Professional Documents
Culture Documents
Business Ethics
Business Ethics
Fall
2023
mmaher@nu.edu.eg
(4)
Outlines
• Codes of ethics
of • Codes of conduct
• Codes of Ethics vs Codes of
Conduct.
Lecture o Similarities.
o Differences.
7 o Working Together.
o Smaller Businesses.
• Conclusion.
Codes of Ethics - 1
Sometimes (wrongly) referred to as a value statement,
Code of Ethics behaves like the "Company's
Constitution" with general principles to help guide
employee behavior.
Code of Ethics document outlines a set of principles
that affect decision-making.
For example if an organization is committed to
protecting the environment and "being green", the Code
of Ethics will state that there is an expectation for any
employee faced with a problem, to choose the most
"green" solution.
Codes of Ethics - 2
Code of Ethics works on the bases of "treat others as
you would like to be treated."
When faced with ethical dilemmas or debatable
situations, what is articulated in the Code of Ethics can
help guide decision-making.
Codes of Conduct
Some professions, such as medicine, engineering and
the law, have traditional Codes of Conduct.
Business is different in not having a mutually shared
standard of ethics.
This is changing, however, as evidenced by the array of codes
of conduct and mission statements many companies have
adopted over the past century.
What central point might constitute such a code?
Essentially, a commitment to treat with honesty and integrity
customers, clients, employees, and others affiliated with a
business (stakeholders).
Codes of Conduct - 2
A Code of Conduct defines how a company’s employees
should act on a day-to-day basis.
Code of Conduct reflects the organization’s daily
operations, core values and overall company culture.
As a result, every Code of Conduct is unique to the
organization it represents.
Yet many companies struggle with how to write a great
Code of Conduct and, as a result, their codes may fall short.
Codes of Conduct - 3
Writing a great Code of Conduct requires a
thorough understanding of the company, its culture and
vision.
But no matter the company is, all great Codes of Conduct
share certain characteristics, which is to elaborated shortly.
A Code of Conduct is not the same as a Code of Ethics.
A Code of Ethics governs decision-making, and a Code of
Conduct governs actions.
They both represent two common ways that companies self-
regulate.
They are often associated with large companies, and provide
direction to employees and establish a public image of good
behavior, both of which benefit businesses of any size.
Introduction to Ethics (HUMA-102) @ NU Dr. Muhammad Maher Saturday, 11 November, 2023
10
Codes of Conduct - 4
However, any company large or small, public or
private, will benefit from having a set of documented
rules in place where employees and other stakeholders
can reference to ensure they are performing in their
positions as expected by the company behavior, both of
which benefit businesses of any size.
Codes of Conduct - 5
The Code of Conduct provides the meat and potatoes
(necessary ingredients) to the Code of Ethics.
A Code of Conduct applies the Code of Ethics to a host of
relevant situations.
A particular rule in the Code of Ethics might state that all
employees should generally obey the law.
A Code of Conduct might list several specific laws relevant
to different areas of organizational operations, or industry,
that employees need to obey.
Codes of Conduct - 6
A Code of Conduct outlines specific behaviors that are
required or prohibited as a condition of ongoing
employment.
A Code of Conduct might forbid sexual harassment, racial
intimidation or viewing inappropriate or unauthorized
content on company computers.
Codes of Conduct, along with other measures, have helped
some companies dig themselves out of scandals, and have
helped many companies build a healthier workplace climate
and reputation.
Codes of Conduct - 7
An example of an ethical dilemma that employees regularly
come face to face with is gift giving and accepting.
This can sometimes be a bit of a tricky situation to navigate
because in some cultures small gifts are tokens of respect and
gratitude.
Acceptance of large gifts may produce the appearance of an
improper relationship between the company and the
recipient, and vice versa.
Work with management is required while consulting the
Code of Conduct to come to a generally accepted resolution.