Social Performance, part 2 - Essay Example

Many financial industries, especially those dealing in financial services, have codes of conduct. The table below shows the codes of a competitor to Pioneer Financial Group and criticism of their codes. COMPANY CODE OF CONDUCT CRITICISM SERVICES OFFERED LINCOLN FINANCIAL GROUP Fairness Respect Employee Ownership Diversity Responsibility Integrity Commitment to Excellence They have stringent do’s and don’t’s, and their employees feel that if something is not specified in the code of conduct, then it is acceptable.

Life insurance Annuities Retirement plan services Group protection AF FINANCIAL GROUP Honesty and fair dealing Workplace environment Compliance with laws and regulations Conflict of interest Gifts Records and reporting information Political activities Insider trading Revoked their contract with Lowerell as their independent auditors without giving them notice as this contradicts their code of honesty and fair dealings with other intermediaries Insurance services Loans such as mortgage loans Offers business services such as checking accounts CUNA MUTUAL GROUP Integrity in the workplace Integrity with company resources, information and financial disclosure Integrity while dealing with others Integrity with business conduct Faced with challenges of measuring the effectiveness of their program, though they have ambitious programs and codes of ethics Crop insurance Retirement planning for members and small businesses Insurance for union members Trevino and Nelson (2007) define business ethics as behaviors that are in line with the principles, standards, and norms of practice that are in accordance with the society.

Pioneer Financial Group is facing a conflict of interest of some shareholders, side deals done by employees, and corruption. Establishing an ethical business culture is one way of improving the corporate governance. Pioneer Financial Group should have ethical codes that promote ethical behavior. This guides employees in cases where ethical course of action is not clearly known. The codes help the company to communicate their expectations to employees, communities, government, and other stakeholders.

The codes do promote market efficiency, build public trust, enhance business reputation, raising awareness on the societal needs, and help the company reinforce and acquaint new employees with their values and culture. Pioneer Financial Group have put in place training programs regarding ethics in the company that are designed to offer real solutions to those employees under ethical dilemma. A code of conduct or ethical code sets out the company's values, ethics, objectives and responsibilities.

Pioneer Financial Group will have the following code of conduct: COMPANY CODE OF CONDUCT PIONEER FINANCIAL GROUP (PFG) HOW TO DEAL WITH COMMUNITIES HOW TO DEAL WITH COMPETITORS GOVERNMENT ®ULATORS,EMPLOYEES,SUPPLIERS AND INTERMEDIARIES Take into account community concerns Providing good employment opportunities Support communities through Charitable donations Seek competitive advantage through superior products and performance Avoid discussing confidential information with competitors Not engaging in restrictive trade practices that abuse market dominance Not evade tax Report and record all reportable transactions Giving room for employees to air their grievances about the company Encourage freedom of association Providing safe & healthy working environment Rewarding employees who observe ethical behavior Providing quality products and