Code Of Ethics And Ethical Behavior Essay

960 Words Oct 27th, 2014 4 Pages
Introduction A "code of ethics" is developed by the organization that sets the trends and guidelines for ethical behavior within the organization. This defines the "principles" of the organizations that proposes the rules and laws of the organization. It "consists of general statements, sometimes altruistic or inspirational, that serve as principles and the basis for rules of conduct" (Ferrell, Fraedrich, & Ferrell, 2013, p.223). It is also a "statement of the values adopted by the company, its employees and its directors" which "sets the official tone at the top regarding expected behavior" (Boudreaux & Steiner, 2005, p.3.) The code of ethics is the "company 's written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day" (Ghillyer, 2008, p.24). "Typically, ethical codes are drawn around a set of very broad principles that provide a set of ideals to which the members of the profession should aspire" (Falk, 1995, p.110). These code of ethics promote an environment of ethical behavior, and defines the measures that is required to remain a compliant organization. In contrast, it also defines unethical behavior and the processes that takes place in the event of the occurrence of an unethical behavior. These processes defined in the code of ethics will determine the types of actions that will take place. These decisions may include multiple parties to institute a range from corrective…

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