Question

Business Ethics

Who are those codes aimed at? Is that believable?

Answer 1

You can actually break business ethical codes into three broad categories that are based upon the approach each takes in maintaining ethical and legal compliance. Let's take a short look at each.

Codes of conduct typically prohibit behavior and inform employees what is expected of them. Codes of conduct often outline penalties for failure to comply with the code. Common topics include conflicts of interest, political contributions, and acceptance of gifts.

Codes of practice attempt to explain and illustrate the values and principles of the business. Instead of providing strict rules to follow, codes of practice educate employees on how things are done in the business. These codes attempt to empower the employee by making the employee an ethical decision maker.

Codes of ethics codify the values and principles of the company and define the responsibilities, duties, and obligations organizational members have to the organisation and its stakeholders