Code of Ethics Design Paper

Code of Ethics Design Paper
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Introduction
The code of ethics relates to the principles that guide an organization or group, and it helps people affiliated with organizations to understand what the organization stands for. In essence, the code of ethics institutionalizes ethics in organizations spelling out the duties, rights and responsibilities for the stakeholders. Similarly, the code of ethics informs the decision making processes as it acts as a point of reference. In any case, the code of ethics is a governance and strategic tool for organizations and is dependent on the organizational structure (Ferrell & Ferrell, 2013). The code of ethics should be compatible with common morality, but also specific to the needs of the organization and its stake holders. This paper first explores the general overview of ethics policies, then focuses on the rationale for a code of ethics and finally proposes a code of ethics.
General overview of organizational ethics policies
Organizational ethical principles are a recent phenomenon and have tended to bind the actions of board directors. Boards have mostly been governed by procedural practices, by laws and at times by agreements binding the actions of the boards, with agreements spelling out the roles, rights and responsibilities for stakeholders in organizations. A code of ethics typically relates to values of an organization and its application to the wider community (Ferrell & Ferrell, 2013). Rules and regulations in organizations form the basis of the code of ethics, and this helps staff to achieve organizational goals. Essentially, the code of ethics seeks to ensure that there is adherence to professional integrity and facilitate the control process in organizations.
Rationale for design of code of ethics
Each organization has its code of ethics to establish the standards of behavior expected among stakeholders. Among professional organizations the code of ethics has been seen to an integral part in articulating professional standards. Nonetheless, all organizations also need the code of ethics to improve business relationships. The code of ethics is designed to improve relations with other organizations and the public as the organization does not operate in a vacuum. Similarly, recognition that clients to the company are important for the growth prospect of the company influences the code of ethics. Thus, customer relations and feedback from clients inform the framers of a code of ethics on the best course of action, and also help to deal with negative situations in the organizations with more clarity.
The mission of a hypothetical organization is to be a reliable partner in provision of services, and the vision statement seeks to make the organization the leading services provider in five years time. The code of ethics binds the staff to realize the goals of the organization while also focusing on the mission and vision of an organization. In communicating the code of ethics to all stakeholders it is necessary to partner with them to avoid conflicts and manage crisis better. In order to enforce the code of ethics it is necessary to communicate the code through numerous channels, followed by explanation and a reward system for staff who best demonstrate the code of ethics. This should be complimented by performance appraisal that takes into account the role of code of ethics. Engaging other stakeholders allows the organization to bring on board stakeholders with the code of ethics placing confidence in an organization.
It is also essential to promote appropriate behavior in an organization through a code of ethics that is understandable to employees and the management. Since the stakeholders understand what is expected of them they are more likely to act professionally if they understand the code of conduct and this eventually helps to meet the operational standards of organizations. Furthermore, employees are made to understand why their actions are wrong by using the code of ethics as a reference point. Adherence to a code of ethics in turn improves an organization’s reputation and improves staff behavior. In some instances, organizations can limit liability from unprofessional staff through use of code of ethics.
Singh (2011) conducted a survey to find out the effectiveness of code of ethics in Canada in big corporations, and came up with eighteen variables which explained 58.5% of the reasons for effectiveness. Among the major reasons for the effectiveness or failure of code of ethics depended on communicating to the employees, with communication meant to enhance commitment to provisions. The research further stated that penalties imposed determine how employees adhere to the code of ethics, and through the appraisal system it is possible to increase conformity to the code. Ultimately, the author states that the research showed that willingness to report wrongdoing among the employees would lead to effectiveness of the code in the long run.
For the implementation plan of the code of ethics to succeed, it is necessary to liaise with all the stakeholders. Thus, strategic planning where employee appraisal is put in place gives a clearer picture on ethical evaluation. Furthermore, there will be code implementation through training for staff. Singh (2011) asserts that communication is vital in enforcement of the code of ethics and employees should be made to understand the consequences of violating the code. Communication als...