Professional Comm. IV Mini Project

Unit IV Lesson 1: Clear Communication Through Codes of Conduct

Introduction

A code of conduct is sometimes referred to as a code of ethics, a code of business ethics, or even

business conduct and ethics. Throughout this unit, the term code of conduct will be used. By

whatever name, these sets of rules and standards communicate to an employee the expectations

demanded by the employer. In virtually all cases, an employee who is dismissed will have

violated one or more of these policies and standards.

Organizations communicate their expectations to employees, carefully and explicitly laying out

how their employees should conduct themselves, how they should dress for work, and how they

should use company property. These expectations are set out in a document known as the code of

conduct or something very similar. Employers use these codes of conduct to communicate the

culture of the organization to all employees. Many organizations require employees to sign the

code of conduct on the first day of employment and, in some cases, annually. Most companies

state clearly that everyone in the organization must abide by these codes of conduct and reaffirm

that commitment according to their policies.

These various codes of conduct are designed, in many cases, to protect organizations against

legal actions by their customers and/or clients.

According to the Federal Deposit Insurance Corporation (FDIC, 2005), “A corporate code of

conduct or ethics policy should be implemented to provide employees, officers, directors and

agents with specific guidelines on acceptable and unacceptable business practices” (p. 1).

This unit focuses on how an organization communicates with all of its stakeholders through its

code of conduct. Some provisions of a code of conduct are explained in detail as well as the most

common consequences of not conforming to an institution’s code of conduct.

Communicating the Organization’s Ethical Stance

Organizations must communicate that the intentions of their business practices are ethical—

relating to stated principles and values and a general sense of right and wrong, justice, and

fairness. Actions such as bribery, tax evasion, discrimination, and insider trading can ruin a

business very quickly.

Managers, supervisors, and employees have to maintain ethical communications with

stakeholders in order to earn their trust. To attain this goal, organizations establish codes of

conduct that apply to various levels of the organization. These legal documents must be signed

by all who participate in the business of the organization. For example, a board of directors may

have a code of conduct that is slightly different from the one issued to an administrative

assistant.

Most codes of conduct relate to appropriate dress, how people interact with each other at work,

and privacy issues. There are multiple principles that guide how organizations create their

specific codes of conduct. However, all stakeholders are expected to conform to the codes, and

the language of these documents must be absolutely clear on that point.

While each organization’s code of conduct is specific to that institution, there are several

provisions typically found in any organization’s code:

Specific restrictions may typically apply to the following areas:

• use of company assets and resources for personal gain, such as company cars or credit cards;

• use of company technology, including social media, for personal benefit ; • sharing company information that is not already known to the public; and • smoking in undesignated work areas.

The following behaviors are consistently prohibited in codes of conduct:

• discrimination and harassment; • use of alcohol and illegal drugs; and • giving and receiving gifts, meals, services and entertainment because they could be

perceived as an exchange for business favors.

Codes of conduct are carefully designed to protect the organization from liability. Employees

have the following responsibilities:

• comply with laws, rules, and regulations; • protect intellectual property and copyrighted materials; and • report concerns and code violations.

The codes of conduct signed by persons on the board of directors and executive officials usually

contain, among other things, that they must agree to the following statements:

• to keep confidential any company information that is not public, • not to compete with the company in business, and • not to accept gifts (bribes) from people seeking to do business with the company.

If employees know that someone is violating the code of conduct, they are obligated to report

such behavior to a manager and/or to the department or person responsible for the policy.

Some organizations also have policies against unethical conduct outside the workplace.

Employees may have to report criminal activity outside working hours to employers. For

example, if an employee is arrested, he or she may be required to report the incident and the

outcome to the employer.

Conforming with Codes of Conduct

A company’s code of conduct is reviewed from time to time, usually by the board of directors.

These codes ensure that a company operates fairly, legally, and morally. As a result, it is always

necessary to keep the document up-to-date with changing policies.

Most companies hold training sessions annually to keep everyone aware of the company’s code

of conduct. Throughout their employment, employees will be asked to attend training courses to

ensure they fully understand the provisions set out in their company’s code of conduct. At these

sessions, companies communicate that obeying the code of conduct is a very serious matter, in

fact determining employees’ longevity at the company.

Conforming to the codes requires employees remain aware of their conduct and appearance

while on the job. With today’s technology, it is certainly easy for an employee to access personal

websites on the company’s computers during the workday. However, if the company policy is

that technology is only to be used for business reasons, to do so then is clearly a violation of the

code of conduct and is risking not just censure but termination as well. Instead, an employee

might use his or her break time to follow up on personal issues by using a personal cell phone.

