Evaluation of a Business Code of Exxon Mobil - Coursework Example

Evaluation of a Business Introduction If one takes a close look at the modern business world, one can not help noticing that every operation that is carried out in it is largely affected by Ethics. Indeed, the majority of companies, ranging from small to multinational ones, acknowledge the necessity to adhere to ethical guidelines in the course of performance. This paper will analyze Code of Ethics and Business Conduct that was created by Exxon Mobil as well as examine ethical system of this company and the way Code of Ethics is used by the staff. General information Exxon Mobil is a company that is in every top list when it comes to evaluating oil and gas industry. It is superb judging by revenue, market capitalization or daily production of oil. The mission statement that is claimed by it focuses on two important aspects of its performance: becoming the premier petroleum company and maintaining high ethical standards while doing so. In other words, while operating all over the world with the substances that are able to have a profound negative impact on environment, the company in question does its best to minimize any risk that is associated with petroleum production. Ethical system of Exxon Mobil If one carefully examines the Code of Ethics of this company, one will be able to make the following conclusion: the ethical system that is used by the firm may be characterized as duty-driven. Indeed, there are several reasons why this claim should be considered to be valid. To begin with, one might quote the following passage from Code of Ethics: “The policy of Exxon Mobil Corporation is to comply with all governmental laws, rules, and regulations applicable to its business” (“ExxonMobils Code of Ethics and Business Conduct’’, n.d.). As one can easily see, the company is guided by the legal framework as well as the duty to adhere to it. In addition to that, another part of Code of Ethics should be noted: “Local customs, traditions, and mores differ from place to place, and this must be recognized” (“ExxonMobils Code of Ethics and Business Conduct’’, n.d.). This means that the company in question also acknowledges the necessity to comply with cultural guidelines. Staff and Code of Ethics It must be noted that the document in question should not be regarded as a proclamation of unrealistic principles, but rather a tool that should be used on a daily basis by different people within the company. Speaking of employees, they are expected to follow Code of Ethics while performing their professional duties or communicating with customers or partners. In spite of the fact that the above mentioned document does not contain detailed provisions, it surely holds some general principles that can be interpreted and applied to a wide range of situations, making the Code quite useful. As for the way Code of Ethics is used by management, one should point out that it is responsible for creating an ethical standard of quality that the managers are required to use while assessing the performance. In other words, this document might be regarded as a frame of reference when it comes to evaluating different aspects of business activities such as environmental impact, quality of service and so on. Finally, Code of Ethics holds particular significance for the board of directors, since the latter are largely responsible for strategic development of the company and strategy should reflect the basis ethical values that are shared by all the members of the staff. Thus, the document in question urges executive officers to maintain the highest ethical standard of production, making sure that every new change that is being introduced does not do any harm to the environment or the consumers. Usage of Code of Ethics It is quite obvious that the use of Code of Ethics differs according to the circumstances. For example, there might be general circumstances that involve compliance with certain ethical guidelines, especially when new policies are being designed. In this case, the company is expected to continue the course of action that is advocated before. Speaking of special circumstances, for example accidents, Code of Ethics is used as a beacon to guide the company through the crisis and show it the best way to cope with it. As has already been noted, Code of Ethics does not contain an answer to every particular situation, rather it provides people with general guidelines that was be interpreted and used. In other words, this document should be regarded as a set of guidelines that application of which is adjusted by each particular situation. This means that Code of Ethics will be the primary source that provides principles which guide a company in every situation that it faces in the course of development and performance of business operations. The time when Code of Ethics will be most likely to be used includes circumstances when a situation offers the company many different options, but the correct one can not be easily located between them. In other words, whenever there is a controversial as well as debatable situation, the company is expected to consult Code of Ethics for guidance. Nevertheless, this particular document should not be consulted only in the times of crisis or difficulties: the staff of company is encouraged to use it on a daily basis, including circumstances when there is no threat to ethical integrity of a company. Possible changes to Code of Ethics It must be noted that the world is changing and every company, including Exxon Mobile is advised to adapt to these changes in case it wants to maintain its competitive advantage. Thus, at the present moment a considerable part of communication between people, including business world interaction, is carried out in the Internet. This means that Code of Ethics should also include provisions about the image of the company in the virtual environment since online representation as well as ability to address with different issues with the help of social networks is currently recognized as an essential part of successful image. If I were Chief Executive Officer of Exxon Mobil, I would probably modify the existing Code of Ethics in the following way: I would widen the scope of compliance with ethical guidelines not only in the course of performing business operations, but also include communication with partners and consumers in the virtual environment as well. As a result, Code of Ethical will receive a new aspect of application, namely the virtual one. Speaking of the best way to implement the changes that were mentioned above, I would have to point out that it will be carried out through promotion of awareness of the significance of virtual representation of a company and importance of online image in the contemporary business environment. Thus, I would encourage the staff to attend several specialized seminars that would provide the employees and the managers with facts and knowledge that is necessary to understand the situation from a broad point of view and make a conscious decision to implement a change. It is quite obvious that the possible reactions from employees and managers should be viewed as a valid way to assess the success of the changes. Thus, if they strongly oppose to the adjustments, the company should listen to the claims that they make and take them into consideration, gradually adjusting the changes. In addition to that, the reactions may also serve as indicators of effectiveness, allowing the board of directors to see which of the initiatives works as it is supposed to and which appear to be less productive. So, the possible reactions, whether it is criticism or approval will be a beneficiation contribution to the experience of the company. Code of Ethics and organizational culture It is beyond any doubt that Code of Ethics should be regarded as an important tool that enhances performance of a company; nevertheless, the degree of its effectiveness is largely determined by the kind of culture that is being promoted in an organization. Speaking of Exxon Mobile, one might point that the employees appreciate the initiatives that are carried out by the board of directors and make a sincere effort to comply with newly introduced principles. That is why the effect that Code of Ethics has on the organization may be characterized in several ways. First of all, it shapes a considerable number of processes that are currently carried out within the organization. Secondly, it provides guidelines for the future developments. Finally, it allows every people who work in a company to choose an appropriate course of action in difficult situations. Conclusion Having examined all the evidence, one is able to come to the following conclusion: Code of Ethics that is adopted by Exxon Mobile is an important document that should be named among most essential elements of the company since it has impact not only on the contemporary state of affairs, but also on the future actions that are carried out by it. The ethical system that is being promoted is duty driven, relying on both legal as well as moral norms. References ExxonMobils Code of Ethics and Business Conduct. (n.d.). Retrieved January 14, 2015, from http://corporate.exxonmobil.com/en/investors/corporate-governance/code-of-ethics-and-business-conduct/our-code Read More