Question

vocabulary Review

Adhering  ethical standards or right conduct standards.

Answer 1

Answer: Ethical standards are a set of principles established by the founders of the organization to communicate its underlying moral values.Principles that when followed,promote values such as trust,good behavior,fairness and/ or kindness.This  code provides a framework that can be used as a reference for decision making process

Ethical  standards are an important part of an organizations culture.They establish the parameters of behavior that owners and top executives expect from the employees and also from suppliers,at least to the extent of their relationships with the organization.A corporate governance system will put a lot of effort into communicating and enforcing these principles.This is mostly done through behavior modeling,which means that top executives should set the example of how lower level employees should act.

A few examples of these standards would be responsibility, honesty, transparency or fairness and even though they might be interpreted differently by each person,companies usually describe the founders perspective of each value to avoid confusions.

These principles should serve also as guidelines for decisions making processes to help employees align their personal criteria with the company’s perspectives as different ethical issues arise with normal business activities.This moral compass is crucial to maintain unethical behaviors down to a minimum,mostly in managerial positions.