Company Codes of Ethics

Purposes of codes of ethics

1. To convey the ethical values of the company to interested audiences including employees, customers, communities and shareholders.

2. To control unethical practice within the organisation by placing limits on behaviour and prescribing behaviour in given situation.

3. To be a stimulant to improved ethical behaviour in the organisation by insisting on full compliance with the code.
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Contents of a corporate code of ethics

The typical contents are as follows:

(A) Values of the company
This might include notes on the strategic purpose of the organisation and any underlying beliefs, values, assumptions or principles. Values may be expressed in terms of social environmental perspectives and expressions of intent regarding compliance with best practice, etc.

(B) Shareholders and suppliers of finance
In particular, how the company views the importance of sources of finances, how it intends to communicate with them and any indications of how they will be treated in terms of transparency, truthfulness and honesty.

(C) Employees
Policies towards employees, which might include equal opportunities policies, training and development, recruitment, retention and removal of staff.

(D) Community and wider society
The manner in which the company aims to relate to a range of stakeholders with whom it does not have a direct economic relationship (eg neighbours, opinion formers, pressure groups etc).
It might include undertakings on consultation, ‘listening’. Seeking consent, partnership arrangements (eg in community relationships with local schools) and similar.

(E) Supply chain/suppliers
This is becoming important as stakeholders scrutinise where and how companies source their products (eg farming practice, GM foods, fair trade issues etc).
Ethical policy on supply chain might include undertakings to buy from certain approved suppliers only, to buy only above a certain level of quality, to engage constructively with suppliers (eg for product development purposes) or not to buy from suppliers who do not meet with their own ethical standards.

(F) Customers
How the company intends to treat its customers, typically in terms of policy of customer satisfaction, product mix, product quality, product information and complaints procedure.



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