Page 222 - SBL Integrated Workbook STUDENT 2018

Chapter 17

Corporate code of ethics

Corporate ethics relates to the application of ethical values to business
behaviour.

 It encompasses many areas ranging from board strategies to how
companies negotiate with their suppliers.

 It goes beyond legal requirements and is to some extent therefore
discretionary.

 Many companies provide details of their ethical approach in a
corporate and social responsibility (CSR) report.

3.1 Key areas included in a code of corporate ethics

 Purpose and value of business – reason for organisation’s existence.

 Customer relations – responsibility to produce quality goods/service at
reasonable prices. To develop customer faith.

 Shareholders – expect an appropriate and proper return on investment.

 Employees – how the business relates to its employees.

 Suppliers – co-operate with suppliers to maintain and improve quality of inputs.

 Society – social and corporate responsibility for the society in which the
organisation is located.

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