M1 Unit 4

Improved Essays
Unit 4
Question 2: What is an ethics code? What methods do firms use to monitor employees and ensure their compliance with ethics codes? An ethics code is a set of doctrines and rules that govern the conduct of employees in business and interpersonal dealings and are designed to help professionals conduct business with scrupulousness and honesty (Cressy & Moore, 1983). Ethics codes provide the foundation and standards for which employees should abide by in order to ensure just and appropriate conduct while dealing with internal and external stakeholders. Organizations use communication, awareness promotion, preparation and instruction, ethics declarations, and pledges to inform and maintain ethics benchmarks for personnel. Before being able
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To monitor employees, organizations will commonly rely on a combination of interventions. This may include policies and protocols developed within the company or laws and regulations already put in place. The Sarbanes-Oxley Act of 2002 (SOX) is meant to hold chief executive officers and chief financial officers responsible for financial misconduct conducted by their companies works an extra incentive to prevent fraud in companies and holds senior executives accountable for misconduct (Franzel, 2014). Because of such a directive, many organizations and their executives will make certain that their financial documents are correct and in order. They will stress the importance of genuine and valid financial documentation, not just as a way to prevent facing litigation from violating SOX, but also as a means to continue to foster trust with stakeholders and investors. Other companies count on employees to hold their fellow employees responsible for their behavior inside and out of the work. Employees who do come forward to report unethical conduct and violations of ethics codes can maintain anonymity through discrete avenues such as designated employee hotlines (Prokopenko, Zieba, & Olma,

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