Business Code of Ethics - Research Paper Example

On the other hand, ethics is more social and more specific than morality and the practical counterpart of it (Stewart, 2011, p. 7). It serves as the guide for the actions and behaviors especially in professions and organizations. In business, it is also very important especially in companies where complex system works together with many people involve. Some actions are not tolerated as those may become detrimental to the individual and to the whole organization. Misbehaviors may destroy the reputation of the business and may affect its sales (Boone and Kurtz, 2011, p. 197). Later on, profits may also decline as a result of losing sales that may lead to more undesirable conditions of the organization.

It may not be able to sustain its operations and the management may decide to have massive lay-off to save the company. If it comes to the worst case scenario, the company will close due to bankruptcy. The illustrated possibilities that may happen to the company due to misbehavior only show how ethics is important to guide each person in his course of actions in his daily life especially during the times he spend in working for the company. It shows how it is important for the management to place some ways of control over the working system of the company to ensure that ethics is followed by the members of the organization and prevent the occurrence of undesirable conditions.

Rules and regulations are then presented to the employees as they must know the allowable actions and disallowable actions that are subjected to sanctions. Good performance leads to rewards while misconduct leads to punishment. Standards are also held in place to provide a guide for the employees to follow regarding the level of productivity and performance that they must render. Standards and the rules and regulations are affected by the code of ethics. Since conducting a business is also a profession, it requires a list of norms that people must follow.

To make the concept of code of ethics clearer, a specific definition must be given. As said in the preceding sentences, code of ethics is established for certain particular professions to ensure quality services and meet the needs of the clients. The code contains a list of norms that professionals must follow throughout their careers (Marquis and Huston, 2009, p. 77). Therefore, the code defines the identity of the certain profession being practiced while ensuring the values to reflect on the performance.

Sometimes code of ethics is called code of conduct as it pertains to the correct or wrong actions and behaviors. In business, it is installed in the company to ensure the top-of-the-line services and products are delivered to the clients as they are important to the profits that drive the operations of the company (Ferrell et. al., 2011, p. 347). Without profits, company will not be sustainable and may eventually close. In making a code of ethics, it requires to have a basis. The basis then for the code of ethics to substantiate is to identify the underlying values.

Values are then important not only in adding ease to the lives of people but also bringing a progressive uplift to the society as a whole. It also leads to the enhancement of the quality of lives around the world (Shaikh, 2010, p. 480). Therefore, the code then must consider not only the values and service quality but also the prevailing culture and beliefs in the locality where it operates