Code of Ethics of a Large Multinational Clothing Retailer - Essay Example

The special code of ethics should include additional rules and regulations without driving out the power or significance of the general code of ethics in areas where there is no contradiction between the two. Formulation of the special code of ethics would demonstrate the sensitivity of the corporation to the local traditions. The companywide code of conduct should be supplemented by the internal business units of the corporation. Formulation of the special code of ethics should be a teamwork effort by the different functional areas of the corporation. “Enlisting the support of these local functions is important in shaping acceptable policies and dispelling notions that people at the home office dictate standards of behavior without respecting cultural differences” (LRN, 2007, p. 2). Top management assumes great responsibility for developing an ethically responsible culture in multinational corporations. They should frequently conduct meetings to identify any lapses and temptations of unethical business conduct by the employees (Godiwalla, 2012). Multinational corporations should have an efficient communication and reporting system in place to timely identify and control ethical misconduct.