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In: Finance

Codes of Conduct are developed to permit organisations to function ethically and efficiently. They need to...

Codes of Conduct are developed to permit organisations to function ethically and efficiently. They need to be communicated effectively to all members of the organisation if they are to be successfully implemented and, hopefully, result in better outcomes. Provide a detailed description of why and how you would develop a Code of Conduct for a parastatal organisation and explain and which stakeholders you would include in the development of the code and why

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Expert Solution

Code of conduct is understood as documented collection of the rules/principles/values that an organization considers significant and believes are fundamental to their successful operation. Code of conduct acts as a foundation of the company which totals the standards and values that make an organization remarkable and make it portray itself to the world and stand out from different organizations. The Code of Conduct is called backbone of a company which helps an organization to paint a picture of how employees can expect to be treated as an outcome. It also serves as an outline for ethical decision making within an organization which often acts as a communication tool which informs the internal and external stakeholders about what is valued by the organization. So preparing the code of conduct is a task of upmost importance and to be prepared by thinking it through. Primarily the understanding of the contest is important so that the core ethical values can be articulated properly. It is of the essence to try and find out that what bothers people in an organization and then a structural approach to be used which best fits the stakeholders. Finally, prior launching the Codes of Conduct, a draft of code is to be prepared which should be tested many times to get the Codes of Conduct hassle/error free.

A parastatal organisation develops Code of Conduct to broadcast principles and ethics that will make them attractive to customers, employees, and other stakeholders. It also helps to ensure that employees and clients understand and trust the mission of service.


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