Company's Ethical Code Essay

Length: 8 pages Sources: 3 Subject: Business Type: Essay Paper: #90455400 Related Topics: Companies, Independent Contractors, Core Values, Code Of Ethics
Excerpt from Essay :

Code of Ethics

Introduction and Company Background

Guiding Principles

Purpose of the Code

Core Values

Training and Education

Covered Employees

Implementation and Communication

Enforcement and Reporting

Mission Statement

Code of Ethics: The XYZ Company

Introduction and Company Background

Having a code of ethics is a big part of doing business. It is not something every company has, but those that do have these codes provide them because they want to be ethical and strong. Ethical codes help make requirements clear for every employee, and can avoid discrepancies in conduct (Clark, 2012). Avoiding or lessening the possibility for misunderstandings and discrepancies is an excellent way to protect both the company's bottom line and its reputation. Employees who fail to act in an ethical manner can cause serious harm to the companies for which they work (Clark, 2012). Keeping that in mind, one must ensure that an ethical code is direct and clear, so employees cannot question it or get around issues that are ambiguous (Clark, 2012). There should not be any guesswork within the code, and it must follow applicable laws and industry regulations in order to be acceptable. The company will then have recourse against employees who violate the code.

In 1943, the XYZ Doodad Company was founded by Michael Tyler-Harris. When he retired, his daughter Amanda took over the operations. The company has been kept in the family, and remains that way today. It is currently a global business that operates on a multi-million dollar level, and because of its expansion and value, its code of ethics must be strong and clear. In the past, there have been some difficulties with ethical issues based on choices made by employees. While these employees no longer work for the company, its image has still been tarnished by their antics. Transparency is an important part of the company's ethics, and it is vital that the company remains open and honest with employees, clients, and vendors. This transparency helps to show that the company is dedicated to doing the right thing, but there is also a certain level of risk in it. As long as employees know exactly what the company expects, there will be fewer problems.

Guiding Principles

When it comes to addressing the guiding principles behind creating a code of ethics for the company, one must look to the founder, who vowed that the company would be built on honesty and integrity. He also wanted to keep things simple. Keeping customers for a long time was his goal, and it is very hard to keep customers coming back if they feel that a company is not treating them ethically. When a company grows and develops in the proper way, it remains strong and can avoid many of the hardships that would otherwise be seen. It was not possible for the original founder to prepare for the globalization and technology that are seen today and used by his company, but he did have a clear vision of how people should be treated. There is no reason that has to change simply because his company is now able to reach a much larger number of customers and potential customers throughout the world. A code of ethics is a great way to honor the founding principles upon which the company was based, and the actual founder who created that company (Hartley, Grayston, & Ryle, 2010).

Purpose of the Code

The code's purpose is to provide the ethical beliefs and requirements of the company. There are many different ideas when it comes to ethics, and that is true of both people and companies (Hartley, Grayston, & Ryle, 2010). With that in mind, any company that is focused on protecting its employees and its customers should have a code of ethics that is written...


The main purpose of a written code is clarity, because verbal rules are not as easily enforceable and can be confused (Clark, 2012). Each employee needs his or her own copy of the ethical code, as well, so they have it to refer to any time. If there is no purpose to the code of ethics it will not make sense, because it would not provide proper information for clearly understanding the actual code. Rules are arbitrary if there is no clarity as to why the rule is in place, and when employees feel that rules are arbitrary they are less likely to consider following them.

Core Values

Integrity and honesty are the main core values carried by the XYZ Doodad Company. These principles guide the entire operation, and it has been that way since the company was founded. When the founder first started the company, he knew that being honest and having integrity would carry him and the company a very long way -- but those virtues and values had to be maintained throughout the entire time the company was in existence. One of the ways that could be done was through the creation of a code of ethics, which would endure the changes that would take place in the company and in society over time. The company is actually offering a great deal to its customers. Consider their core values:

Honesty: Being honest is very important for a company that wants to be successful. Employees are not interested in working with a company they feel is going to lie to them (Clark, 2012). Additionally, customers want honest companies to make purchases from. To protect itself and the people it does business with, XYZ Doodad Company will require honesty of all employees in its code of ethics when dealing with vendors, other employees, customers, and potential customers.

Integrity: People can trust companies that have integrity (Clark, 2012). All employees of the company are expected to act with high levels of integrity. That will keep customers and vendors interested in doing business with the company. When an employee tells a customer or vendor something, that customer or vendor will know they can trust the information that has been provided to them by that employee.

Training and Education

In order to make sure all employees follow the code of ethics that a company has created, it is important to make sure they are educated and trained in the right way (Davidson & Stevens, 2013). It is not a fair or realistic way of handling things when a company expects employees to follow rules and regulations they have not been trained to handle or even understand. While some ethical issues are very simple, others are more complex and require training for the employee. At XYZ Doodad Company, both education and training are considered to be highly important. Every person hired is carefully vetted, and the company wants to know new employees are going to be trainable and ready to learn. There is a comprehensive program for training at all company levels, so each person starts his or her experience with the company with the tools needed to succeed.


