CODE OF ETHICS

CODE OF ETHICS
• A code of ethics is a guide of principles designed to help
professionals conduct business honestly and with integrity. 
• A code of ethics document may outline the mission and values of
the business or organization, how professionals are supposed to
approach problems, the ethical principles based on the
organization's core values and the standards to which the
professional is held.

2
CODE OF ETHICS
• Breaking the code of ethics can result in termination or
dismissal from the organization. A code of ethics is
important because it clearly lays out the rules for behavior
and provides the groundwork for a preemptive warning.

3
Compliance-Based Code of Ethics
• For all businesses, laws regulate issues such as hiring and safety
standards. Compliance-based codes of ethics not only set guidelines
for conduct, but also determine penalties for violations.
• This type of code of ethics is based on clear-cut rules and well-
defined consequences rather than individual monitoring of personal
behavior. Therefore, despite strict adherence to the law, some
compliance-based codes of conduct do not promote a climate of
moral responsibility within the company.

4
Value-Based Code of Ethics
• A value-based code of ethics addresses a company's core value
system. It may outline standards of responsible conduct as they relate
to the larger public good and the environment. Value-based ethical
codes may require a greater degree of self-regulation than
compliance-based codes.

5
Code of Ethics Among Professionals
• Financial advisers registered with the Securities and
Exchange Commission or a state regulator are bound by a
code of ethics known as fiduciary duty. This is a legal
requirement and also a code of loyalty that requires them to
act in the best interest of their clients.

6
CODE OF ETHICS
AND BUSINESS
ETHICS
7
CODE OF ETHICS AND BUSINESS
ETHICS
Code of Ethics
Code signifies as a system of principles or rules (Merriam-Webster)

Ethics is a set of moral principles, especially ones relating to or affirming

a specified group, field, or form of conduct. (Oxford Dictionary)

Code of Ethics
 

8
CODE OF ETHICS AND BUSINESS
ETHICS
Business Ethics

Business is an organization or economic system where goods and services

are exchanged for one another or for money.
Ethics is the discipline that investigates the rightness and wrongness of
human actions.
Business Ethics is the discipline used to explore the rightness and
wrongness of business activities and the conduct of the businesspersons
and professionals.
Business Ethics is an Applied Ethics.
9
CODE OF ETHICS AND BUSINESS
ETHICS

Ethics is generally divided into three sub-fields:

• Metaethics focuses mainly on the investigation of the sources of our
ethical principles
• Normative ethics attempts to come up with ethical principles that we
can use to judge whether the actions are right and wrong.
• Applied ethics investigates morally debatable issues such as death
penalty, contraceptives etc.
10
CODE OF ETHICS AND BUSINESS
ETHICS
• Business ethics is an applied ethics because it talks about morally
debatable issues in the field of business and commerce.
• Even in the field of business ethics comes with further division into
accounting ethics
• Ethics for economics, marketing ethics, ethics of financial
management and advertising ethics.
• One field cannot monopolize it; it is because business ethics stands as a
unique subject. It demands synergy from different fields such as history,
economics, philisophy, theology, sociology, psychology, politics, law,
finance, marketing and so on.

11
CODE OF ETHICS AND BUSINESS
ETHICS

12
IMPORTANCE WHY DO
WE NEED TO STUDY
ETHICS

13
IMPORTANCE WHY DO WE NEED TO
STUDY ETHICS
1. Ethics lays the strategic decision-making. Leaders and workers of a business
characterized by ethical behavior make decisions that are socially acceptable.
They allow all the stakeholders to participate in the decision-making process.

2. An ethical business attracts investors. A business that promotes ethics in its

management and operations create an investment-friendly environment.
Investors like putting their money where they are sure it is safe.

3. Good Business ethics is the key to enhancing productivity. People will

work harder at their jobs if they believe that what they are doing is ethical. 
14
IMPORTANCE WHY DO WE NEED TO
STUDY ETHICS
• A business that values ethics attracts more suppliers. A business
without suppliers is as good as a failed enterprise. Suppliers are
attracted to a company that appreciates what they supply and pay for
them promptly.
 
• Ethics helps in maintaining quality. An ethical company will strive
to deliver goods and services of high quality to their customers even
in times when the demand is higher than supply.

15
IMPORTANCE WHY DO WE NEED TO
STUDY ETHICS
Conclusion
Having an ethical business is essential if you want your
business to be a real success in the long term. Good business
ethics keep your customers satisfied, they encourage people
to buy in to your business.

