MBA 6301-10H-20 Unit VII Assignment

Running head: MBA 6301

MBA 6301-10H-20 Unit VII Assignment

By: Nguyen Dinh Quoc Viet
Student ID: 228598
Columbia Southern University
May 18, 2014

CODE OF ETHICS OUTLINE FOR BIDV ORGANIZATION

Summary

MBA 6301-10H-20 Unit VII Assignment

BIDV organization is constrained in conducting legal and ethical business activities throughout
Vietnam. BIDV organization is in need of update current code of ethics because of the growth of
the company and the changing workforce. BIDV is constantly improving our products, services,
and operations thus stressing the integrity of both corporate and personal role. Besides complying
with laws and regulations set by the authority, we also strive to create reputable business
judgment together with highest ethical standards of respect, honesty, fairness, and trust to our
customers. There is no chance that BIDV will sacrifice the set of ethical principles of the company
over short term advantage. The companys set standards root from employees at highest level of
personal integrity and encourage it in others.
BIDVs employees are expected to be honest and must never let personal interest come in
between customers and companys interest. They are demanded not to commit any unethical
behaviors that would bring dishonor upon themselves or the organization. Under no
circumstances should BIDVs employees accept any form of bribery, kickback or remuneration.
Any staff must prevent the occurrence of representing BIDV under any form of transaction with
other individuals or parties outside the companys affiliates. In addition, management level such as
directors must by all means avoid using the contacts available from the company to carry out
personal business activities at the expense of the company (Stanwick & Stanwick, 2009).
Moreover, they are required to take necessary steps to guarantee the companys information
safety.
Guiding principles:
Whenever it comes to companys inside information, employees must follow with several
guideline principles. First of all, if BIDV hasnt yet released the material information to public,
employees must never disclose the confidential information, unless to a special member within the
company who was assigned to require that information. Furthermore, it is obligatory for
employees not to involve in any act of purchasing the companys securities of which they have

MBA 6301-10H-20 Unit VII Assignment

information to, only after that company has publicly disclosed those information regarding the
securities and the public has had enough time to take in the material information. Additionally,
regarding the companys securities, employee shall not buy or sell the securities to a different
organization.
According to the Securities Exchange Act, employees and directors of BIDV shouldnt wrongly
interpret their qualifications. In other words, the involved individual must acknowledge that the
consequences of misusing companys internal information linking to securities trading will be
resulted in penalties and civil liabilities.
Purpose of the code:
As a part of an overall ethics policy, BIDVs code of ethics reinforces the moral principles and
commitments of the company by spelling out such purposes. First of all, this Code ensures that
unethical acts in the company and any dishonest behavior corresponding relating to business
activities within BIDV shall not be promoted at all. For that reason, the purpose of the Code is to
promote honest and ethical practices in terms of personal and professional relationships. Secondly,
set in the companys ethical environment, this Code promotes adherence and accountability of the
set of guidelines and principles. Next, the Code promotes compliance to legal laws and
regulations set by the authority regarding the business activities that the company carries out. Last
but not least, this code promotes fairness, honesty and accuracy in disclosure of the companys
reports.
Core values:
BIDV organization aims to go far beyond doing the right thing by possessing core values:
Integrity, Confidentiality, Loyalty, Legality. Not only does our organization commit strongly with
legal issues and cultural ethics, but we also protect the most valuable assets as well as ensuring
the success of our business throughout Vietnam and its region (McKinney, 2010).
Each and every employee of BIDV must resort to gathering report information from clients in an
accurate and honest manner according to the requirements of reporting. On top of that, they must
refrain from the acts of gathering intelligence information from competitors through the use of

