Codes of Ethics and Business

Conduct
LESSON 4
Video Analysis

 https://youtu.be/-gRLHf6ZBM4
 Watch the link above and answer the following Questions.
1. What is an Ethical Dilemma?
2. What can you learn about code of ethics?
 What Is a Code of Ethics?

 A code of ethics is a guide of principles designed to

help professionals conduct business honestly and with
integrity.
 Business ethics is the study of appropriate business
policies and practices regarding potentially
controversial subjects including corporate
governance, insider trading, bribery, discrimination,
corporate social responsibility, and fiduciary
responsibilities. The law often guides business ethics,
but at other times business ethics provide a basic
guideline that businesses can choose to follow to gain
public approval.
 Code of Business Conduct and Ethics of Ayala Corporation

 Ayala adopts as part of its basic operating principles,

the primacy of the person, shared values, and the
empowerment of people.
 The company and its employees are guided by four
core values: integrity, long-term vision, empowering
leadership, and commitment to national development.
 Ayala maintains fair dealings with its shareholders,
customers, employees, and business partners.
 On Writing Codes of Right Conduct

 Organizations both business and non-profit ones have definite expectations of how their
staff should behave. A written code of conduct is essential since it provides obvious
instructions about what staff can and cannot do.
 Externally, a code serves several important purposes:
1. Compliance – legislation mandates individuals serving on boards and organizational
leaders of public offices to implement codes or clearly explain why they have not.
2. Marketing – A code serves as a public statement of what the company promised to stand
for and its commitment to high standards and right conduct.
3. Risk mitigation – Organizations with codes of ethics can trim down the financial risks
connected with government fines for ethical wrongdoing by signifying they have made a
“ good faith effort” to avoid unlawful acts.
Inclusion in a Code of Right Conduct

 The style in which the code of conduct is written, organized and

presented will have a significant force on the extent to which
employees will comprehend the code or submit to it. The code
should be written in plain, direct language as an organization
normally plans its code to be read by employees at different levels
of responsibility and in a broad range of functional areas. The
sentence structure should be simple.
 Guidelines for writing an ethics code:

1. Be plain about the objectives that the code is planes to achieve.

2. Obtain support and ideas for the code from all levels of the organization.
3. Be conscious of the most recent developments in the laws and regulations that concern the
industry where the organization belongs.
4. Write as plainly and undoubtedly as possible. Keep away from legal terminology and clear
generalities
5. Act in response to real-life questions and situations.
6. Supply resources for additional information and guidance.
7. In all its forms, make it user-friendly since ultimately a code is a failure if it is not applied.
 The most common sections to include in a
code of right conduct are:

1. Ethical Principles – workplace behavior and respect for all people

2. Values – an honest, unbiased and unprejudiced work environment
3. Accountability – taking responsibility for own actions, ensuring appropriate use of
information, exercising diligence and duty of care obligations and avoiding conflicts of
interest.
4. Standard of conduct – complying with the job description, commitment to the organization
and proper computer, internet and email usage.
5. Standard of practice – current policies and procedures and business operational manual.
6. Disciplinary actions – complaints handling and specific penalties any violation of the code.
Essay