Describe how the title of a company’s ethics document affects your attitude about the content?. Do you find one title more attractive than another?

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Read Consider: What’s in a Name of an Ethics Code? in Chapter 9, then answer these following questions from the text:

Describe how the title of a company’s ethics document affects your attitude about the content?. Do you find one title more attractive than another?
Describe the message that the title “code of conduct” conveys?. Does it reflect the purpose of the document to provide employee guidance on expected conduct?
Propose creative titles for ethics codes for a pharmaceutical company and a restaurant. (Gonzalez-Padron, 2015).
Identify two other company ethics documents and share the titles of their ethics documents (consider your own organization or one that you are familiar with for this question).

Chapter 9:

The ethics office is typically responsible for creating the company’s code of conduct, which forms the foundation of an ethics and compliance program. Employees of companies with a formal code of conduct report greater satisfaction with outcomes of ethical dilemmas than those working for companies without one (Adams, Taschian, & Shore, 2001). A study by Erwin (2011) found that companies with a high quality ethics code are seen as leaders in corporate citizenship, sustainability, ethical behavior, and trustworthiness.

Despite these findings, Enron’s accounting scandal and Alcoa’s corruption scandal occurred with corporate ethics codes in place, which begs the question of whether a code of conduct has an impact on ethical behavior. One European study shared the following perspective of formal corporate codes:

The head of sales at an investment bank explained, “It is very good that everyone has to read them, but as long as something is not illegal, people will do it anyway.” Ethics activities would be empty, symbolic gestures with no intention of having a practical impact. (Norberg, 2009, p. 218)

Much research in behavioral ethics looks beyond the mere existence of a code of conduct to explain ethical behavior in the workplace, recognizing that the quality of the content and familiarity with the code are key factors for creating an ethical culture (Andreoli & Lefkowitz, 2009; Kaptein, 2011; Treviño, Weaver, Gibson, & Toffler, 1999). Individual and organizational factors affect employee acceptance of a code of conduct (Andreoli & Lefkowitz, 2009). For example, familiarity with an industry code of conduct and perceptions of usefulness lessen when an uncertain business environment creates role ambiguity (Chonko, Wotruba, & Loe, 2003). Additionally, managers with a relativist ethical orientation (believing that it is impossible to make claims of right or wrong) are less likely to consider the ethics code binding than idealists (people who act on their moral ideals in all situations) (Chonko et al., 2003).

Even the title of the code can influence whether employees uphold the desired conduct of the organization (see Consider: What’s in a Name of an Ethics Code?). The title should convey the purpose of the document. A rules-based code appears punitive, with a “thou shalt not” aspect, and typically includes company standards and rules applicable to an issue area (Ethics and Compliance Officer Association Foundation, 2008). Naming the document a compliance code sends a message to the workforce that following the law is sufficient, rather than the concept of business ethics being about choice and judgment in following company values. Values-based codes like Every Day Values: The Harley Davidson’s Code of Conduct connect company values with employee behavior (Harley-Davidson, n.d.; Martens, 2012; Treviño et al., 1999).

Multinational companies need to consider the wording of the code’s title carefully as some concepts may present difficulties in translation. For example, the term ethics can have moralistic connotations in some regions, while compliance can evoke feelings of imposition of company standards (Martens, 2012). A review of the 200 largest global corporations found strong variances in the titles of codes with 36% containing the word conduct, 17% containing principles/guidelines, 9% containing ethics, 6% containing values, and 4% containing integrity (Kaptein, 2004).

Consider: What’s in a Name of an Ethics Code?

The document that summarizes the company’s ethical and legal standards can go by many names, including:

Code of conduct;
Code of ethics;
Code of business conduct;
Code of ethical and legal standards;
Ethics guide;
Code of employee conduct; or
Standards of professional and business conduct.
The title of the document can create a brand for the company’s ethics and compliance. The content becomes relevant to the workforce when the code ties the ethics and compliance program to the company’s mission or business strategy. The title can make that connection and serve as a theme throughout the document. Consider these titles for company code of conduct documents:

Setting Our Sights High (Bausch & Lomb Incorporated);
Follow the Right Road (The Auto Club Group); and
Inside the Lines (Nike).
Sources: Ethics and Compliance Officer Association Foundation, 2008, p. 58; Martens, 2012.

Questions to Consider

How does the title of a company’s ethics document affect your attitude about the content? Is one title more attractive than another?
What is the overall message that the title of the code of conduct conveys? Does it reflect the purpose of the document to provide employee guidance on expected conduct?
Propose creative titles for ethics codes for a pharmaceutical company and a restaurant.
Implementing an effective code of conduct is not a simple task. One study found that a code for equal opportunity in the hiring process limits discrimination only when enforced by management and integrated into normal practice (Petersen & Krings, 2009). Enforcement of the document requires close attention to the tone and terminology, such as phrases like “may result in disciplinary action.” The U.S. courts find that such ambiguous penalties for noncompliance negate contractual obligations to comply with a code of conduct (Kenny, 2007). The design of the document and the communication of the code play a critical role in embedding the ethical standards for conduct throughout the organization (Kaptein, 2011; Verbos, Gerard, Forshey, Harding, & Miller, 2007). The following sections outline best practices in designing a code of conduct document.

Code Content

Designing a code of conduct includes identifying the topics and tone that will resonate with the workforce, as the code’s purpose is to guide employee behavior. This is particularly important as studies have shown that employees generally have difficulty naming specific behaviors that the code requires or prohibits (Adams et al., 2001). To make the content more memorable, The Ethics and Compliance Handbook cautions against codes that are generic, bland, or legalistic (Ethics and Compliance Officer Association Foundation, 2008). In reality, there is no such thing as a generic organization. Therefore, those designing the code should tailor it to reflect the organization’s unique culture, risks, and history, which ultimately shape the ethical issues covered by the code and the manner of conveying acceptable conduct. Content may vary because of the regulatory environment for the industry or geographical region. Some content is applicable to all employees, while others may be specific to a function such as accounting or sales. The code of conduct should clearly address expectations on topics relevant to the intended audience in language that is readily understood.

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