MBA 6301-10H-20 Unit VII Assignment

illegitimate means and, certainly, they must at all times avoid exaggerating or disparaging when
comparing their services to others.
Training and education:
BIDV will provide training for the code of ethics to all employees because it will govern the
company with an aim of guaranteeing compliance to the relevant standards and guidelines before
they actually sign the code of ethics. Adequate training and education will enable a clear
understanding of the code as the disciplinary action that an individual is entitled to in case of
violation to the rules and guidelines of the code.
Definitions
For proper understanding of the BIDVs code of ethics, we provide you with term definition.
These are rules set aside in the organization with an aim of governing and regulating behaviors of
the people covered; in this case, directors, employees and officers. Ethics is derived from Ethika
- a Greek word referring to human conduct or human morals. A distinction should however be
driven between ethics and codes of conduct as well as codes of regulation. Regulations, guidelines
and procedures how the way employees in this organization carry out their activity is provided by
this code of conduct having employee rights and remedies of the guidelines violations provided
(Kaptein, 2011).
The purpose of a code of ethics in a business organization is the setting of the general principles
related an organizations belief on matters regarding the companys privacy, quality, mission, or the
entire companys environment. A companys code of ethics delineates proper procedures which
assist in the determination of whether or not the codes of ethics have been violated. In addition to
that, the code of ethics imposes remedies if violation of the codes has actually occurred. However,
the effectiveness of the imposed remedies will depend on the extent that a companys management
is willing to support the code of ethics with relevant rewards and sanctions. Violating a companys
code of ethics results in remedies such as trade based restraint on moral principles; however, this

MBA 6301-10H-20 Unit VII Assignment

only applies to private organizations. An employees code of conduct is given rise by or linked to
the companys code of ethics.
Persons covered:
This code covers from employer to director and officer in the BIDV organization or people with
similar functions within the organization. All parties are expected to conduct honest and ethical
behaviors in this code of ethics. Since this code is a condition to official employment so personal
integrity and fulfillment are required. All of the above parties have a duty of to report any minor
or major violations of the codes to the Audit committee/ Board of Directors without fear for
reappraisal or punishment due to that action.
Implementation/ Communication
It is imperative that meeting sessions be conducted for employees after the acknowledgement,
and before both parties actually sign in this code of ethics. Further training will be provided in
order to ensure that information involved in the code of ethics such as the guidelines and
principles are clearly communicated to the parties covered. Thus, covered parties can have the
opportunity to ask questions concerning areas where a certain principle or guideline wasnt clearly
understood (Chua & Rahman, 2011).
Enforcement/ Reporting
In the case of code violation, it is obligatory that the parties covered in this code of ethics report
the other party which is covered by the same code of ethics. Person who is reported to have
violated the code of ethics will be investigated by the Audit team and will meet corresponding
consequences depending on the violation rate if found guilty. No person will be punished for
reporting a case of violation. In case the reported individual discriminates against the person who
reported him, the Audit committee will decide to dismiss the discriminating individual.
People who violate the code shall be inflicted by some disciplinary actions such as demotion,
reassignment, and termination or even court case infliction.
Mission statement:

MBA 6301-10H-20 Unit VII Assignment

BIDVs code of ethics mission statement is to guarantee that a fair and legal business system is
created within the companys premise. This can be exercised by ensuring that dignity is maintained
among the covered parties when the companys services are being presented. Moreover, whenever
a business transaction is being undertaken, this code of ethics will help ensure that honesty is
maintained among the covered parties. Therefore, false, inaccurate and confusing information
being exchanged can be avoided during transactions.
Additionally, in relation to the interpretation of the code of ethics, Unions authority role is
recognized at all times under this code of ethics. Also, this code contributes to the production of
high quality business products that are somehow similar to the ones displayed in the samples by
BIDV organization. The last mission statement of this code is to offer the company standards that
help enhance the profitability of the company as well as sales.

References
Chua, F., & Rahman, A. (2011). Institutional pressures and ethical reckoning by business
corporations. Journal of Business Ethics, 98(2), 307-329.
Kaptein, M. (2011). Toward effective codes: Testing the relationship with unethical behavior.
Journal of Business Ethics, 99(2), 233-251.

MBA 6301-10H-20 Unit VII Assignment

McKinney, J., Emerson, T., & Neubert, M. (2010). The effects of ethical codes on ethical
perceptions of actions toward stakeholders. Journal of Business Ethics, 97(4), 505-516
Stanwick, P. A., & Stanwick, S. D. (2009).Understanding business ethics. Upper Saddle River,
NJ:
Prentice Hall.