1 Ethical Behaviour It shows employees what ethical behaviour is expected of them in the workplace. This can prevent unethical decisions being made.
2 Marketing Businesses with a code of ethics can use this in their marketing material. This can increase consumer awareness of the ethical beliefs of the firm and may increase sales and profits.
3 Management Time Employees are empowered to make decisions on behalf of the business in line with its code of ethics.
CODE OF ETHICS IN THE WORKPLACE
Challenges
1 Decreased Productivity Time and resources must be allocated by the business to develop and update the code of ethics.
2 Slow Decision-making Employees may be afraid to make decisions in case they are judged to have acted unethically. This can result in missed business opportunities.
3 Poor Industrial Relations Employees may feel that the business has introduced a code of ethics because it does not trust them to make ethical decisions.
SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR), ensures that businesses take into account the impact of their decisions on stakeholders.
Social Responsibility Towards Stakeholders 1 Investors 2 Employees 3 Consumers 4 Suppliers 5 Government 6 Local Community 1 Investors The business provides honest and transparent financial information.
It does not pay excessive salaries and bonuses to senior management.
It rewards investors with a reasonable return when the business is profitable.
2 Employees The business pays a fair wage based on the work performed.
It provides healthy and safe working conditions.
It makes it clear that bullying and discrimination will not be tolerated in the workplace.
3 Consumers The business provides high-quality goods to consumers at a reasonable price.
It manufactures products that are safe for consumers to use.
It deals with complaints quickly and fairly.
4 Suppliers The business pays a fair price for goods received from suppliers.
It pays its suppliers in full and on time.
It avoids using suppliers that pollute the environment or exploit workers.
5 Government The business pays all taxes in full and on time.
It complies with Irish laws.
It uses grants received from government agencies as intended.
