Standardized Ethics Policies, Research Paper Example

Introduction

This In general terms the concept of ethics relates to how we conduct ourselves from a moralistic, obligatory and virtuous standpoint. Whereas personal ethics are more in keeping with our personal values and commitments to others, professional ethics tends to be more holistic by nature and relates to those standards we uphold in our professional lives. In certain professions these can be very serious and have life threatening consequences i.e. Doctors, Lawyers, Bankers, etc. This paper identifies three ethical standards that might be incorporated into the ECG Ethics Code of Conduct Document.

Principles of ethical conduct

This section relates to those principles of ethical conduct that are deemed to cover all of the officers and employees of the company. In this case, reference is made to the Principles for Ethical Conduct as defined by S101, S102 within the Office of the United States Government Ethics (Office of Government Ethics, 1990).

• Employees must not hold personal financial interests that may be in conflict with the interests of the organization
• Employees have a duty of care and loyalty to the organization and must not willingly prejudice or put the company in harm’s way
• Employees must not solicit or accept gifts or such other bribes or inducements in performance of their duties with the company
• All employees shall be both honest and diligent in the performance of their duties
• Employees should be impartial in their business dealings, on behalf of the company, and not offer unfair advantages or preferential treatments to individuals or other organizations
• Employees shall respect company property and assets and agree not to use these for any unauthorised activities
• Employees shall not engage in any outside activities that may conflict with or compromise their position in the organization
• Employees will carry out their roles as good citizens and abide by the law whilst engaged with the company.
• Employees are expected to abide with laws and regulations that provide for equal opportunities at work, and respect such considerations as racial tolerance, gender considerations, religious freedom, origin and handicap
• Employees should familiarise themselves with the ethical policies and code of conduct of the firm and ensure that they make every effort to abide by these policies and refrain from committing any illegal acts. (Krogstad, J.L. 1978)

Delegation of authority

This section relates to the provision in S401 (Office of Government Ethics, 1990); that particularly deals with how authority may be delegated in the organization

• Directors and Executives may delegate such activities that may assist the operational running of the organization. They may not however delegate accountability for the duties that fall within their office.
• No external forces may be empowered to act on behalf of the company or make decisions on behalf of the company
• All Management positions in the Organization will receive the approval of the Board of Directors; the CEO will have the deciding vote.
• No individual shall be discriminated in the recruitment process. The firm has an equal opportunities policy

Financials, securities and share ownership

Specific provision of code of conduct for all Directors and Employees in terms of share ownership and holding of securities in other firms. (Sarfin, L.S. 2010)

• No person shall carry securities based upon borrowed funds or selling of shorts
• No person shall be involved in selling options, futures or that of options on futures or that of group securities
• No person shall hold an interest with a broker or an investment advisor that may act in conflict or contrary to the companies interests
• No Director or Officer should act outside of the firms Statement of Standard Accounting Practice as defined by the firms Auditors. There is a high level of compliance associated with this policy
• Every person in the firm has a duty to report any serious breaches in the organisation ethical policies. This covers such items as suspected fraud, criminal behaviour, breach of professional or accounting standards, any dealing with external authorities that may act in a prejudicial way to the company. All matters should be reported to the Chairman of the Ethics Review Board for subsequent investigation

References

Jack L. Krogstad, J. C. (1978). Moral principles for ethical conduct. Austin: University of Texas.

Office of Government Ethics. (1990, 10 7). Principles of ethical conduct for government officers and employees. Retrieved 8 31, 2011, from Office of Government Ethics: http://www.usoge.gov/laws_regs/exec_orders/eo12731.aspx

Sarfin, R. L. (2010, 12 1). Ethical Standards in a Financial Statement. Retrieved 3 31, 2011, from ehow: http://www.ehow.com/list_7428290_ethical-standards-financial-statement.html