Corporate Governance and Ethics
Assessment 1
Term 2, 2014

Tara Dayon S0257204

The concept of corporate social responsibility has an increasing continuous widespread attention from business people, consumers and academics. It is because the organisation received benefits for being socially responsible which has cost companies to have increasing commitment to implicate ethical standards. (Patrick, E 2011) To integrate the concept of corporate social responsibility, organisation creates business ethics, which includes standards, and principle known as codes of conduct to assist the behavior of people working in the company in the world of business. The stakeholders usually determine whether a specific behavior is ethical or not. (Ferrell, Fraedrich & Ferrell 2011). These codes of conducts have made a big difference in the business industry help improve overall organizational performance. Firstly, the codes of conduct along with education develop the worker’s job satisfaction and determination, aid the company’s recruiting efforts and help build strong relationships with business partners. Secondly, a lot of company leaders believe that “doing the right thing” is its own reward and has strong ethical cultural benefits. Finally in most organization, the effects of having an inspiring code has both helped workers’ towards the management approach and helps worker’s understand the values of the organisation. (The impact of codes of conduct on corporate culture.2014)

A code of conduct is intended to be a main guide and reference for everyone working in the organisation to assist and support their everyday decision-making. It is also used to clarify the organisation’s mission, principles and values. (Why Have a Code of Conduct | Ethics Resource Center. 2014). It is a tool to encourage discussion of ethics to help