Assignment

Corporate Ethics
And
Values
- Pranav, Andre
Corporate Ethics
What is a Code of Ethics?
A code of ethics outlines a set of certain principles established by the
corporation. These principles can be used both as the basis for
requirements and limitations. Typically, a code of ethics is founded on a
set of core principles or values and is not designed for expedience. These
principles are illustrated with behavioral examples. Those subject to the
code are expected to understand and apply the examples in situations the
code does not specifically address. Organizations expect that the
principles, once communicated and illustrated, will apply in every case,
and that failure to apply the principles can be a cause for disciplinary
action.
How is a Code of Ethics Created?
To create a code of ethics, an organization must define its most important
guiding values, formulate behavioral standards to show the application of
those values to the roles and responsibilities of the persons affected,
review the existing procedures for guidance and direction as to how those
values and standards are typically applied, and establish the systems and
processes to ensure that the code is introduced and effective. odes of
ethics require lots of time to establish. !deally, the development of a code
will be a process in which "oards and senior management actively debate
and decide core values, roles, responsibilities, expectations, and
behavioral standards. #sually, codes of ethics are divided into five
sections$
%. The introductory section, in which the organization introduces the code
and explains why it is important, to whom it applies, and how it is to be
used. The introduction also typically contains a personal statement by the
&O of his or her commitment to the values contained in the code, and a
promise to act consistently with those values.
'. A statement of core values and principles with each defined in simple
business language. (rinciples may be )moral) principles, such as honesty,
respect, and fairness* they also may be )business) principles, such as
excellence, profitability, quality, or customer satisfaction. +imilarly, some
values might be characterized as )ethical) ,e.g., honesty and fairness-
while others are described as )organizational) ,e.g., excellence-
.. Behavioral examples explaining each value/principle Often these
examples involve the very types of problems and difficulties that an
individual might encounter in his or her job and are supplied with
references to specific company policies.
0. A discussion of the organization's supporting systems1the
infrastructure that supports the code. Typically, this includes such items as
where to go for interpretation, how to report suspected misbehavior, where
to find answers to frequently as2ed questions, and whether these systems
may be used anonymously. An organization generally will state its
commitment to confidentiality and non3retaliation for the use of any of the
supporting systems.
4. A statement regarding personal responsibility, indicating that it is each
one5s responsibility to 2now and understand the expectations and
requirements set forth in the code and to meet those standards. This can,
and often does, include a statement that employees must report suspected
misconduct and that failure to do so is itself a code violation. !t will also
typically affirm the potential for disciplinary consequences up to and
including dismissal for code violations
What are the requirements in the Commission's Code of Ethics?
6hile many companies have codes of ethics, the ommission7s code is
lin2ed only to employees of public companies who have financial
disclosure3related responsibilities.
%.8onest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional
relationships*
'.9ull, fair, accurate, timely, and understandable disclosure in reports and
documents that a company files with, or submits to, the ommission
and in other public communications made by the :company;*
..ompliance with applicable governmental laws, rules and regulations*
0.The prompt internal reporting of violations of the code to an appropriate
person or persons identified in the code* and,
4.Accountability for adherence to the code.)
Corporation: Walmart
A brief description:
Rank$ %
Previous rank$ '
CEO$ <ichael T. =u2e
6almart reclaimed the top spot in the 9ortune 4>> in '>%'
after slipping to ?o. ' last year. The retailer5s refocus on low
prices continued to attract shoppers into their stores.
9or fiscal year '>%', sales rose 4.@A, to B00..@ billion.
=espite relatively strong sales, 6al3<art must hold onto its
#.+. shoppers, which ma2e up C'A of the net sales.
"eyond the #.+., 6al3<art continues to investigate
allegations that executives in <exico paid more than B'0
million in bribes to speed the retailer5s expansion there. The
probe has widened to "razil, !ndia and hina.
Walmarts Code of ethics and corporate values
Their 3 main beliefs:
+ince +am 6alton founded 6almart, it has always been a values3based,
ethically led company. The values that guide our decisions and our leadership
are the . "asic "eliefs$
1) Respect for the individual
2) ervice the customers
3) trivin! for e"cellence
Their Ethics and Values
%.Compliance #ith $a#s D6almart complies with all prevailing laws, rules and
regulations pertaining to the development, testing, manufacture, mar2eting, sale,
use, and import or export of the product.
