The Implementation of the role of ethicscode also known as (codes of conduct or ethics policies) plays a vital partin the growth of international corporations. A corporate’s ethics code should serve as the foundation whereindividuals must make decisions based on trust, integrity, honesty andconfidence REFERENCE. According to Nieuwenhuizen and Oosthuizen (2014), businessethics are vital for corporations as they define the values and morals of anorganisation.
Currently, the importance of codes of conduct has significantlyrisen due to globalization of the economy which has contributed to a steady developmentof competition between businesses. Well communicated and formal codes of conduct are aimed to ethically shape anindividual’s behaviour by outlining “the goals, values and the type of performancewanted and anticipated from all shareholders and employees from an ethicalpoint of view within an organisation” (Crane and Matten 2015). For the ethical policies to beeffective they must be successfully developed and applied carefully. This paper will analyse how ethical codes shape the ethicalbehaviour and experiences of individuals involved within specific companies andexamine such standards of behaviour by researching the company’s activities.Furthermore, this paper will consider corporate (managers, workers,board etc) ethics and moralsas actors, who can actin a wrong or right manner although “ethics codes” specifies the standard ofethical behaviour to which every individual aspires to. How codes of conduct shape ethical behaviourof individuals in an organisation:According to Crane and Matten (2015), implementing codes ofconduct is a key skill for managing business ethics, as it enables managers todevelop and adopt appropriate rules to create realistic modes of behaviour whichapplies to everyone, from the board of directors to the newest recruit.
An employee’s behaviour is highly influenced by suchpolicies as a study carried out by Mark John Somers (2001) showshow such policies shape ethical behaviour, by developing codes of conduct that define theirexpectations. The behaviour of employees depends on how effective the ethical policies are, and theindividual’s ability to interpret and apply the policies to a variety ofsituations REFERENCE.Applying ethics code in business to changeunethical behaviour has become one of the most challenging issues. An effectiveprogram of ethics requires involvement and commitment from employees at alllevels.
The constituents should ensure commitment towards ethical behaviour atall levels.The Primary aim of McDonalds ethics code is to provide asustainable work environment, respect all its employees, help localcommunities, provide clean, hygienic restaurants and a safe atmosphere for allcustomers REFERENCE. Codes of conduct is a crucial part of thecorporation’s ethical framework where policies are implemented to guide allmanagerial decisions, creating a system where decisions are initiated. Numerous policies and procedures are in placeto guide and promote ethical behaviour within modern organizations. Crane andMatten (2015) defines ethic codes as “a voluntary statement that commits anorganisation, industry, or profession to specific beliefs, values, and actionsand/or that set out appropriate ethical behaviour for employees” (Crane andMatten 2017, pg.
190).McDonald’s main priority is their members rights. McDonaldshas developed a strategy that allows the employees relative freedom in workingwith the firm. The implementation of the policies has given the workforce theopportunity to behave freely.
Furthermore, McDonalds wants its employees andboard members to always deal in a fair manner with customers, investors,business partners, service providers, competitors, the public and one another.The codes of conduct will ethically change the behaviour of staff members asthey would be required to always act with impartiality and professionalism toensure that the expression of personal views and convictions do not compromisethe performance of their official duties. Part of McDonalds code of conduct policy is their duty tomake sure they buy good quality food from suppliers. Implementing ethicalpolicies prevent McDonalds from making bad decisions such as purchasing goodsfrom foreign suppliers who employ child labour, pay substandard wages, or havesweatshop working conditions in their facilities.
The firm has created aculture where every worker is respected and gives every individual priority asthey believe it is the workforce who hold the key to its valued success. Makingindividuals know how important they are and valuing them has enabled McDonaldsto improve its service provision to its clientele.Showing customers that they value integrity willsignificantly shape the behaviour as they will feel reassured by the existenceof codes of ethics by believing that the firm values its integrity and operatesaccordingly when doing business. This will shape the experience and behaviourof the individuals as it requires them to think in a certain way and actaccordingly. According to Laufer and Robinson (1997), when employeeswitness managers following ethical policies it positively effects otherindividual’s behaviour to also act in accordance with the codes of conduct. Astudy showed that management accountants working in organisations withcorporate codes report less wrongdoing than respondents in organizationswithout formal codes. (Somers, 2001).
Furthermore, Scalet (2006) stated thatorganisations who had adopted codes of conduct created patterns of trustamongst employees. These studies clearly show that ethical policies encouragemanagers and to act with integrity.