Pros and cons of an ethics code

The use of a code of ethics in promoting ethical cultures in organisations is really a common phenomenon though observers have always questioned whether the company code of ethics really works as envisaged.
A code of ethics can be defined as a set of company values and beliefs that is intended to guide management and employees in making ethical decisions in the workplace.

The ethics code addresses a variety of issues in the organisation that include the work environment, gender relations, employee-management relationships, conflict of interest issues, financial practices, etc.
The term code of ethics has been interchanged with such other terms like code of conduct, code of business standards, code of business practices, etc.

In Zimbabwe, the ethics environment of organisations is generally managed through the code of conduct, which is a compliance issue under the Labour Relations Act.
In trying to differentiate between the code of conduct and the code of ethics, Craig Nordland defines a code of conduct as specifying actions in the workplace, and

the code of ethics as providing general guidelines to decisions about those actions.

A clearer understanding of the difference between the two would probably be to view the code of conduct as addressing minimum standards of conduct as required by law.
A code of ethics, on the other hand, goes beyond the legislative expectations and those minimums, to invoke a spirit of self-regulation in the organisation to guide employees towards developing ethical workplace behaviour.

Apparently it remains the prerogative of the organisation concerned to decide whether to separate the code of ethics from code of conduct or to combine them into a one unitary code depending on the organisation’s operations and business strategies. 
A good code of ethics must not only communicate the company values and beliefs, it should also motivate employees giving them pride in working for a company with clearly articulated values of business conduct and ethical behaviour.

Research has, however, shown that for an ethics code to be effective, it must be used as part of a comprehensive corporate ethics programme that includes infrastructure such as the ethics office, ethics reward and sanctioning, and periodical business ethics training for staff. 
Implementing the code as part of a comprehensive ethics programme ensures that the code becomes real in the eyes of employees.

It also ensures that it is not a once-off event that remains a written expression destined for staff office drawers without it ever shaping their behaviour.
Implementing the code as part of the comprehensive ethics programme will also ensure that it is not accompanied by a euphoric belief that once the code has been crafted and distributed to staff, staff will simply join hands to practice ethical business behaviour.

The crafting process of the ethics code should involve employees so that there is a total buy-in and for the employee to be willing to abide by it. 
The tone and the style in which the code is written and communicated should be such that it will easily resonate with employees’ expectations.  The code should be

written in simple and plain language.

Management should understand that a code does not provide the answer to every difficult situation in the organisation neither should it be viewed as a substitute for individual judgement. The code should be acknowledged for what it is simply a guide to ethical decision-making in situations of ethical dilemmas and complex ethical decision-making.

The ethics code should contribute towards the creation of an ethical culture that encourages meaningful and thoughtful inquiry about complex ethical issues in the workplace, which should ultimately bolster organisational performance.

  • Bradwell Mhonderwa is an Ethics Coach and Trainer with the Business Ethics Centre. Send feedback to [email protected],or visit www.businessethicscentre.co.zw, or call 0772 913 875.

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