Question

Assignment Details

This assignment has 3 parts:

Ethical behavior is important to the accounting profession as well as the general business environment.  Most companies have code of conduct policies and ethical training to ensure all employees understand the company’s behavior expectations and responsibilities.  

What are the advantages and disadvantages of a company having a formal code of conduct that employees are obligated to follow? 

What are your thoughts about whether employees should have to participate in mandatory ethical trainings each year? 

How might having a code of conduct help an employee make decisions when faced with an ethical situation?

Answer 1

1) Advantages of formal code of conduct

• It improve the quality and brings consistency in business.
• It create strong relationship between staff and management.
• Build reputation of company.
• It prevent employees from violating laws and regulation.

Disadvantages of formal code of conduct

• It can be expensive and time consuming because proper administration is required.
• Comprehensive management support is required.
• In order to apply formal code of conduct to everyone ,it needs to be vague.
• Code of conduct should be routinely enforced to make it effective.

2)Yes,employees should have to participate in mandatory ethical training because

• It grows confidence of employees to make right decision.
• It enables employees to use good judgement to address issues related to ethical challenges in workplace.
• It motivate employees to become more productive.

3)Code of conduct states the values of organisation .With the help of training ,employee can learn how to analyse issues arising in workplace or dilemma and how to reach the best decision that is in interest of company.