Code of Ethics
XXX Company is a company whose primary aim is to provide high-quality motors for the industry. The company’s mission statement promises proper services and innovative solutions. Its aim is also focused on improving the well-being of the community. Its code of ethics mirrors its purpose in the provision of quality products efficiently and without fail. In addition, the code of ethics helps the employees to operate within the institutional parameters that make them able to serve the company, the families of the employees, and the community as a whole. However, the company holds it that a good statement of purpose and very high ethical codes are not enough for the stakeholders. It is very critical that the company act on it to ensure that whatever is written or promised in the moral code of conduct can be delivered.
In its principles, the Company maintains that there must be innovation and excellence in the profession, respect for employees and the customers, fairness, accountability and honesty in all the business deals and compliance and commitment to all the ethics and its compliance. Its ethical system is strictly duty-driven, and the employees have the duty in the delivering of all the promises in the code of ethics that define the Company’s principle of responsibility (Carrol & Buchholtz, 2010).
Purpose of the code
The XXX Company’s code of business conduct and ethics will set up the principles that will guide the employees in all their undertakings in the company in relation to the way they interact with one another, vendors, and customers. The principles laid out in the code for XXX Company will apply to all the employees of the company and its affiliates. It may not cover all the issues that may arise; however, the code will outline the basic principles to guide all employees regarding the business conduct (Ferrell, Ferell, & Fraedrich, 2011). In addition to the principles in this code of conduct, the employees for will be subject to the specific policies and procedures in relation to the specific business practices, conduct, and behaviour.
The mission for XXX Company is to provide value for the stakeholders through continuous improvement of services, investment in innovative solutions and information-based strategies. The company also aims at promoting a culture of excellence, teamwork, and integrity. The Company is committed to delivering superior operating and financial results in the market while adhering to the highest standards of business conduct. In the Company, the rules of operation provide the basis for commitment to which it serves the entirety of its stakeholders.
Competition and fair dealing
The organization seeks to outperform their competitors through honest and fair dealings by seeking competitive advantages through superior performance. The corporation will not indulge in any illegal or unethical business practices. Unethical possession and use of competitors’ proprietary information, possessing of trade secret information obtained through dubious means, or induction of such disclosures by present or past employees will not be tolerated in the institution.
Every employee is expected to respect the rights of all parties involved including the privacy and rights of the company’s competitors, vendors, each other and the customers. Employees seen to take advantage of anyone through concealment, and other illegal means will be apprehended. Criminal investigations may also be instituted against the guilty individual.
The company and its employees will strictly follow fair competition and anti-competitive business practices. Instances that create the potential to unlawful anti-competitive conduct should be avoided at all costs.
XXX Company promotes compliance with internal policies as well as related industry and government regulations. The Company expects that all the employees respect, understand, and comply with the rules set up. Internal policies and procedures will be communicated to members of staff on the Company’s website. Strict adherence to the said guiding principles is mandatory if the employee wishes to continue working in the company.
In addition, XXX Company will at all-time respect the regulations and laws of every jurisdiction in which it is meant to operate. Employees are not expected to learn all the laws by heart but knowledge of the ones that directly influence their scope of duties is essential. When in doubt about certain laws, the employee should seek the counsel of his direct superior. Some regulations and laws may be difficult to interpret thus the importance of having a functioning legal department.
Conflicts of interest
Conflicts of interest may arise between an employee’s obligation to his job and personal matters. A conflict of interest will arise when a person’s private interests appear to conflict with the interests of the company. Legitimate interests of the company should be pursued first unless pursuance leads to egregious harm on the employee. Employees should not pursue interests that could result in a direct loss for the company.
The corporation advises the employees to be moderate and discrete as well as to utilize good judgement when accepting or giving gifts or entertainment in the company. XXX Company requires that one disclose his/her immediate manager of any family relationships. Refusal to disclose such pertinent information will result in a disciplinary action including but not limited to termination of employment. An employee related to a job applicant must not engage in any practices that may affect the hiring or the placement of the applicant.
Protection of company assets
Every employee of XXX Company is entitled to safeguarding its intellectual and tangible assets. Any misappropriation of the Company’s assets is a breach of contract and fraudulent. Any instance of theft or fraud should be reported so that investigations into the incident can be commenced. Employees are entitled to protect the intellectual property of the company like trade secrets, trademarks, copyrights, and patents. Any unauthorized distribution or use of this information is a violation of the company’s code of ethics and the parties involved will face criminal investigations.
The company’s books of accounts must be reasonably stored to avoid theft or ruin. The books of accounts should also reflect the Company’s transactions and conform to internal financial controls as well as legal requirements (Frankel, 2012). Records should be destroyed or retained according to the manner prescribed by the organization. The company’s Legal Department is the only entity within the organization mandated to handle litigation matters or co-operate with government investigations.
