Ethics code has a lot of items and new things keep adding up every other day but the basic format remains same.:
Values: It is expressed in terms of how the company performs its day-to-day interactions with suppliers, employees and customers and respect their interest, regardless of the circumstances.
Principles: Principles support values by including credentials, employees should follow. Customer satisfaction, business profitability and continuous improvement are key factors in documenting business principles.
Personal Responsibility: This indicates an employee’s personal responsibility to uphold the code of ethics. This may contain information regarding both the legal and moral consequences if an employee violates the code. The management should support the HR for upholding this code.
Compliance: Compliance to all financial reporting and any licensing or quality requirements such as ISO 9000 should be documented, along with the expectation that all licenses will be maintained and legal regulations met. This not only ensures adherence to policies but also documents changes made for future.
Benefits of having ethics code:
- Acts as a guide for employees in situations where the ethical course of action is not immediately obvious.
- It creates a climate of integrity and excellence.
- It outlines the rights and responsibilities of staff members.
- Build investor and public trust and enhance business reputations.
- Offer protection in preempting or defending against lawsuits.
- Enhance employee morale, loyalty and helps recruiting of outstanding employees.