There are definitions that are important to the scope of a code of ethics, including:

Employees: These are people hired to work for the company in any capacity and who receive a W-2 for their wages. It does not include independent contractors (1099 workers), or volunteers.

Ethics: This is the moral code required of all employees. They have to abide by it while they are on the clock in any and all interactions they have with others.

Customers: These are people or companies who do business with the company through purchase of its products. Former and potential customers are also included in this definition.

Vendors: These are companies and people that sell services or supplies to the company.

Covered Employees

To be considered a covered employee, a person must receive a W-2 for tax purposes and be paid on a set schedule in an active employment relationship. To this end, all official employees of the company are covered employees. Any person working with the company in any capacity should ask questions if he or she is not sure of his or her responsibilities or role when it comes to the code of ethics.

Implementation and Communication

There will be two ways in which the code of ethics will be implemented. First, there will be a copy of it available in any open areas of the company that the employees share, such as the break room. This will ensure that all employees have access to it at any reasonable time. The Human Resources Office will also have an available copy of it, and the employees can refer to it there and/or talk to HR about any concerns they have with the code. A computer file and a hard copy of the code of ethics will be provided to each and every employee on his or her first day with the company. The employee will be required to read the code of ethics and sign the signature sheet, which will have to be returned…

Sources Used in Documents:


Clark, C.M. (2012). Individual moralities and institutional ethics: Implications for the Canadian Code of Ethics for Psychologists. Psychotherapy and Politics International, 10(3): 187-204.

Davidson, B.I. & Stevens, D.E. (2013). Can a code of ethics improve manager behavior and investor confidence? An experimental study. The Accounting Review, 88(1): 51-74.

Hartley, R., Grayston, R., & Ryle, A. (2010). Developing a modern code of ethics for engineering practice. The 5th Civil Engineering Conference in the Asian Region and Australasian Structural Engineering Conference 2010. Sydney, N.S.W.: Engineers Australia, 2010: 1276-1281.

Cite this Document:

"Company's Ethical Code" (2014, April 12) Retrieved May 28, 2022, from

"Company's Ethical Code" 12 April 2014. Web.28 May. 2022. <>

"Company's Ethical Code", 12 April 2014, Accessed.28 May. 2022,

Related Documents
Ethical Code of Conduct Every Company Needs
Words: 692 Length: 3 Pages Topic: Careers Paper #: 42459295

Ethical Code of Conduct Every company needs to understand the importance of having an ethical code of conduct in place. For an organization working in import and export, the same stays true and will in fact need to be further enhanced since the organization will be frequently dealing with people in other countries and hence needs to be even more ethical in its practices. Ethical code of conduct needs to follow

Company X Code of Ethics
Words: 2430 Length: 8 Pages Topic: Business - Ethics Paper #: 60239667

Company X has faith in its employees to utilize their own ethical judgment in conjunction with the rules and standards set forth by the company in order to assure that actions within the company are performed at an optimal level across the board. Implementation and Communication In order to assure that a code of ethics is implemented to the best of its ability into a company, gradual implementation must be used

Company, Address Ethical Code and Mission Statement
Words: 741 Length: 2 Pages Topic: Business Paper #: 80531184

Company, Address Ethical Code and Mission Mission Statement and Core Values: Coca-Cola For this paper, Coca-Cola was chosen. Finding the company's mission or values statement was actually easy. There was an "our company" link at the top of the main page, which connected to a page that listed information on the company. In the left-hand margin, there were several options, one being a link to the mission, vision, and values. It

The Ethical Code of Conduct
Words: 1236 Length: 3 Pages Topic: Transportation Paper #: 66376065

Ethical Business A Code of Ethics Importance Key areas of the company's code of conduct policies Explain the key steps that the company should take to ensure that employees follow the code of conduct Suggest three ways in which the restaurant can engage in socially responsive activities in the community within which it operates A Code of Ethics Importance A code of ethics is a necessary component for all companies that intend to do business in

Raytheon Company's Code of Ethics
Words: 2559 Length: 8 Pages Topic: Business Paper #: 88905270

Raytheon Corporation: Code of conduct and ethics Prelude: Raytheon Company is a well reputed technology and innovation company which deals in security, defense and civil marketson a global scale. It has a rich and bright history of 92 years and continuing, Raytheon can provide top of the line electronics, integration of mission systems as well as other capabilities indicated below: • Sensing capabilities • Effects • Command and control • Communications • Intelligence systems • A diverse

Ethical Behaviors of Mattel in the Toy
Words: 1836 Length: 5 Pages Topic: Business - Ethics Paper #: 74340233

Ethical Behaviors of Mattel in the Toy Industry The ethicacy of corporate behaviors are influenced by a myriad of factors yet most strongly reflect the internal culture, alignment of leadership to vision, and accumulated trade-offs made by management over years of ethical decisions, trade-offs and outcomes. In the study Mattel, Inc.: Global Manufacturing Principles (GMP) - A life-cycle analysis of a company-based code of conduct in the toy industry (Sethi, Veral,