Code of Ethics: Ethics

Code of Ethics

Company X believes in having a clear roadmap for conducting business in a proper and sustainable way. It is for this reason that we have in place a well-developed Code of Ethics -- a statement that seeks to ensure that our conduct of business is consistent with not only the industry best practices, but also all the laws of the land. Organization X is a hypothetical firm that concerns itself with the manufacture and sale of beverages and snacks. Organization X is a multinational business with operations in diverse parts of the world.

Statement of Values

Company X's key ethical values and principles include:

Integrity and Honesty

Company X believes in doing the right thing, at all times. The right thing doesn't not necessarily mean what is good for business, but that which has as positive impact on not only our key stakeholders but also the entire society. We believe that our reputation is firmly rooted in our ability to uphold honesty and integrity. In line with its commitments to these key principles, the Company complies with all the applicable laws in all the areas in which it conducts business.

a) Responsible Marketing and Advertising

The company engages in what is referred to as ethical marketing. Ethical marketing, in the words of Murphy, Laczniak, and Prothero (2013, p. 4), includes all those "practices that emphasize transparent, trustworthy, and responsible personal and/or organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders." The Company understands that millions of people consume its products on a daily basis. It is for this treason that its marketing efforts mirror its ethical standards, are truthful, and are in compliance with all the applicable laws. Already some companies have in the past been accused of misrepresenting information in their advertising efforts (Delener, 1995). Company X does not wish to become a case study. In that regard, therefore, the Company recommends that all its marketing efforts should never:

Make claims that cannot be substantiated

Use statements that are either untruthful or misleading

Misrepresent the attributes or quality of any of our products

Most importantly, the Company's marketing efforts should be in conformance with all the relevant regulations, guidelines, and laws.

b) Fair treatment of Customers

It should be noted that to us, integrity in the marketplace has got to do with the fair as well as ethical treatment of customers. In that regard, therefore, the Company recommends that during their interactions with customers, employees ought to:

Ensure that they deliver on all the pledges made to customers

See to it that various programs sanctioned by the Company are communicated in a proper way and format

Ensure that they do not engage in trade practices that could be constructed as being deceptive or unfair.

c) Interactions with suppliers

All our interactions with suppliers should be founded on honesty and true representation. On this front, the company is aware that an illegal or unethical act on the part of suppliers could hurt its hard earned reputation and bring about loss of goodwill. It is for this reason that we insist that, as a condition of doing business with Company X, all our suppliers comply with the Company's Code of Ethics. It is also important to note that suppliers should be selected on both reputation and merit.

d) Interaction with Competitors

The Company is a firm believer on fair competition. It is for this reason that the Company intends to continue adhering to all the competition and antitrust laws in place. We are committed to outperforming those we compete with within the confines of a free enterprise framework. All our employers must, therefore:

Respect the intellectual property of not only third parties but also our direct competitors.

Obtain competitive information in a legit and fair manner

2. Commitment to Quality

The Company is committed to ensuring that the quality of products it offers for sale is never compromised. To ensure that the trust customers have in our products is not eroded, the Company ensures that all its products are superior to those offered by the competition. This it does by, amongst other things, ensuring that all the products are developed in a responsible and ethical manner and seeing to it that its processes are in compliance with all the applicable guidelines and standards. It is for this reason that all those involved, in any way, in the development, packaging, or storage of any of our products ought to:

Ensure that they adhere to the applicable standards and guidelines

Comply with all the laws, rules, and regulations that relate to food safety.

3. Respect for Humanity and Promotion of Human Rights

According to Jennings (2008, p. 246), "today, every multinational corporation is challenged to promote human rights" The Company recognizes the relevance of not only promoting, but also maintaining human rights in its various engagements across the globe. For this reason, the Company is committed towards lending the much needed support to the various principles captured under two key regimes. These are the International Labor Organization's fundamental principles, and the United Nation's Universal Declaration of Human Rights. In that regard, therefore, we seek to ensure that all out policies and programs:

Contribute towards the creation of a workplace that is free from both harassment and discrimination

Bar any form of child labor, as well as forced labor

Provide working conditions that are both safe and humane

Promote employees' freedom of association

Provide wages that are not only fair but also equitable.

4. Appreciation of Diversity

The Company believes that all individuals are unique. Being a global organization, the Company engages employee from various cultural, ethnic, as well as nation backgrounds. It is for this reason that inclusion is encouraged. It is also important to note that people have diverse personal characteristics in relation to their marital statuses, sexual orientation, gender identity, work experiences, or even personality. We serve in diverse markets. It is for this reason that the Company brings on board a diverse workforce and takes deliberate measures to ensure that these individuals feel appreciated and respected.

Employees are expected to contribute towards the creation of a work environment that makes our business partners and employees feel respected, valued, and included. For this reason, the Company will, specifically, expect employees to:

Respect not only the diversity of each other's experiences, but also demonstrate reverence for the abilities and talents of others.

Respect other people's input

Contribute towards the creation of an environment of candor, openness, and trust.

It is important to note that the Company will only understand and appreciate the various needs of its customers if it actively fosters an environment of trust, respect, and confidence in each other.

Training, Communication, and Implementation

It is important to note that this Code applies to each and every employee of our firm -- regardless of their location. This includes all those engaged by our various subsidiaries. Company X's Compliance Unit is responsible for training and communication. The unit is also responsible for the promotion, monitoring, as well as enforcement of this Code of Ethics. It should, however, be noted that ultimately, all of us are responsible for the maintenance as well as actual implementation of this Code of Ethics.

