Evaluation of Ethical Code of Conduct - Coursework Example

Evaluation of Ethical Code of Conduct 1. Bestbuy.Com Code of Conduct Bestbuy.com is an ecommerce website. It sells various products like consumer electronic goods, books, beauty products, apparel and art crafts. The website offers ample affiliate selling opportunities to hundreds of people who popularize its products in their blogs and social media websites. The website has customers from all over the world. It is operating for more than 6 six years and is famous for providing ample discounts on products at special occasions and festivals. BestBuy.com aims in following all the laws regarding code of ethics formulated by the US government. BestBuy.com framed a rather simple code of conduct. It has three main points Act according to your conscience Put the customers in front of your needs Give ample importance to data security Ebay, Amazon and Rakuten Code of Ethics Comparison Ebay and Amazon are two famous websites based on whose model Bestbuy.com operates. Ebay's ethical code of conduct is subjected to various the criticisms by the sellers connected with the site as well as the buyers dealing with them. The company's code of ethics states it "respects everyone as a unique individual" and "encourages people to treat others the way they want to be treated themselves". But, the well known secret is that it does not operate that way. The initial ethics followed by the company nurtured the sellers which paved for the massive growth of the website. Nowadays, their ethics have dwindled a lot. They charge enormous amount for sellers ($250 final value fee) and have cut various privileges given to them like flexible working hours. The company’s ruthless activities, enormous profits and the massive complaints mounting against it are responsible for the amendment in the USSC corporate sentencing guidelines indirectly. Amazon and Rakuten.com are two other major eCommerce sites in the US. Their code of ethics is nearly the same as eBay. But, they give ample importance to their affiliate sellers. Amazon code of ethics states employees are expected to act with common sense and use their own judgement rather than following the rules. Their code of ethics clearly states employees are expected to act according to the best interests of the company if there is a conflict of interest arising between their personal interests an relationships with customers. They strictly forbid insider trading and expect every person working for them to comply with the US government’s rules and regulations on ethics (Corporate Governance Website, 2011). Failing to follow such rules resulted in IBM Canada failing to protect customer's important data. The company paid a fine of $3.6 million because their employees misused a CD containing confidential information about their customers. Amazon is very careful not to enter into any such issues. Rakuten also states they "respect human rights and individual dignity" and aim in acting fair to all their staff and customers (Rakuten Website, 2006). The code of ethics of Rakuten is also subject to debate though it is not as scrutinized as that of eBay. They are criticized for charging their customers more than their competitors and defying from some basics like refusing to take back damaged products. But, the company strives because of the quality of the products it supplies. 2. Ethical Challenges The above mentioned goals eliminate the need to worry about data theft which is the major problem faced by the eCommerce companies. Similarly, they give the employees the freedom to serve the company without any particular restraints. But, they are made to understand they have to work for the best interest of the company, putting behind their personal interests. These codes will help the employees work according to the basic ethics program which gives importance to complying with all the laws and safeguarding the basic rights of the customers. Implementation of the Codes Educating the staff regarding the stringent government laws regarding ethics was the first main challenge. BestBuy conducted group meetings on which interesting presentation slides on the same were shown to the employees. A small test to confirm the matter had reached the employees was conducted at the end of the presentation. Similarly, regular briefings sessions on the company code of ethics have are conducted regularly. Ghost calls from company appointed customers will be targeted towards the employees where their ethical values will be put to test. If they fail to pass it according to company parameters, they will be subjected to a brief training on the core values again. 3. Impact of Federal Sentencing Guidelines on Bestbuy.com According to the Sarbanes-Oxley Act every corporate company should disclose its code of ethics to the government, set up an auditing committee to monitor the implementation of the codes and get a CEO/CFO certification from the government. Setting up such an auditor according to government norms will pay way for giving the person too much freedom. The new rule encourages direct reporting to the board of directors regarding any unethical practice followed in the company (Brown, 2010). The auditor or the auditing team in charge will be held responsible for any major fraud in the company. Hence, they are given the right to contact the board of director’s team directly. But the auditing teams cannot be given such rights practically as it will create unwanted issues and interfere in the schedule of the high level personnel. BestBuy.com schedules regular meetings with the audit teams during which they can voice their concerns to the high level officials. 4. Challenges in Implementing the Code of Ethics If the employees feel that they are forced to act against their will in the name of ethics, they might feel frustrated. For example, if a customer service executive is constantly called by a customer and asked to replace a product number of times, the employee knows for sure, the person is taking personal revenge on them. The ethics of the company puts the customers need prior to the employees. The employee facing the ethical dilemma can escalate the issue to their manager, who can tackle it with their experience. But, they will mark down the employee’s customer handling skills. Ethics cannot be defined as a certain set of rules as it has to change as per the situation. Hence, the company code asks every person to act according to their conscience rather than rely on rules. The overall satisfaction of the customers as well as the employees is taken into account while measuring the ethics not the individual scores. Another major challenge is avoiding bad influence from certain groups. If any employee is found tampering with secure data for their personal reason or by mistake, others are encouraged to report the same immediately to the auditing team with or without revealing their name. The auditing team is given the right to tackle the situation as they deem right. 5. Reliability of the Code of Conduct The ethical codes of BestBuy.com are very economical as it uses only the available resources in the company. Simple technology like the projector, presentations, surveys and complaint reporting forms are used. Though no major technology is used a clear database regarding the code of ethics, training, testing, implementation and reports are maintained. This will help in evaluating the company culture on the whole as it provides a pictorial representation of number of unethical acts, the actions taken to tackle them etc. Such code of conducts will be very much reliable in the modern day offices as the many employees feel secure to work in an environment where everything is transparent. The company management gets a chance to evaluate them and improve the work culture if they see constant unethical practices. References 1. (2006). Rakuten Group Code of Ethics. Retrieved February 16th, 2013 from Rakuetn website http://global.rakuten.com/corp/sustainability/management/governance/governance01.html 2. Brown, M. (2010). United States Sentencing Commission Proposes Changes to Guidelines that Impact Corporate Ethics and Compliance. Retrieved February 16th, 2013 from Mayer Brown website http://www.mayerbrown.com/publications/United-States-Sentencing-Commission-Proposes-Changes-to-Guidelines-that-Impact-Corporate-Ethics-and-Compliance-02-05-2010/ 3. (2011). Corporate Governance. Retrieved February 16th, 2013 from Amazon website http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-govConduct Read More