16
COMPONENTS OF
CODE OF ETHICS

17
 ETHICS
What is Ethics?

• According to Jones, Ten Bos, and Parker “ethics” came from the Greek
word ethos which means “character, habit, dwelling place”. Clarence
Walton reports that Aristotle derived the term ethics from ethos which, in
turn, found its source in ethimos which means regularity and routine.
Thus, ethos may refer to one’s character which is a product of what one
does regularly and repeatedly so that it has already become a routine.
• Ethics is the discipline that examines one’s moral standards or the
moral standards of a society. It asks how these standards apply to our
lives and whether those standards are reasonable or unreasonable.
18
COMPONENTS OF CODE OF ETHICS
Values
• The values of the company should be expressed with honesty and
fairness. The values sum up the company’s reputation wherein all
interactions are treated with respect regardless of position and
circumstances.
Principles
• Business principles such as customer satisfaction, business
profitability, and continuous improvement are just some of the
principles that stakeholders live by. Corporate social responsibility is
also another principle found in the code of ethics.
19
COMPONENTS OF CODE OF ETHICS
Management Support
• Management is serious in considering the code as the bible of the
employees in terms of ethics. To show support, management allows
the display of this code of ethics in prominent and strategic places in
the work area.
Personal Responsibility
• Any member of the organization should uphold and preserve the code
of ethics because any violation of the code may involve legal and
moral consequences. Each employee should be guided by the code
and must report anyone who violates it.
20
COMPONENTS OF CODE OF
ETHICS
Compliance

• All legal requirement of the code should be met. Any licensing

requirement, including but not limited to reporting of financial
statements, should be met.

21
FOUR ORGANIZATIONAL
CULTURES

22
FOUR ORGANIZATIONAL CULTURES
Corporate Cultures

According to Oxford Dictionaries

Corporate = Relating to a large company or group.
Culture = the ideas, customs, and social behaviour of a particular people
or society.

Therefore Corporate Culture is defined as the values, standards, attitudes

and beliefs shared by the members of an organization
23
FOUR ORGANIZATIONAL CULTURES

I. Team-oriented Culture

This culture prioritizes the happiness of the employee’s, believing that their
happiness will affect their productivity. Characterized by the following:
a. Regular socializations
b. Interaction with different departments
c. Getting thoughtful feedback from the employees

•It is important that they do this to instil loyalty, collaboration and good
communication within the corporation.
24
FOUR ORGANIZATIONAL CULTURES
II. Elite Culture
This culture revolves around hiring the best qualified
individuals.
It values work-oriented people
Those with high inputs move up the ranks more quickly
Usually has a fast growth pace and innovative ways of
doing things.

25
FOUR ORGANIZATIONAL
CULTURES
III. Horizontal Culture

This culture is common among younger companies where everyone

voices their ideas and titles are not important.

Ex. SquareSpace (they offer convenient ways to make your own

website) – they reduce the management levels of the managers and the
staff, plus they give benefit packages such as flexible vacation
lengths, enjoyable working spaces, prepared meals, well-supplied
kitchens, monthly parties, relaxing spaces and regular conferences.

• Sourced link: 26
FOUR ORGANIZATIONAL
CULTURES
IV. Conventional Culture

This culture has a more traditional manner to which

hierarchies are defined and dress codes are followed.
Such examples are schools and banks

27
CODE OF BASICS

28
CODE OF BASICS
• Code of ethics sets the company’s mission, values, ethos, objectives,
and responsibilities to guide employees on how to deal different
scenarios in the workplace.
• Every code is different as it reflects the organization’s own essence.
• The code should be simple, concise, and easily understood.
• The code of ethics applies to all employees.

29
Key Elements of a Code of
Conduct
1. Introduction
  • An introductory letter from the CEO or leader define the
importance of compliance.
2. Mission, Vision, Goals, and Principles
• A brief mission, vision, goals, and principles that
reflects the commitment of what is important to the
organization.

30
Key Elements of a Code of
Conduct
3. A framework to assist employees in making the right choice
• Explaining ethical challenges typical to the business or situations that
may have occurred in the past can help employees reason through the
challenges they may encounter and understand what the company is
expecting of them.

4. For topics not covered by the rules, further suggestions are

recommended by the Code.

31
Key Elements of a Code of
Conduct
5. Set up clear whistle-blowing policies to reassure everyone that the
company will protect what is right and just

6. List available resources for guidance and assurance of

confidentiality and nonretaliation

7. Revision
• As the business environment change, the code of conduct must be
updated and revised to reflect changes.
32
Key Elements of a Code of
Conduct
• Implementation
Having a code of ethics is meaningless unless it is communicated to
all members of the corporation.
It can be in a form of:
A sheet of paper
A bound file
An electronic copy
A webpage
Regardless of its form, the important thing is that it is implemented an
enforced
33
Key Elements of a Code of Conduct

Requires Training
• The code of ethics cannot be just a signed piece of paper. It has to be a way
of life in the company’s daily life. One of the ways is:
• To have mandatory immersions to gain appreciation for the code and
understand its seriousness
• Everyone may also receive useful guidance
• Apart from trainings, a good way to keep everyone updated is to do annual
webinars on the Code of Ethics followed by a mandatory comprehension
exam.
34
Key Elements of a Code of Conduct

Enforcement
A company that wants to uphold strong ethics cannot bend the
rules regardless of the magnitude of financial damage it would cost.
Rule 63. Illegal possession, use of, and/or selling any prohibited or
regulated drugs inside Company Premises.
First offense: Immediate Termination

35
Examples of Contents in
Code of Ethics

36
Examples of Contents in Code of
Ethics
• Confidentiality and Privacy Policies
• Professional Appearance
• Promoting Green Business Practices
• Obeying the Law
• Caring and Considerate

37
THANK YOU AND
GOD BLESS!!
38