2%&oluntar' $abor D They want each of their employees to wor2 voluntary and
not under any peer pressure or for money mainly. They would li2e them to show
2een interest in their wor2 and let them also 2now that they are an important part
of the company.
3%(on)discrimination3 The first of the three basic beliefs upon which +am
6alton founded the company is Erespect for the individual.F &ach
of the employees is responsible for creating a culture of trust and respect that
promotes a positive wor2 environment. This means treating one another with
fairness and courtesy in all of their interactions in the wor2place. The company is
committed to maintaining a diverse wor2force and an inclusive wor2 environment.
*%+a!e and hour3 They are committed to complying fully with all applicable
laws and regulations dealing with wage3and3hour issues, including off3the3cloc2
wor2, meal and rest brea2s, overtime pay, termination pay, minimum3wage
requirements, wages and hours of minors, and other subjects related to wage3
and3 hour practice. They loo2 towards it so that no employee falls a prey to such
an issue.
,%-ealth and afet' D They are committed to health and safety of their
customers, members, and employees, because they care for one another.
onducting the business in compliance with all health and safety laws is crucial
to protecting each other from harm. As an associate of 6almart, always comply
with all relevant health and safety laws and policies. "y following these, they can
create and maintain a safe shopping and wor2ing environment for their
customers, members, and associates.
.%(o /ifts or Entertainment 3 Accepting gifts and entertainment can cause a
conflict of interest, or the appearance of a conflict between personal interests and
professional responsibility. The 6almart culture is to never accept gifts or
entertainment from any supplier, potential supplier, government, or any person
the associate has reason to believe may be see2ing to influence business
decisions or transactions. Associates also may not accept a gift or gratuity from a
customer for wor2 performed by the associate in a store or club, except as
required by local or national policy.
0%1ntentional dishonest'3 +triving for excellence means operating their
business with high integrity, and avoiding deceptive, dishonest,
or fraudulent activities. 9raudulent actions are not only unethical, but may also be
a violation of law. 6almart manages their particular area of business with as
much transparency as possible. Also, they encourage a wor2 environment that
supports the contributions of their sta2eholders, and is based on the company5s
values and ethics.
2%3nti)Corruption 3 6almart believes in fair, free and open mar2ets, and in
promoting good government. They do not tolerate, permit, or engage in bribery,
corruption, or unethical practices of any 2ind. "ribery of public officials in the #.+.
and abroad is illegal under both #.+. law and the local law of the countries in
which they operate. 6almart5s policy goes beyond these legal requirements and
prohibits corrupt payments in all circumstances, whether in dealings with public
officials or individuals in the private sector.
4%Environment D They are committed to environmental protection and
preservation of our natural resources. They5re also responsible for complying
with all applicable environmental laws and regulations. This responsibility is one
of the core foundations for their environmental sustainability commitment.
EAlthough we have posted all the codes of ethics of our company but, remember
no guide or manual can give you a complete set of rules. +o, in the end,
we all must trust our own good judgment of right and wrong.F
3 &O of 6almart
<i2e =u2e

American Marketing Association
The American <ar2eting Association ,A<A- was established in %@.G by
visionaries in mar2eting and academia. Today, the A<A has grown to be
one of the largest mar2eting associations in the world, with over .>,>>>
members who wor2, teach and study in the field of mar2eting across the
globe.
As the leading organization for mar2eters, A<A is the trusted go3to
resource for mar2eters and academics. 6e are counted on as the most
credible mar2eting resource where our members can stay relevant with
2nowledge, training and tools to enhance lifelong learning and obtain
valuable information and connections.
The A<A is constantly innovating and evolving, helping to shape the field
as well as 2eep abreast of the changing global mar2etplace to help our
members excel in their careers.
?o other organization provides more ways for mar2eters and academics to
connect with the people and resources they need to be successful.
Its Preamble
The American <ar2eting Association commits itself to promoting the
highest standard of professional ethical norms and values for its members.
?orms are established standards of conduct that are expected and
maintained by society or professional organizations. Halues represent the
collective conception of what communities find desirable, important and
proper. Halues also serve as the criteria for evaluating our own personal
actions and the actions of others. As mar2eters, we recognize that we not
only serve our organizations but also act as stewards of society in creating,
facilitating and executing the transactions that are part of the greater
economy. !n this role, mar2eters are expected to embrace the highest
professional ethical norms and the ethical values implied by our
responsibility toward multiple sta2eholders.
