BUSINESS ETHICS

By Tavishi Ranjan

Codes are self-regulatory rules for

guiding the conduct or behavior of an
individual. What are the benefits of
self-regulations?

CODE OF CONDUCT (CC)

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Code of conduct (CC) refers to self-regulatory rules

for guiding the conduct or behavior of an individual.
Acode of conductis a set ofrulesoutlining:
the responsibilities of; or
the proper practices for
an individual, party or organization

SIGNIFICANCE OF CODE OF CONDUCT

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Code of Conduct is the standard of expected ethical

behavior for the company's management and
employees. It is about holding oneself to the highest
standards of ethical business behavior;
Typically Codes talk about expectations to:
obey the law,

conflicts of interest,
insider trading,

preserving confidential information,

bribery,

corporate opportunities,

competition and fair dealing among other things

AIMS OF SELF REGULATION

Ensure a properly functioning market

Ensure a responsible industry

Ensure a commitment to published standards

Effective action in the event of a breach

Easy and low cost to administer

BENEFITS OF SELFREGULATIONS
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They add an ethical dimension to impose ethical

standards, which go beyond those, which can be
imposed by statutory legislation.
Self-regulators are directly accountable to the
members of their group
Self-regulators are more comprehensive that official
regulations.
Embeds responsibility for compliance.