Importance of The Code of Ethics

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This Code of Ethics

defines the company's values and business principles, and compliance with the company operating rules and regulations. The Codes of Ethics are clearly outlined to act as guidelines for the employees to meet their expected roles and social responsibilities.

Company's Code of Ethics

Compliance Codes

Compliance with the National Laws:

All employees must adhere to the legal requirements, regulations and these ethics. Employees found engaging in criminal acts inside and outside the organization will immediately be dismissed.

Employee Compliance:

All works must comply with the company's laws, regulations and uphold themselves with the highest standards of integrity. Thus, all employees should have an explicit understanding of the organization's policies that apply to their respective roles.

Non-disclosure Agreements:

The Company shall not disclose any non-public information concerning its employees' data, business operations, financial status or any development strategies.

Intellectual Property Rights:

All employees must protect and acknowledge the Company's intellectual property rights and confidential data per the bylaws.

Values and Commitment Codes

Trust and Credibility:

The organization's success is dependent on the trust and assurance that we gain from our stakeholders by adhering to the company's mission statement and objectives.


The organization shall not take part in activities that discriminate against its employees or other stakeholders.

Avoid Conflict of Interest:

All company stakeholders must not engage relationships that may impair their decision making or their job performance about the company's business activities.

Respect for Oneself and Others:

The Company is committed to cultivating an environment where everyone is treated with respect and dignity. Any acts of harassment or abuse receive harsh consequences.

Transparent and Honest Communication:

All personnel must conduct themselves in a fair and just manner. The Company's managers will cultivate a supportive environment that encourages employees to express themselves without any restrictions freely.

Social Corporate Responsibility:

All employees must comply with the environmental conservation and safety plans implemented by the organization.

Importance of the Company's Code of Ethics

The compliance codes of ethics have been stipulated to assist the employees and other company stakeholders to conduct themselves respectably while complying with the laws of the company. Furthermore, the compliance codes of ethics are meant to nurture employee commitment to the company through their actions and job performance. These ethics address employees' level of professionalism including integrity practices and courteous conduct. According to Stevens (2008) code of ethics is a transformational tool in the management of an organization as they provide guidance in difficult times. They act as primary corporate strategies that the decision-making process follows.

Values and commitment ethical codes are implemented to ensure that the organization is committed to upholding a robust ethical environment. Stevens (2008) affirms that once the codes are adopted as part of an organization's culture, both management teams and workers adhere to the codes through their words and actions. As a result, they assist in creating a strong ethical atmosphere by prioritizing the organization's strategies and policies – so the codes become a fundamental part of the organization's structure.

The Importance of the Code of Ethics from an Employer's Standpoint

Employers value the codes of ethics as it enables them to ensure that their employees comply with the organizational behavior and culture. Through this code, employers can manage their workforce while maintaining a stable organizational structure by controlling employee actions and behaviors. Kaptein and Schwartz (2008) assert that companies use codes as a means of regulating labor relations and minimize external interventions. Codes help an organization in improving its reputation while enabling the management to run the organization with minimal external regulations. Furthermore, employers can use the code of ethics to enhance the work environment, which impacts positive attitudes in employees and also contribute to effective and ethical decision making.

The Importance of the Code of Ethics from an Employee's Standpoint

Employees benefit from the code of ethics as it protects their position in an organization. The codes communicate what is expected of employees and guides their actions and behavior. Kaptein and Schwartz (2008) explain that for organizational codes to be useful, members must acknowledge their existence to influence their attitudes. Through the codes, employees are empowered to hold the management and leadership of an organization accountable for their actions. Ultimately the codes nurture a healthy communication relationship between managers and employees – debates about organizational values, behaviors, and culture involve employees in an ethical decision-making process.

Implementation of the Code of Ethics

Communication holds a significant role in the enforcement of codes. Effective execution of the code of ethics will require an active communication channel. Evans (2015) argues that the relationship between codes and communication in a company will determine the success of the codes. Thus the implementation of codes requires the right channels of communication in which all members of the organization can explicitly understand the ethical codes (Stevens, 2009). Therefore, the most effective way to implement these codes within the organization is by ensuring that they are readable, relevant and positively outlined rather than negatively (Withers and Ebrahimpour 2013). By ensuring that all employees have a clear understanding of the codes, will ensure that these codes are valid. On the other hand, poor communication will result in the ineffectiveness of the codes. This is because employees will be unaware of how they should conduct themselves and may also feel as though they cannot communicate freely within the company.


Evans, T. R. (2015). What does it mean to be an ethical CPA? Pennsylvania CPA Journal, 86(3), 66. Retrieved from:

Kaptein, M. & Schwartz, M. (2008). The effectiveness of business codes: A critical examination of existing studies and the development of an integrated research model.” Journal of Business Ethics, 77, 111-127.

Stevens, B. (2008). Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics, 78, 601-609.

Stevens, B. (2009). Corporate ethical codes as strategic documents: An analysis of success and failure. Electronic Journal of Business Ethics and Organization Studies,  Vol. 14, No. 2

Withers, B., & Ebrahimpour, M. (2013). The effects of codes of ethics on the supply chain: A comparison of LEs and SMEs. The Journal of Business and Economic Studies, 19(1), 24-40,118-119. Retrieved from:

January 19, 2024

Business Philosophy



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Company Ethics

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