Role Of Code Of Ethics In An Organization

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2. Establishment of a Code of conduct
Organizations run on a set of rules. The rules are different from one organization to another. Nevertheless, there are universal codes of ethics that govern organizations in one sector or industry. These code of ethics are developed over a long time and take into consideration many aspects of that govern the industry in context.
It has been discovered that many leaders from different organizations across the world base their decisions on the code of ethics more than on the law (Raymond, 2011). Ethics and law are different channels of governing organizations that are not alike, but serve the same purpose. Their goal is to get things done. However, in many cases ethics supersedes the law because the law
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The element of consistency in making ethical decisions is also accentuated by the existence of such a code because what leaders need to do when in a fix is just to check what the code stipulates regarding the same thing. This hastens the processes and saves time that can be used in other productive activities. In addition to this, organizations and institutions are structures that are meant to outlive people and exist as independent entities. Any incumbent leadership will one day be out of that leadership and another team will be in place. As independent entities, organizations have values and goals it aims to accomplish and these values lives on from one generation to another. Change of leadership has the potential of changing the values the founders of an organization established (Raymond, 2011). However, with the code of ethics in place it is possible to perpetuate the company’s values from one generation to another. This is also a channel through which a culture of ethical decision making is developed in an …show more content…
Making decisions from the perspective of being fair implies that a leader takes the role of facilitation. Under this setting nobody aims at winning but rather of making sure that the other party is at peace with the current decision. However, on the extreme ends, decisions can be imposed on people as long as the people receiving the impact of such decisions are ok.
Starbucks coffee is an organization that has very elaborate working structures on how the concept of fair trade is used in making ethical decisions (Macdonald, 2007). This is, however, different from the code of ethics. Starbucks buys coffee from farmers at the fairest market rates possible (Macdonald, 2007). Though this acts as a motivation for the farmers to grow quality coffee, the end result is that the top management makes the choice of buying coffee at that price. This compensates the farmers sufficiently and also helps the company get quality coffee from farmers.
Therefore, establishing structures of fair trade can be exemplary channels through which leaders make decisions in a more ethical manner. Fairness, in this context, acts as the guiding principle and where there is fairness ethics are

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