The Ethical Code of Conduct

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 an ethical manner in general, and a detailed code of ethics that targets various aspects of operations can actually be used as a competitive advantage that serves as the basis of managerial decisions based on the specific set of objectives the company wishes to accomplish. Such a code forms the common framework used as the foundation of all business decisions (Barth, 2003).

Apart from keeping a company away from any suspicions with regards to its compliance requirements, a code of ethics helps in the creation of a cohesive understanding of the boundaries of expectations from within the company, but also sets standards that are applicable in the manner in which employees deal with external stakeholders. A company's legal standing, as well as its reputation, can also be protected to some degree by a formal and a well-communicated code of ethics in the eventuality of a breach of ethics either by the company or by an individual employee ("Corporate ethics: the business code of conduct for ethical employees," 2003). For this analysis, a discussion of the details relevant to a specific code of ethics with provided, which will be illustrated by the Cheesecake Factory.

Key areas of the company's code of conduct policies

The Business Financial Interests ethical code that is applicable to both the employees and the directors of the company and directly impacts the manner in which the company does business on a daily basis. This code of conduct provision entails that no individual in the company should make personal financial gains through dealings on behalf of the company. The company also expects officers and directors to refrain from ay transactions that even gives the impression of a possible financial conflict of interest. Additionally, the company also expects that no relative of any employee of the company should have an interest in or any form of financial investments in a customer, supplier, contractor or a competitor of the company.

This provision helps the company to maintain a steady image among the stakeholders -- both internal and external, about its unbiased nature and its standards of ethical behavior in its business conduct in general. In the long run, such ethical conduct of business also helps promote a positive image of the company in the minds of the customers and potential customers. The employees are bound to disclose all their business interests to the supervisor to ascertain the extent and nature of any arising conflict of interest ("Amended and Restated Code of Ethics for Executive Officers, Senior Financial Officers, and Directors," 2016).

Other aspects of the code of conduct that are also related and can impact business operations include the prohibition of the use of company position by an employee, the use of company property, or company information for making personal gains. Such acts can only be done with direct permission from the Audit Committee. This measure ensures that the company does not carry the reputation of its officers using their influence to make transactions and hence helps in enhancement of a professional image. Breach of information from the company is also prevented which can prevent vital strategic or proprietary information falling into the hands of the competitors for example.

The code also necessitates that no officer or director of the company shall appropriate any business opportunities that come to the company while that individual is serving as a representative or stakeholder for that organization. This code essentially seeks to prevent any form of sabotage or corruption from within the company and helps in prevention of business loss because of internal factors ("Amended and Restated Code of Ethics for Executive Officers, Senior Financial Officers, and Directors," 2016).

Explain the key steps that the company should take to ensure that employees follow the code of conduct

The company can take several steps to promote the adherence to the code of ethics. The company should institute short-term training programs for the employees to promote ethical behavior according to the code of ethics the company has implemented. The training should also be conducted to make the employees understand the importance of following the code of ethics. Regular sessions with the staff members to discuss the approach to ethical dilemmas should also be undertaken in practice scenarios ("Code of Ethics and Code of Business Conduct (Revised March 2006)," 2016).

As an incentive for the employees, the company should also instill a system of rewards for exemplary ethical behavior with the aim of promoting the ideal image regarding the code of ethics and reward such ethical behaviors among the entire staff. The managers and senior officers of the company should also be encouraged to set examples based on their own conduct for junior staff members by following the ethical codes and conducting themselves appropriately by modeling an ethical disposition at all times. Similarly, high ethical standards should be set by the top management of the company as examples for the entire staff. The company should also consider and discuss the aspects of creating an adequate work-life balance for the employees so that the employees do not feel discontent regarding their expectations, and poor morale among the employees is prevented.