Essay on A Corporate Code of Ethics is Not Enough

After news of the scandal of Enron, one of the hottest items on e-Bay was a 64-page copy of Enron’s corporate code of ethics. One seller/former employee proclaimed it had â€Å"never been opened.† In the forward Kenneth L. Lay, CEO of Enron stated, â€Å"We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected (Enron 2).† For a company with such an extensive code of ethics and a CEO who seemed to want the company to be respected for that, there are still so many unanswered questions of what exactly went wrong. I believe that simply having a solid and thorough code of ethics alone does not prevent a company from acting unethically when given the right opportunity. Investors and†¦show more content†¦It can include the rules for governing the company in cases of employees being caught lying, cheating, or stealing. In creating a code of ethics, several questions should be asked. What is the purpose of the new code? What are the needs and values of the organization it is being created for? Who should be involved in creating this code? How is the code intended to be implemented? How and when will the code be reviewed and revised? The process of created a solid code of ethics matters just as much as the final product. The company’s code of ethics must also make sense to its employees. The code must be written in a practical and understandable manner. It should provide clear action statements that indicate what should and should not be done. The code should be clearly integrated with the company’s mission and vision. It should be apparent to the employees how following the code of ethics will aid in accomplishing the company’s vision and the employees must see a tie that following the code aids in their personal success within the company (Hawkins 1). Management Involvement Having a company code of ethics alone simply is not enough. As the latest news has show, Enron had a very extensive code of ethics that went ignored. A tone must be set by senior management on a daily basis. If an employee sees a member of management padding an expense report, then they feelShow MoreRelatedEthical Ethics Of An Ethical Corporation Is Not An Oxymoron1645 Words   |  7 Pagestowards ethics in today’s workplace is an important issue; recent headlines show consequences of unethical behavior on both companies and employees. Contained within the basic code of ethics in the workplace are words like, trustworthiness, respect, responsibility, fairness, (Chatov, 1980). Consider questions like, is it ethical to take office supplies from work for home use, or is it ethical to use company time for personal business? What is ethical behavior? The meaning of a code ethics in theRead MoreThe Integration Of Law And Ethics945 Words   |  4 PagesAs the subject title indicates, Substantive ethics is about the integration of law and ethics in corporate ethics programs. The author of this article gives numerous examples of why integration of law and ethics is needed. There are numerous areas of concern, such as dishonest corporate dealings, global human rights, tort lawsuits, and questionable executive salaries (Blodgett, 2012). There is a view that laws are rules meant to be followed and not necessarily understood for its ethical value. ThisRead Morecorporate governance1590 Words   |  7 PagesSummary: Corporate governance is an essential part of modern company operations and management , it relates to business ethics, code of conduct and system to manage a company. However, there are many corporate scandals due to the failure of corporate governance. This report analyzes the corporate governance from multiple aspects. It is through the understanding the relationship between corporate governance and business ethics, evaluating the ASX principles as a guidelines to corporate governanceRead MoreThe Sarbanes Oxley Act ( Sox )1202 Words   |  5 Pagesof the opportunities for cultivating organizational ethics by clearly outlining the code of ethics. This included the raise of truthful and strong ethical behavior. SOX moreover, demands that corporate organizations to release codes applicable to the senior financial officer. Indorsing whistle blowing in the event of ethical misconduct is encouraged (Kessel, 2011). SOX was signed by President George Bush on July 30, 2002. Important corporate catastrophes had activated intense publicity and mediaRead MoreBusiness Ethics And Social Responsibility879 Words   |  4 PagesBusiness Ethics and Social Responsibility During this short summer class, I have understood more than I ever could have done before. Not only because the study of ethics is crucial, but also because being socially responsible is part of being ethical. Among the most important assignments required from this course are: Journals, discussion boards, social project, and the lectures. However, the first group collaboration was our own code of ethics; from there, students were required to follow it asRead MoreThe Role Of External Auditing On Promoting Good Corporate Governance Essay1646 Words   |  7 PagesThe purpose of this paper is to highlight the role of external auditing in promoting good corporate governance. The role of auditors has been emphasized after the pass of the Sarbanes-Oxley Act as a response to the accounting scandal of Enron. Even though auditors are hired and paid by the company, their role is not to represent or act in favor of the company, but to watch and investigate the company’s financials to pro tect the public from any material misstatements that can affect their decisionsRead MoreTime Frame And This Will Test The Hypotheses Across Time1239 Words   |  5 Pages 2005: 105): 1. The company clearly communicates its goals and strategies to me? 2. My responsibilities are clear. 3. I feel motivated to see the company succeed. 4. I received enough employee training to feel connected to the company’s mission. 5. Do you feel that employees are recognized as individuals? Dress codes are conceptualized as a factor that creates a safe, and fair environment for employees to do their jobs. To measure this independent variable, a composite measure will be used toRead MoreAn Analysis of the Invesco Corporate Ethics Statement and Corporate Social Responsibility Statement1149 Words   |  5 PagesAnalysis Of The Invesco Corporate Ethics Statement And Corporate Social Responsibility Statement Introduction Invesco (NYSE: IVZ) is one of the worlds leading global investment companies with a diversified portfolio of institutional, retail and high net-work clients that form the foundation of their business model. As of the close of their latest fiscal financial reporting period of March 31, 2013, Invesco has $729.3B in assets under management (AUM), earning an adjusted operating income ofRead MoreManaging Human Resources1816 Words   |  7 Pagesproducts will be discovered. Social responsibility in my Decision-making Process The company needs to demonstrate a good corporate citizenship in the production of good and service. Part of the company social responsibility is to enhance the health and safety of its customers. By producing high quality goods that are free of defects, the company is demonstrating its social corporate responsibility. With regard to my decision, the company needs to protect health and safety of its customers especiallyRead MoreCorporate Ethics Essay1520 Words   |  7 Pages The board of directors is also highly influential to a corporation and should therefore also be held accountable for supporting a corporation’s ethical code of conduct. The board of directors is responsible for looking out for the best interests of shareholders (Cross Miller, 2012). The board of directors was designed to monitor executives, however in practice this is not always the case (Cross Miller). Obviously this is monitoring is a necessary duty. A proposed change to ensure that the