Question

In 175 words tell what are some of the pros and cons to the Ethics Code?

Answer 1

A code of ethics is basically the values and culture of the company and its management which are made to motivate their employees to take ethical decisions in the workplace. It outlines the integrity of the business by embracing common, core values.

But as every coin has two sides, similarly Ethical code has its own pros and cons. Below are the pros and cons of the Ethics code:

Pros

1. It helps in building trust between various stakeholders and helps in establishing positive environment at workplace among employees

2. It helps in creating goodwill in the market and eventually effects growth of the company.

3. Core values and beliefs of the company are crystal clear for employees and they know exactly how ethical is their company.

4. Written ethical code motivates employees to practice legal work and avoid any illegal activity.

5. It helps in building solid relationships with customers, suppliers, investors and the communities in which company operates.

Cons

1. There is no value in code of ethics if that is not followed by employees. Management needs to make sure that employees are well educated about the code of ethics and are motivated to follow it.

2. Managers can abuse the code by accusing employees of failing to live up to it during performance reviews, even if the employees have followed it properly and employees can abuse it as well.

3. If ethics code only includes local ethical values of company's home country then it could be a set back for a company while conducting global projects.