Developing an Ethics Statement

Organizational Ethics

General overview of organizational ethics policies

Rationale for the design of code of ethics

The written code of ethics

Discussion and comparison

General overview of organizational ethics policies

The standards which help business to operate are often described as organizational ethics. The ethics and the policies of ethical conduct in business are usually demonstrated through acts that exude fairness, integrity, honor, compassion and responsibility. The policies on organizational ethics are formed keeping in mind the vision and objectives of the company as well as pressure from the external forces (Snoeyenbos, Almeder, & Humber, 2001).

Policies of organizational ethics are often related to uniform and fair treatment of the employees of the company. This means that the organization needs to set a certain standard for equal treatment of all employees that demand the same respect for each regardless of the race or religion or cultures or lifestyles of the individuals. The chances for betterment at work should be presented equally to each and all. Often these are policies that are written down and well communicated within the organization. Organizations often include training programs to promote ethical treatment of employees in their ethics policies (Cooper, 2001).

Organizations also require to be ethical towards the society and almost every organization has a well-developed strategy and code of ethics that seeks to fulfill its commitment and responsibility towards the society where it works. These can include giving back to the society all or part of the resources utilized such as clean water or planting of trees to compensate for the use of wood. Other ethical policies of business organizations include engaging in programs for the betterment of the immediate community.

Most organizations also have a code of ethics and policies for it suppliers. Such organizations draw up policies and code of ethics that its suppliers and distributors in the supply chain needs to follow. Often these codes of conduct are in line with the established code of ethics of the organization itself or conform to certain standards applicable in the business segment. Such policies can include issues like ethical sourcing of raw materials, maintenance of corporate social responsibility and equal and fair treatment of employees and workers (Snoeyenbos, Almeder, & Humber, 2001).

In modern business, organizations also draw up policies and strategies for maintaining a certain level of ethics in maintaining financial transactions and records. These code of ethics or standards of ethics are related to the manner in which companies show their expenditure and income such that they are understandable by people who are interested in the company. The aim of these ethical conducts is to ensure that companies do not conceal important financial facts from the common people -- especially the investors and suppliers.

Rationale for the design of code of ethics

The rationale for designing a code of ethics is to deliver assurance among the investors and the other stakeholders of the organization about the commitment of the organization for upholding of fair treatment for employees, investors and the society and adhering to the ethical rules of conduct in relation to authorities. Furthermore, creation of a code of ethics helps employees to gain confidence in an organization developed through the creation of transparent means of functioning. Similar confidence is developed among other stakeholders such as the investors and suppliers. Having a code of conduct such as ethical sourcing of products has also assumed importance with resp3ct to modern customers who often look to purchase products that are environmentally friendly and ethically sourced. For example, many customers are tilted towards making purchases of food products that were organically grown (Barth, 2003).

Hence, development of a code of conduct is to ensure that all important stakeholders of an organization are treated fairly and are able to gain confidence in the fair functioning of the organization. Ultimately these codes of ethics help in business development while enhancing the public image of the company.

The written code of ethics

Code of ethics

Obligations to Customers -- customers would be provided with products that are of the best quality and those that have been ethically sourced in conformation with the established standards for safety. The company also ensures that all the advertising is honest and any confidential information collected is not shared.

Obligations to Employees -- employees would be given a free and fair treatment at work with equal opportunities for promotion and personal development irrespective of the race, religion and ethnicity. The company would follow a code of ethics that would help in the creation of positive work environment free of all harassment and violence which cal include sexual harassment, offensive comments, and racial jokes.

Obligations for suppliers -- the suppliers need to follow an ethical code of conduct for its employees as stipulated by the company and refrain from using child labor at any time. The materials for production need to be ethically sourced and responsibility and transparency in transactions needs to be maintained (McKinney & Moore, 2007).

Corporate Governance -- the organization would function ethically as set in the written format. The owners and promoters would encourage healthy competition and would not indulge in corrupt practices. The company would also maintain transparency in financial dealings and records and presentation of the financial records of the company to the stakeholders when necessary. Research, marketing, and quality service would be the basis to gain competitive advantages and refrain from using unfair or illegal trade. There would be regular monitoring by an independent authority for communicating the same to the stakeholders.

Obligation to society -- the company would undertake every possible measure to deliver on the responsibilities expected from it towards the society. The company assures to set aside a part of the profits for developmental work in the society and conduct regular interactions with the members of the society to better deliver on the responsibilities (Zimmerli, Richter, & Holzinger, 2007).

Discussion and comparison