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Explain the term code of ethics - Leaving Cert Business - Question B - 2017
Question B
Explain the term code of ethics. Outline the benefits for a business of introducing a code of ethics.
Worked Solution & Example Answer:Explain the term code of ethics - Leaving Cert Business - Question B - 2017
Step 1
Explain the term code of ethics.
Answer
A code of ethics is a formal written statement provided by a business that outlines the expected moral behaviors within the organization. It serves as a guideline for employees on how to conduct themselves, detailing the values and principles that the company stands for, such as fairness, honesty, and respect. This document establishes a framework for ethical decision-making and ensures that the company operates in alignment with its values in all business contexts.
Step 2
Outline the benefits for a business of introducing a code of ethics.
Answer
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Decision-Making: A code of ethics offers a foundation for decision-making that considers both internal values and external stakeholder perceptions. This assists employees in navigating difficult decisions, especially in complex situations where moral implications arise.
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Day-to-Day Decisions: It clarifies expectations and guidelines for day-to-day operations, helping employees resolve customer complaints effectively and in alignment with the company's ethical standards.
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Business Reputation/Good Brand Image: By displaying the code of ethics, businesses can enhance their reputation in the marketplace. Consumer trust is bolstered when ethical guidelines are evident, which may result in attracting more clients and job seekers.
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Encouragement of Whistle Blowing: A solid code may establish safe channels for reporting unethical behavior, thereby fostering an environment where ethical concerns can be raised and addressed without fear of reprisal.
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Encouragement of Ethical Behavior: It promotes a culture of integrity among employees at all levels, reducing the likelihood of ethical breaches and fraud.
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Clearly Defined Offences: The document specifies unacceptable behaviors, making it easier to identify and prevent misconduct by establishing clear expectations.
Challenges: Implementing a code of ethics may encounter resistance based on organizational culture, necessitating continuous training and updates. A culture that is dismissive of ethics may challenge implementation efforts, while enforcement can prove difficult if not taken seriously by senior management.