1. Training of New Employees

All new employees of Company X must receive a copy of the Code of Ethics. In addition, they should receive three hours of training with respect to the same. During training, employees will go through the Code of Ethics and acknowledge they not only understand, but also appreciate its relevance and what it represents.

2. Refresher Training

All employees of Company X will receive a full hour of training on an annual basis.

3. Compliance Training

The Company appreciates the fact that general training on the relevance of the Code of Ethics will not be enough. For this reason, the Company has in place what it refers to as compliance training -- where employees from various departments receive the relevant training relative to their specific duties and job responsibilities. It is important to note that the Company will largely rely on the managers responsible for various units so as to establish the relevant training needs.

4. Delivery of Training

A number of approaches will be utilized in the delivery of training. These include, but they are not limited to, instructor-led sessions, online courses, and webcasts. The Company will make use of its learning management system to track all training.

5. Communication

In seeking to discuss as well as promote the firm's compliance and ethics program, the Company will make use of a number of communication methods (both externally and internally). With regard to external communications, the Company will utilize articles and press releases. On the other hand, internal communication methods will comprise of compliance alerts, webcasts and conference calls (periodic), newsletters, and an Intranet site.

6. User Guidance

It is important to note that the Code of Ethics training cannot possibly foresee all the situations that employees could come across in their day-to-day engagements. For this reason, employees are encouraged to seek guidance whenever the Code cannot provide the answers that they seek.

It is also important to note that employees are encouraged to report any violations to the Company's Code or policy that they witness. This is important so that all concerns can be addressed early enough.

Pursuant to this, employees have a number of channels to make use of as they seek to either make a report or seek guidance. These include, but they are not limited to:

The Compliance and Ethics Committee

Any issue that involves the deliberate violation of the Company's Code of Ethics should be reported to this committee. Issues that could be reported to the said committee are potential (or actual) conflicts of interest, workplace harassment or any kind of discrimination, illegal or corrupt business practices, and accounting misrepresentations and other irregularities.

Immediate managers

Managers could provide the relevant guidance and recommend appropriate remedies with regard to issues that have got to do with workplace policy violations, co-worker misunderstandings, processes, as well as policies that are job-specific.

The Role of Leadership

1. Enhancement of the Accuracy of Business Records

Leaders must see to it that all the records originating from them are both complete and accurate. Business records in this case include, but they are not limited to, agreements, contracts, and financial statements. Regardless of the type of document, the information presented therein ought to be accurate and present a truthful account. All the relevant components and transactions of a financial nature ought to be captured in financial records. For this reason leaders are not expected to:

Alter, misstate, or deliberately omit information deemed material

Encourage others to conceal or alter information that could negatively impact on the integrity of a business entity's financial records.

2. Protect Company Resources

Leaders must not commit fraud of any kind against the Company. This is particularly the case given that the Company relies on them to ensure that all organizational resources are put to efficient and honest use. It is important to note that those with spending authority must at all times see to it that:

Organizational funds are used for their intended purpose

Expenses are verified to ensure that they are not only well documented but also business related

All expenditures are accurately recorded

The relevant approvals are obtained prior to incurring expenses

Manufacturing numbers are not exploited to satisfy productivity objectives

3. Leaders and anticorruption

Leaders must ensure that none of the decisions they make is influenced by corruption. The Company prohibits any corrupt arrangements with government representatives, suppliers, or even customers. In that regard, therefore, the Company expects leaders to not only comply with the anticorruption laws in place but also appropriately handle reported instances of corrupt behavior.

The Company operates a global business. In that regard, it appreciates the fact that while some countries have in place robust and well-formulated anti-bribery and anticorruption policies, some jurisdictions could be particularly problematic. All those in leadership positions should never offer (either directly or indirectly) entertainment, gifts, or any valuable items to government officials or other third parties, in exchange for special favors such as:

For purposes of influencing the outcome of some business decisions

For purposes of obtaining or retaining business

4. Leadership and Conflict of Interest

All those in positions of responsibility ought to do all in their power to avert situations where their own personal interests could be put into conflict with the interests of the Company. This is particularly the case given that leaders have an obligation to ensure that they act in the best interests of the Company. Indeed, as Ferrell, Fraedrich, and Ferrell (2014, p. 314) point out, "strong ethical leaders are those passionate about the organization and act in the organization's best interests." For this reason, the Company expects leaders to lay bare all potential conflicts of interests.

Corporate Social Issues

1. Pollution

The Company respects all the environmental laws that ban or outlaw pollution of any kind. On this front, the Company ensures that its environmental responsibility exceeds or goes far beyond what is outlined in the relevant laws and regulations. Ours is an ethical business that ensures that the surrounding population is not affected by its operations.

2. Community Involvement

The Company is guided by two key components in its relations with communities. These include talent development and empowerment.

Talent Development: the Company develops the talent of the inhabitants of those jurisdictions in which it operates by creating employment opportunities and initiating openings for further training.

Empowerment: The Company regularly involves itself with programs that promote community education and poverty alleviation. This is particularly the case in third world countries.

Recent Laws and Regulations Impacting the Corporation

1. International Trade Controls

Company X is a global business. This means that the Company has operations in various parts of the world, and hence is actively involved in the transfer of various goods as well as technologies across both national and international borders. For this reason, the various transactions of the Company have to be in compliance with the relevant trade laws and controls that relate to imports and exports. These are inclusive of:

Legal economic sanctions, embargoes, as well as trade restrictions

Export controls imposed by the respective governments

Any anti-boycott laws in place