Ethics and moral responsibilities have been an issue for centuries. Donaldson T. and Dunfee T.W. (1994), Toward a unified conception of business ethics: integrative social contracts theory, Academy of Management Review, vol. It deals with issues regarding the moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and dealers.
Making sure your code of ethics is neither too vague, nor too specific can be a challenge, and a slip up can make employees resentful of the endeavor. These preexisting values can also impact how an individual will transfer observations into ethical rules.
This code of ethics consists of the preamble, followed by the principles of ethics that reflect compliance and responsibility of employees regarding the code of ethics, and practical guidelines that set the standard for ethical decision-making. The CEO should have strong commitment towards ethics and ethical conduct and should give a constant leadership in renewing the values of an organisation.
9. Business Ethics are values-based. For example, many businesses are now feeling a social responsibility to cut back on their pollution in the environment. FRP’s leadership has the additionalÂ responsibility of setting an example by their personal conduct and attitude, providing a platformÂ to treat employees, customers, prospects, suppliers, competitors, and tenants, with equal honesty and respect.
But ethical behavior is just and fair conduct which goes beyond observing laws and government regulations. Corporate policy ethical issues happen in the basic operations of a company. In fact, these days there is a lot of talk about environmental footprints and your business ethics will play a role in what your company does to reduce its impact on the environment.