What are Code of Ethics?

Code of ethics for all business can be very similar or very different depending on the business. These values and principles are vital to a business’s growth and development and should be precisely enforced for positive results. Values, principles, management support, personal responsibility, and compliance all of these things fall under the code of ethics in business. Code of ethics for employees at a company can be the set of rules that they must follow to justify the company’s beliefs and values. These rules consist of what the company believes in and enforces that company’s values, which should always be first priority and displayed in all areas of the business by the employees. These 6 components are vital to a business’s success and growth. They should carry through almost everything done by the business. These values are usually set by the company to push in what they believe their company stands for and they want this to trickle down all the way down to every employee. Business Values are mostly expressed to the public during operations by employees dealing with customers and on a day-to-day interaction with suppliers. Employees are expected to define what the company’s ethics are and make it clear that the company is based on fairness and honesty through this interaction. Customers are the most vital part of a business so it is important they understand the company’s ethics and what it based on. Business principles are very vital to further the business values and keep order. Principles are like embedded goals that are always a part of the mission to maintain healthy growth of the business. Customer satisfaction, healthy business growth and profit maximization these are things that are always a part of the mission of a business and hold the ethical values of the business in place. Management support is very important to the employees in order to successfully embrace the company’s ethical values and principles. It also helps maintain order as an open door policy to report violations of ethical values is placed. Personal responsibility is one of the most important component as for it is totally the employees personal choice to truly uphold the company’s code of ethics. As a company it is much more than just making sure of that. A company wants to ensure that every employee supports the code of ethics by reporting all violations to management. Compliance is a must, laws cannot be broken in any aspect of the company’s dealings. This may lead to the most damage that can be done to a company due to violations. Sometimes compliance is violated in the system, and as has happened in the past with Goldman Sachs Company and Enron, they were legally shutdown due to violations. these are prime examples of what may come if ethical issues are not dealt with the right way. Close moniterization of transactions and clearly defined codes should help keep a company and its employees from violating laws and helping them feel comfortable while embracing these values and principles.