Unilever's Code of Ethics vs Codes of Other Companies - Essay Example

Organizational of Ethics al Affiliation) Introduction of ethics can be defined as a guide to employees and other stakeholders in the daily decision making process. It points out the core values of the organization. The code of ethics should serve two main purposes. The first is to clarify on the issues that are considered ambiguous and open to question within the organization. The second aim is to develop a culture of trust and commitment from those the organization is involved. A code of ethics ensures that everyone in the company is in accord from the top-level management to the lowest level of employees. It will also protect the company from legal liability that can arise from the actions of the employees (Arnold, 2013). CODE OF ETHICS 1) Professionalism The organization expects all employees to maintain high standards of professionalism in and outside of the workplace. This is expected of them as long as they continue to be employees of this organization. Professionalism shall be implemented in the following manner: a) Employees should maintain respect for their fellow workmates. Invasion of privacy is considered a violation of respect to fellow workmates and shall not be allowed within the organization. b) The organization considers all workers equal regardless of gender, race or political affiliation. The organization provides employment based on the principle of equal opportunity and any promotions and appraisal shall be based purely on performance and merit. c) Employees are expected to handle customers with respect and follow up with them to ensure customer satisfaction. d) All complaints for any stakeholder the organization should be reported to the relevant authority and follow up measures should be undertaken in order to ensure that the matter was satisfactorily handled. e) Any criticism and complaints regarding fellow employees should be directed to the individual’s supervisor or to the Human Resources Department. These criticisms shall not be channeled directly to the concerned party or shall not be discussed in public. This is to avoid conflicts and confrontation within the organization. f) Employees are expected to maintain the highest levels of honesty when carrying out their duties. This involves all aspects including academic qualifications, marital status, health conditions, and performance ability. Any misrepresentation of academic qualifications, marital status and other material information shall be deemed as a gross violation of professionalism in the organization. g) Any assignments given to employees is expected to be handled in a professional manner and to the standards prescribed by the client or to the satisfaction of the supervisor concerned. h) Any sexual behaviors, indecent relationships, romantic relationships and other forms of association considered detrimental to the organization shall not be allowed among the employees of the organization. i) There will be not tolerance for romantic relationships and sexual activity between employees and clients of the organization. This includes both current and former clients of the organization. j) Employees are expected to comply with laws and regulations that relate to our business. Any violation of these laws shall result in disciplinary action and/or loss of employment. 2) Confidentiality The principle of confidentiality encompasses two main aspects. The first aspect is to keep the information confidential. The second involves taking all steps and measures in ensuring that the information remains confidential. This principle is dependent on the nature of the information received. The organization is fully committed towards the maintenance of the highest levels of honesty and discretion when dealing with our current and past clients, potential clients and other stakeholders. The same standard applies to our suppliers, financiers and other associates. Confidentiality involves the protection information received be it personal in nature or otherwise. Any information acquired during normal professional business transactions shall not be disclosed to any third parties. Disclosure of such information will be done if there is a legal duty on the part of the firm to do so. 3) Professional Competence and due care. It encompasses the following: a) The duty of the employees is to maintain professional skills and knowledge required in order to ensure service delivery of the highest levels to the clients. b) The employees are expected to act in accordance with the applicable professional standards and technical standards in the fulfillment of daily duties. c) The maintenance of adequate professional competence requires continuous awareness on the part of the employee in the business development area. Professional development will enable one to maintain the capabilities required in order to perform aptly within the organization. 4) Financial ethics a) The Chief Financial officer and the C.E.O will be responsible for the preparation and timely delivery of all financial statement and reports in the organization. b) The financial reports and statements shall be prepared in line with the generally accepted rules and standards as stated in IAS 1. c) The company shall engage the services of auditors from a reputable company to ensure that the statements give a true and fair representation of affairs within the organization. d) Any form of financial irregularity noted by any employee will be brought to the attention of the company through the senior financial officer in the concerned department. The reports shall be anonymous in nature in order to prevent the victimization of the potential whistleblowers. e) Employees will not receive any money or gifts in kind that will inhibit their independence in the execution of their duties. Any amount that is received from a client after the completion of a project must be declared to the company in order to facilitate an analysis of the situation. If the gift is deemed to be of negligible value and will not affect the independence of the worker then it will be allowed. f) Any form of bribery and bribery acceptance shall not be tolerated within the organization. Anyone found guilty of this violation will be legible for termination of employment and legal action by the company. Rationale for Design I design the code of ethics as relates to professionalism because it helps individuals in the organization to be aware of the objectives that are intended to be achieved. The clause of the principle that relates to sexual behavior and relationships within the organization is meant to protect the organization from legal liability that may arise from sexual assault cases (Arnold, 2013). Sexual violence is defined as all sort sexual activity that happens without