Three Main Components of Code of Conduct of Cookson Group - Case Study Example

?Business Ethics Table of Contents Table of Contents 2 Introduction 3 Critical Analysis of 3 Three Main Components of of Conduct of CooksonGroup plc 8 Conclusion 12 References 13 Bibliography 14 Introduction Business ethics is fundamentally described as the application of ethical ideas in business for performing business activities in accordance with ethical standards. An application of a standard ethical behaviour facilitates a business to perform different activities effectively as well as assists a company in executing operations with profitability. Moreover, business ethics aids a company to develop better relationship with the employees as well as the customers (Venugopalan, 2011). Cookson Group plc is a leading multinational company dealing with material science relating to substances as well as chemicals that are required in the production processes of industries such as steel and electronics among others. Moreover, the company is facilitated with enhanced technical services as well as with better R&D facilities. Furthermore, the company performs business activities based on ethical standards as well as quality (Cookson Group plc., 2011). The discussion will emphasize upon critically analysing the code of conduct of Cookson Group plc. Moreover, identification of three major components that demonstrates the values as well as the business ethics of the group will also be portrayed in the discussion. Critical Analysis of Code Code of conduct of different companies signifies that the employees of the companies are required to perform their respective functions complying with the moral standards as well as the values. It has been apparently observed that several companies have given much importance to improve ethical performance within the workplace for encouraging the employees to perform their activities in an ethical manner. Moreover, codes of conduct are viewed to be the statements of values as well as ethical standards of companies. Furthermore, code of conduct provides terms as well as conditions in accordance with the operations of a company that are required to be conducted. It also provides standards for sustaining a better environment as well as in maintaining health as well as safety of products or services that offers by a company. Codes of conduct are formulated on the basis of certain specific sector or issues with the motive of minimising or eliminating those issues as well as to improve performances of those sectors (Mamic, 2004). Code of conduct generally comprises certain major components such as code of ethics and value statements among others. A code of conduct generally signifies a written statement stating the behaviour which is to be adopted by the employees while performing their individual functions within a company. Furthermore, code represents the desire of the management of a company to implement certain specific policies as well as values for conducting business operations in an efficient manner (Venugopalan, 2011). There are varied factors that influence code of conduct which comprise corporate culture prevailing in the working environment of a company as well as standards that are utilised for measuring behaviour of the employees as well as the performances of a company. It has been viewed that code of conduct primarily depends upon the resources that are utilised for monitoring as well as implementing the procedures within a company. Training facilities provided to employees can also be considered to be an influencing factor of code in a company. Furthermore, communication system as well as flow of information in the workplace of a company determines company’s code of conduct (Mamic, 2004). Code of conduct is required to be developed with an appropriate language. In this similar context, code of conduct of a company is required to be communicated in languages which will be appropriate for the audiences such as customers and investors among others worldwide. Code of conduct represents certain values as well as standards to be followed for performing operations with appropriate business practices. Furthermore, the codes which adopts by a company are required to be clear. Code of conduct of a company is formulated in hard as well as soft language. The code should be drafted in an appropriate language concerning the fact that language chosen for a code depends on the responsibility undertaken by a company and also on the extent to which principles determined in a code of conduct are to be enforced. Hard code language signifies that principles as well as standards mentioned in code of conduct of a company are specific as well as precise. Moreover, principles or values in code of conduct are defined in an elaborate manner. Company using hard code language are committed in following principles as well as standards mentioned in code of conduct. Conversely, Soft code language signifies that values as well as standards mentioned in code of conduct of a company are framed in a quite general as well as a loosely defined manner. Furthermore, for effective sharing of values as well as standards, companies are required to establish an appropriate method of communication with the employee and other interested parties (Mamic, 2004). There are certain advantages of performing business operations of a company by maintaining ethical standards as well as values. In this regard, business ethics assists in improving society by eliminating child labour as well as poverty where a company operates its different functions. It aids in tuning up the behaviour of the employees in terms of performing their respective operational functions with better integrity as well as active cooperation. Moreover, business ethics would also assist the employees to perform various operational functions with confidence. Furthermore, it helps in identifying values as well as standards that needs to be appropriate for enhanced performance of a company (Crane & Matten, 2007). Cookson Group plc performs its different business operations by