Companies also include how employees must dress in their codes of conduct. However, there are

times when most employers modify dress codes for a variety of reasons. According to the Equal

Employment Opportunity Commission (EEOC),

In general, an employer may establish a dress code which applies to all employees or

employees within certain job categories. However, there are a few possible exceptions.

While an employer may require all workers to follow a uniform dress code even if the

dress code conflicts with some workers' ethnic beliefs or practices, a dress code must not

treat some employees less favorably because of their national origin. For example, a dress

code that prohibits certain kinds of ethnic dress, such as traditional African or East Indian

attire, but otherwise permits casual dress would treat some employees less favorably

because of their national origin.

Moreover, if the dress code conflicts with an employee's religious practices and the

employee requests an accommodation, the employer must modify the dress code or

permit an exception to the dress code unless doing so would result in undue hardship.

Similarly, if an employee requests an accommodation to the dress code because of his or

her disability, the employer must modify the dress code or permit an exception to the

dress code, unless doing so would result in undue hardship. (para. 41-44)

Another area to consider when reflecting on accommodating particular aspects of a code of

conduct are the various methods used to achieve a company’s goals. All employees must use

strict ethical means to perform the jobs that they are assigned. For example, no employee is

permitted to plagiarize when making presentations to their colleagues. If the ideas that are

presented are borrowed from another person or company, a strict requirement is to give credit

and acknowledge all sources. In some instances, employees will be required to obtain permission

to use the information because of copyright laws—something which we will explore further in

Lesson 4.

Consequences of not following Codes of Conduct

Inevitably, codes of conduct are violated. Usually, the first step taken when violations occur is a

gentle reminder—a verbal warning. Though not required by law, many employers give an

employee notice that he or she has violated the code of conduct and warn that repetition may

result in a gamut of repercussions, the most severe of which is termination. If an employee

continues to violate the code of conduct, then he or she will eventually suffer the commensurate

punishment for the repeated offense, to include termination.

For a complex and varied number of reasons, some employees inevitably use questionable

practices to achieve success within an organization. When unethical behavior is discovered,

termination is always a strong possibility. Unethical behaviors include stealing, embezzlement,

and a wide variety of practices that can result in immediate dismissal. Depending on whether or

not criminal activity is involved, law enforcement might be involved, and the national news is

always reporting one story or another reflecting the consistency with which these offenses occur.

Check for Understanding

(Answer Key found below Review)

1. Do all businesses use the term code of conduct for the uniform set of standards and rules that employees go by in order to work for the company?

a. Yes b. No

2. A code of conduct would likely address all of the following except: a. dress. b. discrimination. c. religious affiliation. d. use of company property.

3. If you work in a company and become aware that a colleague is violating the code of conduct, your best course of action is:

a. to stay away from the offending behavior, including keeping silent about its existence.

b. to report the behavior to the proper supervisor or HR representative as soon as possible.

4. An employee has posted pictures on Facebook that are evidence of flagrant violations of the code of conduct. Do privacy rights protect the employee from being disciplined by his

or her company?

a. Yes b. No

5. An employee is visiting his or her Facebook account during company time—in most cases, will the employee automatically be terminated.

a. Yes b. No

Review

1. A code of conduct explains the employer’s expectations regarding conduct, appearance, and use of company property.

2. Some restrictions within a code of conduct include use of company property for personal use, sharing company information that is not already known to the public, and smoking in

undesignated work areas.

3. If an employee has a disability, the employer must permit an exception to the dress code unless doing so would result in undue hardship.

4. If an employee continually violates the code of conduct, he or she can be legally terminated.

Answer Key

1. B - While virtually all companies have a document that outlines specific behaviors and guidelines for all employees, and while many companies do use the term code of conduct,

the name itself varies greatly in between companies.

2. B - In fact, an inquiry about one’s religious affiliation would be against the law and protected by federal and state laws.

3. B - Reporting behaviors that violate the code of conduct is often included in the code, and not doing so might be a violation of the code in itself.

4. B - As above, once an employee opens his or her actions to public view, privacy laws do not apply.

5. An employee is made aware of the code of conduct and in most cases must sign confirmation of the awareness, so unless the act is in violation of the rules stated in the

code, the employee will not be dismissed.

References

Federal Deposit Insurance Corporation. (2005). Corporate codes of conduct: Guidance on

implementing an effective ethics program. Retrieved from https://www.fdic.gov/news/news/financial/2005/fil10505.pdf

U.S. Equal Employment Opportunity Commission. (n.d.). Prohibited employment

policies/practices. Retrieved from

http://www.eeoc.gov/laws/practices/index.cfm#dress_code