HRM Essay Samples

Ethics Codes

The code of ethics is an essential part of corporate governance and business principles of an organization. For example, Unilever highlights its ethical purpose to maintain optimal level of corporate behavior and values including integrity, honesty, environmental safety, social responsibility and legal compliance towards all stakeholders such as government, community, suppliers, customers, shareholders, employees and public welfare institutions. Wal-Mart is largest US retailer that emphasizes a global ethics policy to promote fundamentals of business ethics through an organization-wide policy for decision-making, problem-solving, confidential reporting and employee education to ensure integrity and righteousness. General Motors has designed an extensive ethical code of conduct that reveals focus not only on manufacturing environmentally responsible products for customers but also highlights the importance of dialogue with stakeholders for corporate citizenship. GM’s code clearly divulges its commitment and support towards employment generation, health and education initiatives through a community centric approach. In fact, the three aforementioned MNCs have designed the extensive yet similar ethical codes that embark on CSR, honest reporting and environmental sustainability. Also, the companies claim themselves as equal opportunity employers with a positive attitude towards diversity and cultural integration. The researcher would like to argue that an ethical code must reflect genuine considerations for customers, employees and society at large. Although, the policy should not be restricted to development of consumer-friendly products but also it ensures workers’ safety and environmental degradation issues. The CSR initiatives may sound exciting but the corporate citizenship contributions should be in proportion of financial strength corporate size, and business success. Ethical code should also include protection of consumer by avoiding persuasive advertising tactics that create artificial needs that make life financially difficult for customer in disguise of making life easier.