Copyright © 2012 Pearson Education, Inc. All rights reserved. Chapter 4 Code of Ethics

Copyright © 2012 Pearson Education, Inc. All rights reserved.

Code of Ethics Code of ethics: is a written document that clearly states what acceptable and unacceptable behaviors are for all of the employees in the organization. Represents the identification and explanation of what the firm considers acceptable behavior Factors influencing the development of Code of ethics : – Social factors – Personal factors – Organizational factors – Occupational factors

Copyright © 2012 Pearson Education, Inc. All rights reserved. Why Business Code of Ethics  Business code of ethics help define what is acceptable behavior in the workplace.  A code that is accepted by employees generally promotes high standards, whether in manufacturing, finance, customer service, or any other functional area of the company.  Employees working under code have a benchmark upon which they can judge their own behavior and that of others within the organization.. Benefits of a Code of Ethics

Copyright © 2012 Pearson Education, Inc. All rights reserved. Anticipated benefits — 1 Enhances reputation. Builds trust – internally and externally. Increases awareness of ethics issues. Guides decision-making. Reduces ethics risks. Questionable behavior decreases. Employee relations improve. Competitive positions improve Why Business Code of Ethics Benefits of a Code of Ethics

Copyright © 2012 Pearson Education, Inc. All rights reserved. Code of Ethics and Stakeholders Code allows firm to state its ethical vision to all stakeholders. Companies should consider four ethical values when developing a code of ethics: – Integrity. نزاهة – Justice. عدالة – Proficiency. اتقان – Utility. منفعة

Copyright © 2012 Pearson Education, Inc. All rights reserved. Steps for Effective Code of Ethics Step 1 : Create a list of all the standards by which you believe your company should take. Write them down on a piece of paper. This should include : The general values of the company, managers, and workers. The ways in which the company helps with employees' continued education; and how the business complies with all laws and reports all legal issues.

Copyright © 2012 Pearson Education, Inc. All rights reserved. Steps for Effective Code of Ethics Step 2 : Customize your code of ethics to your business. Include examples from your firm into the code. If, for example, you use a code of ethics from another business in your industry, rewrite the code so it has meaning and, therefore, benefit to your goals.

Copyright © 2012 Pearson Education, Inc. All rights reserved. Steps for Effective Code of Ethics Step 3 : Involve employees in the creation of a business code of ethics. Every employee has insight into the day-to-day operations and challenges. If, for example, a department experiences low confidence because of office gossip ( نميمة ), help employees find productive ways to build a culture of trust and respect.

Copyright © 2012 Pearson Education, Inc. All rights reserved. Steps for Effective Code of Ethics Step 4 : Write down "Code of Ethics". A code of ethics should be to the point, and simple to read. It should have a positive tone and focus on improving the lives of the business' directors, employees, and customers.

Copyright © 2012 Pearson Education, Inc. All rights reserved. McDonald's Code of Ethics for Employees Worldwide, McDonald's employees follow a standard ethical code. With franchises all over the world, McDonald's has developed a uniform standard of conduct that applies to all employees. It requires the employee, upon being hired, to sign a copy of these expectations of ethical conduct, confirming that the employee understands them and agrees to implement them.

Copyright © 2012 Pearson Education, Inc. All rights reserved. McDonald's Expectations McDonald's believes that “the customer is important”. They expect employees to be committed to their jobs and to their customers, and to behave as ambassadors of the company. They also believe that it is important to acknowledge the community that supports each McDonald's restaurant and to return that support to the community.

Copyright © 2012 Pearson Education, Inc. All rights reserved. McDonald's Expectations Employee Responsibilities : To perform to the highest standards set by the company, employees must treat fellow workers, supervisors and customers with respect. An employee cannot bother anyone or threaten them. offensive behavior is not allowed. Employees cannot insult others with words or actions. Employees must practice safety at all times to ensure not only his well-being but that of others. Alcohol or illegal drugs are forbidden.

Copyright © 2012 Pearson Education, Inc. All rights reserved. McDonald's Expectations Responsibility to the Company: During training, employees learn that they cannot use any company assets for personal reasons. Computers should not be used for personal s or for accessing illegal or inappropriate material. McDonald's owns not just the computers but the information entered into them, and is entitled to investigate their contents.