Their Ethical Norms
1%(ot to harm% This means consciously avoiding harmful actions or
omissions by embodying high ethical standards and adhering to all
applicable laws and regulations in the choices we ma2e.
2%5oster trust in the marketin! s'stem% This means striving for good
faith and fair dealing so as to contribute toward the efficacy of the
exchange process as well as avoiding deception in product design,
pricing, communication, and delivery of distribution.
3%Embrace ethical values% This means building relationships and
enhancing consumer confidence in the integrity of mar2eting by affirming
these core values$ honesty, responsibility, fairness, respect, transparency
and citizenship.
Their Ethical values
1%-onest' D to be forthright in dealings with customers and sta2eholders.
6hich means$
a. +trive to be truthful in all situations and at all times.
b. Offer products of value that do what we claim in our communications.
c. +tand behind our products if they fail to deliver their claimed benefits.
d. 8onor our explicit and implicit commitments and promises.
2%Responsibilit' D to accept the consequences of our mar2eting decisions
and strategies, also$
+trive to serve the needs of customers.
Avoid using coercion with all sta2eholders.
Ac2nowledge the social obligations to sta2eholders that come with
increased mar2eting and economic power.
onsider environmental stewardship in our decision3ma2ing.
3%5airness D to balance justly the needs of the buyer with the interests of
the seller, and$
Iepresent products in a clear way in selling, advertising and other forms
of communication* this includes the avoidance of false, misleading
and deceptive promotion.
Ieject manipulations and sales tactics that harm customer trust.
Iefuse to engage in price fixing, predatory pricing, price gouging or Ebait3
and3switchF tactics.
Avoid 2nowing participation in conflicts of interest.
+ee2 to protect the private information of customers, employees and
partners.
0.Respect D to ac2nowledge the basic human dignity of all sta2eholders.
To this end, also$
Halue individual differences and avoid stereotyping customers or
depicting demographic groups ,e.g., gender, race- in a negative or
dehumanizing way.
Jisten to the needs of customers and ma2e all reasonable efforts to
monitor and improve their satisfaction on an ongoing basis.
<a2e every effort to understand and respectfully treat buyers, suppliers,
intermediaries and distributors from all cultures.
4.Transparenc' D to create a spirit of openness in mar2eting operations,
also$
+trive to communicate clearly with all constituencies.
Accept constructive criticism from customers and other sta2eholders.
&xplain and ta2e appropriate action regarding significant product or
service ris2s, component substitutions or other foreseeable
eventualities that could affect customers or their perception of the
purchase decision.
=isclose list prices and terms of financing as well as available price deals
and adjustments.
C.Citi6enship D to fulfill the economic, legal, philanthropic and societal
responsibilities that serve sta2eholders, and$
+trive to protect the ecological environment in the execution of mar2eting
campaigns.
Kive bac2 to the community through volunteerism and charitable
donations.
ontribute to the overall betterment of mar2eting and its reputation.
#rge supply chain members to ensure that trade is fair for all participants,
including producers in developing countries.
Correlation bet#een +almart and 373
Both corporations have similar ethical values; both are very concerned
about health and safety to their worker and also about the general
behavior in the workplace. Walmart aims more towards guarding the
behavior and health of its workers while AMA looks more towards the
honesty and transparency of its employees. Ethical values of both
companies relate to responsibility and are against any form of
discrimination.
Walmart also focuses on the respect for the environment and is against
corruption while AMA focuses more on the people in the company
rather than what is external to the company. Walmarts work ethics also
state that they are committed to complying fully with all applicable
laws and regulations dealing with wage!and!hour issues" including off!
the!clock work" meal and rest breaks while protests occurred for the
same very reason.
Walmart faced various problems where workers were given low wages
that were lower than the federal poverty line at the time. Walmart sales
clerks earned #$.%$ per hour" # &'"$(& per year on average were
poverty line was #&)"('*.
Walmart also forced its workers to work off the clock without paying
overtime and didnt allow them to take lunch breaks and rest. Walmart
in %**+ was also filed for not providing a safe working environment for
its employees.
,his shows how Walmart might have good corporate ethics" but is it
really maintaing them-
Bibliography
Websites
&. www.ethics.org
%. www.fortune.com
'. www.marketingpower.com
). www.walmart.com
5. www.ethics.walmartstores.com
Books
&. Business Ethics! corporate values and society .Milton
/noeyenbos0
%. ,he ethics of management.1a2ue ,. 3osmer0
'. Ethical theory of business.4rofessor ,om Beauchar0