establishing as well as implementing code for the employees with the intention of enhancing the overall business performance of the company. In general, the Code is a requisite set of standards that are required to be followed by every individual who are involved with the company. Moreover, the companies possess certain Code with the motive of building greater business reputation and most importantly to accomplish significant competitive position over the chief business market competitors. The success of a company is not only determined through assessing its financial performance but also evaluating the relationship developed with the employees as well as the customers at large. Furthermore, the company performs business operations with the intention of benefiting society as well as investors of the company (Cookson, 2012). The code of conduct of Cookson Group plc is evaluated on a regular basis. The company periodically take deliberate steps in order to track the performances of the employees through its establishment of effective code of conduct. Moreover, employees of the company are encouraged to interact with the management regarding any issues or concerns that might arise due to conflict in behaviour as well as in making any significant decision. Furthermore, the workforce belonging to the company are facilitated with Employee Business Concern Helpline that operates in a constant manner. The employees are also facilitated with email as well as web-based services for registering any issues relating to faulty practices performed within the company. The issues which are lodged are provided to the Head Office of Cookson for conducting investigation that handles by the designated team of the company (Cookson, 2012). Cookson Group plc has developed a code of conduct which is commonly known as “the Cookson Code” for performing business operations in accordance with specified standards as well as principles. Moreover, the company has provided the code of conduct throughout the Group in more than 25 languages in accordance with maintaining the ethical standards as well as values. The Code highlights the commitment of the company to perform with preserving specified legal standards as well as ethical behaviours. The company has formulated different principles of Code in a precise as well as in a simple way relating to the investors, customers, products and services, conflict of interest, employees, competitors, health, safety as well as the environment and society along with local communities (Cookson Group plc, 2011). The main objective of Cookson Group plc is to provide better customer satisfaction on a long term basis. Moreover, the company also aims at performing business operations with enhanced integrity as well as in developing healthy relationship with the customers as well as the suppliers. Furthermore, the company seeks to perform its different business operations in an efficient manner as well as comply with national as well as local laws and regulations (Cookson Group plc, 2011). In relation to determine the code of conduct, it has been viewed that the company has formulated an anti-bribery as well as corruption compliance programme worldwide. In the year 2012, the company has established an e-learning module which is circulated across the company worldwide with respective local languages (Cookson Group plc, 2011). Johnson Matthey PLC is considered to be one of the major competitors of Cookson Group plc that also perform its business activities in accordance with maintaining specific standards. The company endeavours to offer superior quality of products to its valuable customers in accordance with their preferences and desires. From the perspective of the employees, the company attempts at developing the behaviour of the employees by following the policy of effective business integrity and responsibility (Johnson Matthey, 2012). Therefore, it can be observed that Cookson Group plc has specific values as well as standards in accordance with which the company is required to perform business operations worldwide. The code of conduct of the company is formulated especially for the employees to operate different operational functions in an ethical manner. Furthermore, the company has also formulated other policies as well as programmes with the intention of improving business environment as well as ethical behaviour of employees by a considerable level. In addition, the employees are facilitated with a 24-hour helpline facility for lodging any issues or concerns that might arise while making any significant decisions by the management of the company. Three Main Components of Code of Conduct of Cookson Group plc The three major components that demonstrates the values as well as the business ethics of Cookson Group plc has been described hereunder. Customers, Products and Services The company aims at developing a long-term association with its valuable customers for the purpose of accomplishing expected business targets. The company also aims at developing a strong relationship with the suppliers as well as the distributors along with the business associates by a greater extent. The prime objective of the company is to provide better quality products that are reliable as well as safe to the customers in accordance with their preferences and desires. Moreover, the company also aims at providing enhanced services to its valuable customers. It has been observed that the company also provides precise as well as clear information in relation to products as well as services. Furthermore, the company also ensures that the employees as well as the other individuals such as suppliers, agents among others are not involved with any corrupt practices. Individuals involved with the company are monitored that they do not seek any advantage for personal interest while conducting business operations. With regard to determine the code of conduct concerning the deliverance of quality products or services to the customers, the company strongly realised that different information belonging t the company should be kept