Code of Ethics - Assignment Example

16 September 2007 of Ethics Individuals encounter moral dilemmas frequently in their working lives and are likely to find them very difficult. Though ethics resembles morality in this internal aspect, it is not just ordinary morality, something that is or should be common to all rational persons, to all rational persons in this society, or even to all rational persons in a particular occupation. Groups like banking and finance professionals actually "create" their ethics; they do not simply "discover" them in the larger society. The role of code of ethics is to define and stipulate professional norms, duties and responsibilities of the employees. The selected workplace is a bank with 30 employees. Code of Ethics The aim of the Code is to set principles and guidelines for employees by which they operate and conduct their daily activities (Frederick 153; Trevio et al 141). Honesty, integrity and fair treatment of stakeholders are the main principles of the Code. 1. Abiding by the law bank employees should undertake at all times to comply with or observe all applicable laws and regulations, everywhere they operate. 2. Employees should maintain professional confidence and respect existing laws. 3. Integrity of records bank employees should maintain books and records with integrity,. Note: The reliability of accounting information and records is a basic element of the bank's integrity. 4. Free competition The banking and finance industry believes that free and fair competition is the basis of the free market economic system and avoids collusive, anti-competitive discussions and/or agreements with competitors. 5. All employees should be honest and trustworthy, be fair and tolerant. 6. Misappropriation employees shall not convert to their own use and benefit any funds (whether employee or not) in such misappropriation. 7. Conflict of interest: private business interests. Employees who are bank or financial institution employees owe their devotion to their employer. They must avoid participating in any decision, by or on behalf of their bank, which may affect any private business in which they have an interest, unless they have disclosed the nature and extent of that interest to a relevant superior in the bank or financial institution. 8. Conflicts of interest: citizenship duties. "Banking employees who discharge citizenship responsibility through membership of public or quasi public decision making bodies (school boards, town councils, etc.) should be alert to possible conflicts of interest and declare any such conflict" (Frederick 157). 9. Customer privacy and employer information. Employees must respect their employer's obligation to protect the confidentiality of customers' affairs. Similar respect must be paid to the privacy of fellow employees. In addition, certain information about the bank's or financial institution's plans, methods and activities is considered by the employer to be proprietary and confidential and members must not disclose such information without proper sanction. 10. Inside information about the employers' affairs or those of customers shall not be used by employees for their own gain, or for that of others. The bank requires the heist level of confidentiality. 11. Employees are obliged to report any illegal behavior and actions. 12. Employees are obliged to report any illegal behavior and actions. 13. Banking employees shall not use their employment status to seek personal gain from those doing business or seeking to do business with their employer, nor accept such gain if offered. 14. Social responsibility Employees who are managers should give full consideration not only to traditional financial factors but also likely economic and social effects of their decisions (Frederick 154-155). Implementation Process The role of the implementation is to provide support to employees and help them to meet criteria established by the Code. The objective is to raise awareness of the Code and its principles, encourage employees to take an active part in change process. Implementation stage implies that needs to be raised, via a process of encouraging employees to question their attitudes and preconceptions. Needs should be raised in all employees at all levels, especially managers (Frederick 244). The content of the plan: the implementation will be based on workshops and competition. Stage One: problem identification. This stage will involve valuing differences approach to ethics and moral behavior. Following this approach would mean recognizing and highlighting differences, and being prepared to give special training to groups who may be disadvantaged and lack self-confidence. Employees will be encouraged to describe possible problems and threats caused by lack of ethical and moral principles. Employees will be given a copy of the Code and are expected to discuss it. Some standards of ethics derive from voluntary agreement by members of a particular industry. So, it is important to involve employees in the process of improvement (Frederick 245). Stage Two: workshops and discussions. The benefit of workshops is that it allows time for individuals to think. The aim of workshops is to check employees' assumptions and reassess their knowledge and awareness of the Code. Key issues that need tackling in arranging training are ensuring that the facilitator has the appropriate skills. Workshops will take 25-30 minutes twice a week (during two weeks). Discussions may begin spontaneously or be planned by the trainer. In either case, sufficient time should be allowed for discussions. It is also imperative for the trainer to be familiar with the subjects being discussed. Groups of more than fifteen should be divided into small subgroups in order to permit each trainee the opportunity to actively participate. Whenever possible, the participants should be seated so that they can see each other. Stage three will be based on follow-up support aimed to provide consultation for on-going planning and commitments. When all employees are familiarized with the Code, the bank can organize a competition between different departments in order to motivate and encourage employees. The task is to meet standards and procedures stipulated by the Code. It is possible to use ten-point scale to evaluate results of each 'team' on a weakly basis. The selected Committee will evaluate work and number of complaints received by each department. The winner will receive an award (financial aid or appraisal). This approach will motivate and inspire employees to study and meet the Code and behave morally. The advantages of the Code and its implementation stage are that it clarifies the decision maker's principles on which ethical and moral behavior is based; it helps people to think about the issues while in a dispassionate frame of reference and untroubled by a particular case; it provides employees with a reference point when they wish to question compliance with behavior about which they have serious reservations; and they define the limits of acceptable behavior. Works Cited 1. Frederick, R. (ed.) A companion to business Ethics. Blackwell Publishers, 2002. 2. Trevio, L.K., Weaver, G.R., Gibson, D.G., et al., 'Managing ethics and legal compliance: what works and what hurts', California Management Review, 41 (1999): 131-151. Read More