Ethical decision making as per corporate code of ethics

Ethics as per the dictionary meaning would refer to the specific rules and standards applied to a group of professionals in a corporate. Corporate code of ethics on the other hand would mean code of ethics defined by a corporate, for the corporate for its better functioning in different situations.

Whenever a corporate acts ethical, it would mean that every staff working in it is acting in accordance with the values and principles that are accepted by the corporate. Every ethical code is considered to be either acceptable or unacceptable.

Corporate code of ethic is directly related to making ethical decisions at the business level. In order to arrive at these decision the corporate as well as individuals must follow the following steps:

  • The first step is to identify the situation in hand and the issues related to it. In this step the corporate/ individual will get into collection of data and facts with an unbiased mind.
  • The second step is to list down all the decisions related to the situation. Weigh all the alternatives and see how each alternate decision will impact the other alternate. How can we arrive at a win-win-win situation from the employee, the customer, and society’s perspectives.
  • Narrow it down to a single decision: The corporate code of ethics use the funnel approach to select a single decision.
  • Finally analyze the results: In the end when the corporate takes a decision in a particular situation, they do a detailed analysis of the impact of a decision in a specific situation. At times the impact of the decision on the short run is good and powerful however loses its impact in the long run or vice versa. Another perspective is to see if the ethical decision making can be used for future decision in similar situation or not.
  • Document these decisions as either good or bad case studies for future reference.

One of the basic equipments of a corporate code of ethics is to ever time make ethical decisions for the long term success of the corporate. It is a known fact that whenever a corporate runs within the boundaries that it has set for itself as per the code of ethics it earns respect from all like the employees, suppliers, customers, credit lenders and the society.

The increase in respect and trust on the company yields loyalty from the end-user of their services or products. This will have a direct impact on the corporate success ever a period of time. Following the corporate code of ethics has a boomerang effect. Employee’s who make ethical decisions at the ground level further become role models for others and this gives commitment and growth to the employees.

Most corporations, while creating a code of ethics for itself, also incorporate the same at the employee level implementing it a cultural base for the corporate. Corporate code of ethics practice thus, no doubt will promote long term success of any corporate.

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