Microsoft Corporation's Code of Ethics and Social Responsibility

Introduction: Microsoft's Published Ethical Code

Defenders of nonproprietary software — as opposed to Microsoft's proprietary model — might argue that a Microsoft code of ethics is an oxymoron, given the company's perceived rapacity and market dominance. Nevertheless, Microsoft Corporation does have a formal, published ethical code: the "Microsoft Standards of Business Conduct." These standards are both publicly accessible and formally defined, included as a section on the company's official corporate website devoted to business responsibility.

This section defines, publicly for all internet users as well as for shareholders, Microsoft's regulatory compliance — including antitrust, insider trading, and patent laws — its respect for the diversity of its employees and customers, its support of political action on the part of its employees, its commitment to technology development, its respect for online customer privacy, and its ethical relations with vendors. It also stresses repeatedly that Microsoft honestly and accurately records and reports business information. As the document states: "We comply with all applicable local, state, and federal laws regarding record completion and accuracy, and are fiscally responsible." (Microsoft Standards of Business Conduct, 2003)

Adequacy of the Code of Ethics

Microsoft's code of ethics applies to company software development, the legal and financial compliance of its various national and international business dealings, and the fair treatment of employees and customers. It is sweeping in its manifesto — but so sweeping that it tends toward vagueness. Other than stressing Microsoft's compliance with laws, it offers little specificity as to how that compliance is achieved. In the section addressing antitrust law, for example, the code simply states that Microsoft is not in violation of these laws. Implicit is the company's attempt to repair some of the reputational damage caused by the U.S. federal government's antitrust lawsuit regarding Internet Explorer. Yet the code merely denies any violations without mentioning the lawsuit, explaining why the company believed the browser was wrongly targeted, or specifying how antitrust compliance is being achieved going forward.

The code contains many vague generalities, such as: "As responsible business leaders, it is not enough to intend to do things right; we must also do them in the right way. That means making business decisions and taking appropriate actions that are ethical and in compliance with applicable legal requirements." (Microsoft Standards of Business Conduct, 2003) One might reasonably note that merely complying with the law is not a particularly high standard to boast of — it is a bit like a person bragging that they have never been to prison. The code also does not explain how the business achieves compliance with antitrust standards or any other standards in practice.

Additionally, the code itself acknowledges its own limitations: "The Standards of Business Conduct are not intended to cover every issue or situation you may face as a Microsoft employee. Nor does it replace other more detailed policies. You should use the Standards as a reference guide in addition to Microsoft's policies, including the Employee Handbook, required for your specific job. For example, the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Corporate Controller, and other employees of the finance organization must also comply with the Microsoft Finance Code of Professional Conduct." (Microsoft Standards of Business Conduct, 2003) This admission further underlines the vague and non-situation-specific nature of the code.