the consent of the victim. This includes rape, harassment and all other forms of the vice. In most cases sexual violence at the work place results in very high cost to the organization. This includes lower productivity of the employees involved, lower employee morale and increased incidents of absenteeism. The most significant of these costs is the legal fees and compensation that have to be paid out to different parties in case of legal action. There is also reputational damage that can occur to the organization because of the vice occurring. Therefore, it is important to have this clause in the code of ethics in order to prevent this. The clause that relates to equal opportunities and equality in the workplace has been placed in there to prevent legal action from employees that come from the minority groups in the nation. It will also portray the organization in good light as one that does not condone discriminatory practices. The clause of professionalism relating to professional standards and customer satisfaction ensure that the organization retains its customers and has the ability of attracting new ones. This is because the clauses ensure customer wellbeing is placed at the forefront of the organization (Hartman, 2009). Any complaints that are obtained from customers are handled promptly and form a basis of self-evaluation in the organization in order to improve service delivery of the company. The clause that relates to maintenance of a professional level of technical proficiency ensures that the employees keep abreast of the latest developments in the industry. This will ensure that the organization has a workforce that has the necessary skills to stay competitive I the market (Neve, 2008). The confidentiality clause ensures that the organization keeps the information obtained away from third parties. This information can be used for financial gain through extortion. Competitors can also use it in order to gain competitive advantage over the organization. The confidentiality clause also ensures that the employees once leaving the organization cannot use the information acquired when working at our firm in their new workplaces. The confidentiality clause serves as an encouragement to all customers and parties involved that the information received will be held in good faith and therefore do not have to worry about personal details being leaked into the public (Bowie, 2011). The code of ethics developed above relate significantly to my own beliefs as an individual. My morals prohibit me from doing some of the actions that have been stated in the document and I can therefore easily relate to it and adhere to the rules. Comparison with those of other companies. The Unilever group of companies policy is well written and detailed. As relates to integrity the company states in its policy that integrity has always been at the center of its corporate responsibility policy. They there for ensure that they conduct their businesses with the highest levels of integrity in order to impact the communities around them positively. Our policy states that integrity is key in the performance of the company especially as relates to financial responsibility. The policy states that any sort of financial dishonesty such as the acceptance of a bribe shall be dealt with swiftly and severely. The two policies of the different companies are similar in the sense that they both ensure that there is no liability or loss that will occur due to dishonest business practices. As relates to conflict of interest the Unilever group state that all the employees are urged to avoid personal activities and financial undertakings that will place them in compromising situations. It also states that the employees of the company must not misuse their positions for personal gain. This policy is similar to our clause that relates to the acceptance of gifts from clients. In some cases due to the size and the value of some gifts, they may be viewed as bribes and will therefore affect the independence of the employees. Therefore, these two policies conveys the same message to the individuals involved with my policy being more specific in nature as to the procedures that will be used in the determination of whether the gift affects independence or not. As relates compliance and reporting of financial statements and standards the Unilever group states that The Chief Executive Officer is the one who is responsible for the implementation of the financial policy of the company. This is similar to our policy that states the C.E.O is the one who is responsible for the overall execution of the financial policies of the company.The Unilever policy also states that the financial statement shall be prepared in accordance with the generally accepted standards. It also states that the statements must be presented before a committee that ensures there is compliance in this particular undertaking. They give an assurance of compliance to the set standards. In our case, it is the auditors that ensure the standards that are in place have been followed. This is because they are third parties and can therefore analyze and act independently without compromising the integrity of the whole process. In the Unilever case, any complaints that the employees may have are forwarded to the Chief Legal Officer. He will follow up with the relevant parties involved. The Board of Governors expects employees to report any crimes of omission in procedures or commission. In our case, the reporting of any financial discrepancies is done in a manner that ensures the person reporting remains anonymous. This is to encourage more people to come forward and do so. There are also stiff penalties for those who will be found participating in financial irregularities. It is therefore ore safe to say that my policy is not far from those that are employed by reputable companies around the world such as Unilever Company. Bibliographies Arnold, D. G. (2013). Ethical theory and business (9th ed.). Boston: Pearson Education. Audi, R. (2009). Business ethics and ethical business. New York: Oxford University Press. Boatright, J. R. (2008). Ethics in finance (2nd ed.). Malden, MA: Blackwell Pub.. Bowie, N. E., & Schneider, M. (2011). Business ethics for dummies. Hoboken, NJ: Wiley. Hartman, L. P., & Werhane, P. H. (2009). The global corporation: sustainable, effective and ethical practices : a case book. New York: Routledge. Mellahi, K., Morrell, K., & Wood, G. E. (2010). The ethical business: challenges and controversies (2nd ed.). Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Neve, G. d. (2008). Hidden hands in the market ethnographies of fair trade, ethical consumption and corporate social responsibility. Bingley: Emerald JAI. Paliwal, M. (2006). Business ethics. New Delhi: New Age International. Read More