in the past, that many companies had to shutdown in their businesses, due to the poor foundation of business code of conduct laid at the grass root level. This happens when companies do not pay much emphasis on establishing and nurturing their guideline for ethical behavior.

A good code of business conduct works is in tandem to ethical guideline for conducting business in an organization. This code of conduct in detail encapsulates integrity issues, legal implication of entering into illegal areas, defines ground rules for an expected, acceptable and non acceptable behavior and morals for the company and all who work with it.

The code of business conduct gives a bird’s eye view of the companies ethical integrity, professional behavior and practices at both macro as well as the micro level.

It also sets a clear ground rule for all external parties who would like to do business with the company. Most of them are investors, credit holders, customers, resources of the company, stakeholders etc.

Serious of impact In a code of business conduct: Whenever a company creates and develops a code of business conduct, it generates positive impacts from the environment.

  • Image correction and reputation enforcement: The Company can create an image in the market for itself that will set guideline for anyone who willing to shake hands with the company.
  • Better communication channels: the company with the help of the guideline opens communication channels across grades.
  • Openly penalizing for deceptive behavior: Since the ethical guideline document will contain rules and order, policies and procedures, the company would not shy from taking any strong decisions like firing the employee for unethical behavior & practices.
  • Society relations: the company in turn can offer fresh perspectives to the society and can win their confidence of settling down as a major player in the market.
  • Reduced legal liabilities: In the presence of strong code of business conduct, the company will deliberately try to avoid such decisions that will have illegal or law implications.

In order to implement a strong code of business conduct the board of directors as well as other decision making parties must consider the following key points:

Trickledown effect: The main heads of the company must be directly involved in the development of this ethical code and must demonstrate it so that the employees are encouraged to take the code of conduct seriously.

Rein still and re-enforcement of the value statement: It is imperative that the values statement of the organization is reviewed regularly and re-instilled in all who take decisions not only at the top level but also at elementary level.

Ethics training: The company must ensure that every one goes through basic awareness training on ethics at least once a year.

Involving external parties: Intelligent and wise company owners will also provision for an external parties involvement while the guideline are set, in order to have maximum buying from the external market.

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