Ethics Program for a Company - Essay Example

Ethics Program for a Company X Ethics program for a company X Introduction Corporate ethics program enhances the likelihood that workers would act morally at the work place, but compel them to act so. Codes of ethics are the set of principles that organizations use in decision-making. Depending on circumstances of a given code of ethics, act of penalties may result from the violation. Codes of ethics are imperative to assure the public that the organization is acting socially and professionally. Organizations that have established code of ethics have published procedures to guard them against malicious use of code for self-benefit. Company X should have an ethics program of values that defines a framework showing its commitment to operating its transactions with integrity (Brink, 2011). Company X prioritizes distinct values both internally and with its competitors, trade partners and customers. The chief executive officer of company X ensures that all employees adhere to specified values. The Ethics Program Company X is an organization that offers commercial insurance, professional liability, and surety bonds. Application of the term X throughout the code of conduct defines the entire X Corporation together with its division, affiliates, as well as its subsidiaries worldwide. The code that defines ethics program of Company X holds for all to employees and to broader extent applicable, X board of directors, marketers, suppliers, and agents. Company X code of conduct does not compromise the relationship between the company and its employees; neither does it guarantee a definite period. In addition, the ethics program maintains relationship between company X and its employees (John & Linda, 2010). The code is amendable to enhance compliance with new company policies and objectives. Because Company X is subject to many countries’ around the world laws, it is ethical for all its employees to comply with all laws that hold, rules and regulations. In situations where there exists a conflict between the established code and the legal framework, the law applies. However, the code of conduct supersedes and replaces the idea of making the right choice: the company x guide to conducting in the workplace. The following topics are the guides to Company X policies references to topics within Code of Conduct. Ethical Standards Financial and Product Integrity Code of Conduct of Financial Records, Control, and Fraud Because Company X investors and creditors among others hold a legal interest in the integrity of the company financial and accounting information, Company X is committed to demonstrating truthful, comprehensive, and complete financial records. The records must be perfectly accurate as well as implementation of appropriate control systems. Employees must at any time record and classify company transactions in proper accounting period and account department. Transacting staff must also ensure that they deliver reports that are complete to the regulatory authorities without falsified or distorted information (Dutelle, 2011). The reports must be understandable, focuses on accuracy and timeliness. Proper records kept must also bear internal records including expense reports; employment application materials and benefits claim forms. Under this code of conduct, each employee must neither deceive nor provide misrepresented facts. Company X does not tolerate any form of money or property fraud by employees to anyone. The company treats fraudulent as an activity of intentional misinterpretation and concealment of facts but not as a mistake. Inside Information The company makes its information that may not be available to external people accessible to some of its staff members if not all of them to enable them work effectively. However, any stakeholder such as supplier, competitor, employee, or customer who accesses this information must strictly keep it confidential and keep off using it for personal gain. Employees who share this information with potential competitors may face legal action. Company X does public disclosure of the necessary information through timely press release or filing reports with Security and Exchange Commission of the US via relevant channels and authorities. Afterward, company posts the information into www.companyx.com. The website post must take at least a full business day before company employees and their relatives start buying or selling Company X securities. Fair and Legal Competition (Antitrust) Company X is a global market competitor. Competition of the company does not allow improper actions that may injure another company, prevent its entry into the market as well as forcing it out of the market. Company X is committed to abiding by competition laws and standards of fair trade. Similarly, the company maintains strict compliance with strict U. S antitrust laws. Company X shall gather information about its competitors through intelligence, a legitimate practice in business, to help the company survive in the market environment. Company X acquires information about its competitors from newspapers, public filings and the internet. The organization strictly prohibits identity or material facts misrepresentation, computer hacking, espionage, trespass and concealment in an effort to gain competitive intelligence. Ethical Standards Ethical standards are the principles that an organization uses to promote values such as trust, fairness, and good behavior. Each company has the right to develop its standard according to its line of operation. Organization ethical standards may be as outlined in herein. Resolving Ethical Issues In the case of misuse of power, the employees must take the right action to lessen the misuse once they learn about it. Conflicts relating to law; if employees’ responsibilities conflict with law, the employee should show clarity of the conflict and take necessary actions steps to resolve the issues according to the set code of standard (Dutelle, 2011). Conflicts arising from ethics and organization demands; if there exists a conflict between organizational demands and the set code of ethics, employees should elucidate the conflict by taking reasonable steps according to the set ethics code. Ethical Procedures A properly outlined code of ethics should discourage people from committing unethical acts and incorporate procedures for discipline as well as the consequences of unethical actions. Organization support of code of ethics is established when an organization has implemented procedures that will maintain the organizational effectiveness of the code. These procedures may include; Guidelines for the filing of complaints; the procedure must not be intimidating and easily understood. Secondly, Guidelines for receiving complaints; each complaint must be received properly and recorded and finally, Guidelines for the investigation of complaints. Ethics Training Company X has a high-level manager and the Board of Directors responsible for ethical compliance program that facilitates ethics training. Presence of the committee and managers significantly enhance its administration and oversight. Employees’ ethics training is necessary for it helps them identify ethical issues and their resolution. Training helps employees understand the firm’s policies and expectations, the resources available, support systems, laws and regulation and the consequences of violating them. According to Allan and Robert (2010), ethics training is important for creating a moral culture. Furthermore, training helps in attracting and retaining as well as improving the quality and competence of employees. Ethics training program teaches the employee about value and ethics. Training offers them the opportunity to practice the application of company values and the code of ethics. Consequently, employees find it easy for them to recognize and deal with dilemmas when such situations arise. Company X makes ethical training program mandatory for it to be more effective to the employees. Training includes a copy of company’s code of ethics, which is a discussion of relevant abidance (Dutelle, 2011). Ethics Program Implementation and Effectiveness Company X does not stop at developing and establishing an ethics program. High-level personnel, preferably the chief executive officer who reports to the board of directors, must sign compliance program implementation and effectiveness. Implementation measures intend to make it more likely that employees obey the code of ethics. Implementation measures refer to all the efforts ensures the adherence of the code norms. Company X backs its code of ethics with sanctions to employees who do not comply. Codes without sanctions cast doubt on the sincerity of the code establishment and lead to questioning whether the company strives for code effectiveness (Brink, 2011). Improving Ethics Programs after Implementation Improving ethics program may be prompted by the necessity to measure its compliance with the requirements of moral values as outlined in statutes, policies, and regulations. Improvement is also important in measuring how effective and efficient the program may be as far as systems, processes and routines are concerned. Deputy Ethics Counselor (DEC) is the personnel responsible for implementing the process. Financial disclosure and review of the organizational structure are among the ethical programs that frequently require improvement. Areas of weakness may require frequent evaluation and determination in the system to carry out improvements where necessary. References Brink, A. (2011). Corporate Governance and Business Ethics. Dordrecht: Springer Verlag. Dutelle, A. W. (2011). Ethics for the Public Service Professional. Boca Raton, FL.: London: CRC ; Taylor & Francis. Read More