Purpose_of_Code_of_Ethics

PURPOSE OF CODE OF ETHICS Code of ethics is rules or standards which govern the conduct of employees. Why do we need to govern staffs and workers behaviors and conduct' First, long term growth and optimum profit can be achieved if all employees can understood and obligated on the code of ethics. As the staffs and workers are governed according to this code, everyone will work with their best attitude in aiming to achieve the goal of organization. Besides that, code of ethics can function as expected norms of practice within an organization which are clearly defined expectations for members of the organization including directors and managers. The operational and integrity risks in the workplace of the organization can be minimized as there are specific and standards code in handling these kind of situation. As the risks are minimized, productivity of the company increases and creates a higher profit margin. This is the reason why code of ethics must be established for each company as it is also the crucial element in the foundation of a profession. Another hidden purpose that can be achieved if the all member and employees of the company abide by the code of ethics is that a reputation can be build within the field of company. Potential clients acknowledge the values uphold by the employees of particular company as all of them adhere to code of ethics of. Clients will choose to work with the company rather than other companies in the same field. As for the employees, code of ethics is vital for them as it can be a mean of communication between the board of directors and employees. The function of the code of ethics is to communicate to the employees exactly what characteristics are important to the organization or company and leave little room for personal interpretation when unacceptable behaviors are exhibited by the member of organization. Discipline of abiding the law can be instilled to the employees. Other than that, purpose of code of ethics is to promote high standards of professional conduct and values among employees. Nowadays, clients preferably choose to cooperate with company with highly professional employees. Code of ethics is also important to help people stay more focused on what the right course of action to take in common situation. However, it is also function as guidelines for employees to identify potential conflicts of interest and breaches of trust. Another purpose of code of ethics is to ensure that employees do not place themselves or permit themselves to be placed in a position which would induce a conflict. As these guiding principles in the everyday management of company are obeyed, it can bring positive to the surrounding society of the company. The function of code of ethics also include; to uphold the spirit of responsibility and social responsibility in line with rules, regulations and guidelines for administrating a company. Another specific purpose for the company that we have interviewed is that the code of ethics helps employees to spread and promote the positive and Islamic values in the Malaysia society. According to the Institute of Business, the objective of code of ethics is ‘to consolidate and strengthen a culture of integrity and openness, so as to facilitate a sustainable business’. With integrity a company builds its reputation, while becoming profitable.