Since the entity is a public corporation, it must ensure that it delivers its financial filings to the Securities and Exchange Commission on a prompt basis. There will be instances when some employees are called upon to speak on the fairness, completeness, and simplicity of the financial filings that will be made available to the company. The company holds the employees in these positions very responsible for the success of the enterprise.
Coverage of the code
The code applies to the directors, officers, and employees including the chair and chief executive officer, the executive vice president and chief financial officer, the controller and chief accounting officer, and any other personnel performing similar functions. In addition, it applies to all the staffs, subsidiaries of the company, and divisions in which the company directly or indirectly owns more than 50% of the equity interest or which the company otherwise controls. It covers all the representatives of the company when they are acting on behalf of the company. Everyone is responsible for following and adhering to the code. The company has committed all their employees to doing the right thing to achieve business objectives through personal responsibility and accountability.
The success of the Company depends on the relationship that lies outside and inside the Company. Engagement with the stakeholders is led by the core values and continues to evolve as the company expands its global sustainability effort. The stakeholders include customers, dealers, employees, investors, analysts, suppliers, communities of operation, government, non-governmental organizations. All the stakeholders are engaged in various ways to ensure that there is the facilitation of a meaningful dialogue (Kaptein, 2013).
Amendments to the code
The executive team or legal department will make any amendments or modifications. The legal department or the management are the only parties allowed to alter this code of ethics. Principles in the code of ethics may not cover all the issues that arise; however, the code ensures that there is a basic principle to guide all the employees regarding their business conduct. In addition to this code, the management in conjunction with the legal team will continue setting rules relating to business transactions and behaviour when deemed necessary. Therefore, there will be an ever-changing need to have amendments to the code of ethics.
Ensuring that the code of ethics is in fact ethical will be the prerogative of different entities within the company. The entities include the HR Department and the Disclosure Committee among others. All employees are expected to adhere to the set internal procedures and policies contained in the code of ethics. The company will humanely pursue enforcement of the code. Persons reporting questionable behaviour will be accorded fair and just treatment. The corporation has also instituted clear and objective standards for compliance, and a fair process through violations can be identified and dealt with appropriately. Through the five bodies, ethical behaviour will be enforced.
The Disclosure Committee will review of all the complaints of non-compliance with the code of ethics. The committee will also conduct investigations on possible violations. The team will also be expected to periodically provide reports and evaluation of the effectiveness of the program to the executive team. The human resource department and legal department is responsible for the monitoring of the code of ethics and its applications as well as its communication to all relevant stakeholders, either through the company’s website and other relevant means.
The nature, severity, and wilfulness of the violation will determine the repercussions for not meeting the standards of the code of ethics. Enforcement consequences may include warnings for actions that do not cause any material harm to the company. In response to serious violations, the company might seek legal redress to recover damages incurred by the company or report illegal conduct to appropriate government agencies (Kaptein & Wempe, 2010).
So far, the code of ethics puts an emphasis on the employees to act by the mission statement of the company. However, there are many clues that can be added to the code to ensure that there is an enhancement in the service-driven mission of the company. The employees must be at all times being fully dedicated to the people they work for and the fellow colleagues. Through this, the organization will be fully service oriented and will lead to a positive organizational culture. Fully dedicated staffs are the key to making the organization very efficient in its operations.
The mission statement in XXX Company promises to provide quality and excellent motors for the industry. This is only possible through an effective, ethical code of conduct. Through the analysis above, the code has provided the employees of the company and its management within which they can carry out their functions as stated in the mission of the company. On the other hand, the employees are expected to serve selflessly to the satisfaction of the relevant stakeholders.
XXX Company strives to act with institutional and personal integrity in the workplace and the whole community as a unit. There is a need for everyone involved to understand and apply the values and policies to ensure that there is proper competition and winning in the end. Any employee who breaks any ethical code is liable for punishment by the clause in the code. Employees are also responsible for civil and criminal penalties if the law has been violated.
Carrol, A. B., & Buchholtz, A. K. (2010). Business and society: Ethics, sustainability, and stakeholder management. Australia: South- Western, Cengage learning .
Ferrell, O. C., Ferell, L., & Fraedrich, J. (2011). Business ethics: Ethical decision making and cases. Cengage learning .
Frankel, M. S. (2012). Professional codes: Why, how, and with what impact? . Journal of business ethics , 109-115.
Kaptein, M. (2013). Business codes of multinational firms: what do they say. Journal of business ethics , 13-31.
Kaptein, M., & Wempe, J. (2010). Twelve Gordian knots when developing an organiational code of ethics. Journal of business ethics , 853-869.