confidential for performing business activities in an ethical manner. Also, products or services that offer by the company should maintain the environmental standards that might not affect the overall business performance of the company by a greater extent. In this regard, the company aims at developing innovative products as well as services for the motive of enhancing its profitability along with productivity (Cookson, 2012). Social and Local Communities Cookson Group plc performs business activities in accordance with local as well as national laws and regulations. Moreover, the company also performs business operations with compliance to government regulations as well as political system. Furthermore, the company also ensures that the taxes are paid in an appropriate manner. The company monitors that the Group performs different business operations without any personal interest. The company totally prohibits bribery and affirmed that none of the individual involved with the company should accept any sort of payment through any inappropriate manner. In this similar context, the company is required to be aware of local culture of places or locations where operations are conducted. This awareness about the local culture would eventually facilitate the company to operate accordingly that will assist in better development of community as well as society. Furthermore, places as well as in locations where the company performs its business operations would assist in providing employment opportunities as well as in developing the society with better culture. The company has devised plans to perform its various business actions with minimum environmental impacts concerning the reduction in emissions that arises from the greenhouse gases and also decrease in energy consumption. All the aforementioned aspects would eventually enable the company to conduct its business operations in an effective manner both in local as well as in national level (Cookson, 2012). Employees The employees of Cookson Group plc are fairly treated as well as individual involved with the company are respected with dignity. Moreover, the employees are provided with better working conditions in a more productive manner for improving their operational performances. The employees are offered with better training as well as development facilities in order to enhance their skills as well as augment their career opportunities. It has been viewed that the company broadly values the ideas as well as the opinions of its employees at large. In this regard, the management of the company engage its employee while making or adopting any significant decisions. The employees are remunerated in accordance with the standard of work performed as well as to the extent to which the works assist in successful accomplishment of the objectives of the company. The management of the company intends to make use of effective policies as well as procedures for better settlement of disputes among the employees. The records of the employees are required to be kept confidential for better management of the employees. The employees are also facilitated with better health as well as safety policies with the motive of minimising accidents as well as any sort of uncertain circumstances. These are the varied facilities which are provided to the employees for enhanced productivity as well as the performances throughout the company worldwide (Cookson, 2012). Conclusion Cookson Group plc is a multinational company that deals with material science. Moreover, the company provides chemicals as well as substances that are required in the production process of steel and electronics among others. The major objective of the company is to conduct business activities in an ethical manner. The code of conduct of the company contains certain values as well as standards that are frequently updated for the purpose of complying with the laws as well as the regulations in different countries in which it performs various business activities. The company took every requisite step in order to perform business activities in accordance with the principles mentioned in the code of conduct. It has been observed that the company provides utmost priority to the code of conduct for conducting business activities. The three major elements that demonstrate the values and the business ethics of the company include customers, products as well as services, social along with local communities and employees. These three important components are included in the code of conduct of the company. Thus, it can be concluded that these are the standards as well as the values that follow by the company for enhancing its overall business performance and most significantly for minimising disputes as well as environmental impacts by a greater extent. References Cookson Group plc., 2011. Leading Material Science. Annual Reports. [Online] Available at: http://www.annualreports.com/HostedData/AnnualReports/PDF/CKSNF2011.pdf [Accessed December 29, 2012]. Cookson, 2012. Code of Conduct. Documents. [Online] Available at: http://www.cooksongroup.co.uk/cooksongroup/assets/lib/documents/2Cookson_English_CodeofConduct_Oct2011.pdf [Accessed December 29, 2012]. Crane, A., & Matten, D., 2007. Business Ethics: A European Perspective. Oxford University Press. Johnson Matthey, 2012. Business Integrity and Ethics Policy. Johnson Matthey. [Online] Available at: http://www.matthey.com/file.axd?pointerid=2d45a321b2a54e38ac82914e02255a06 [Accessed December 29, 2012]. Mamic, I., 2004. Implementing Codes of Conduct: How Businesses Manage Social Performance in Global Supply Chains. International Labour Organization. Venugopalan, K., 2011. Management Concept & Business Ethics. Study Material. [Online] Available at: http://www.universityofcalicut.info/syl/ManagementConceptsBusinessEthics.pdf [Accessed December 29, 2012]. Bibliography Chryssides, G. D. & Kaler, J. H., 1996. Essentials of Business Ethics. McGraw-Hill. Fisher, C. & Lovell, A., 2006. Business Ethics and Values: Individual, Corporate and International Perspectives. Prentice Hall. Read More