Question

Describe the role that a code of conduct plays in ensuring ethical compliance within a firm. How should a code of conduct be developed, what should it contain, and what are the keys to ensuring that the code is successfully implemented?

Answer 1

A code of conduct is a formal document which has values acts as a guideline for both intental and external statement of corporate commitment and values. A code or conduct which is well-written is established and plays a role by clarifying the organisation's mission, principles and values which links to the standards and the expectations of the professional conduct. All the values that a firm wishes to achieve and provide in leaders, employees , managers , everything is described in the code of conduct. Written code of conducts thus becomes benchmarks and standards against which the individual's behaviour in the organisation could be checked and measured

It also helps in the decision making by providing a central guide and reference for the working of the organisation. It helps in encouraging the ethics and compliance, discussions , the motivation and the empowerment provided to the employees to handle any ethical dilemma if occurs.

It is usually developed by any senior leading tem, or cross sectional employees of various functions and departments working. All the commonly shared values and ethics of all departments are grouped together to form a unified code of conduct for the organisation.

The implementation for the same could take place by creating policies, communication the importance of the code of comduct, training the employees regarding the senstivity of the issues and developing moral and ethical traits in the employee to understand how essential it is for the organisation and the individual to follow the same code of conduct.