Business Ethics and Corporate Governance, Second Edition

HOW DOES A COMPANY ESTABLISH ETHICAL STANDARDS?

It is very necessary these days for organizations to establish ethical standards so that their workers have least doubts as to what their company stands for. Most companies in advanced countries and some even in developing countries have developed their own codes of conduct which provide some ethical standards for their employees. Such codes of conduct may not help in resolving every ethical issue that arises but they help employees and executives deal with ‘ethical dilemmas by prescribing or limiting specific activities’. It should be emphasized here that it is not enough for a company to merely have the codes of ethics, but these should be effectively communicated to employees so that they are ...