The idea of a “code of conduct” or “code of ethics” is probably not new to you. As part of any established institution, be it your school or college or any company you have worked with, you have most likely read and agreed to follow a certain code of behavior that is aligned to the values of that organization. Even when you weren’t old enough to sign legal documents, your school almanacs or diaries had a list of rules and acceptable conduct that you were expected to adhere to. Most Organisations have a set of rules that they expect their employees to adhere to. Good English language skills will help you grow in an organization.

What Is a Corporate Code of Conduct?

It is a legal document that may sound complicated in its language, the idea behind it is simple. The code lists out the behaviors that it supports and those that it deems unacceptable, based on the values of the organization concerned as well as the law of the land. It also provides a mechanism for reporting and redressal of any violations of the rules in the code.

This legal document stems from the broad idea of corporate ethics, which deals with ethical questions that arise in a business environment. It spans across all activities and practices of a company. At an individual level, a company’s ethics will determine what it offers to and expects of its employees.

What is a Corporate Code of Ethics?

A company’s code of ethics reflects the importance it lays on conducting business in a clean, ethical, and responsible manner. Though it is a legal requirement of any incorporated organization to document and communicate a code of ethics, a company that takes ethics seriously will also put in significant effort in implementing, enforcing, and providing redressal and relief for violations of its code of ethics.

Why is Corporate Ethics Important?

A firm will invest effort in ensuring all employees know and adhere to a code of ethics because of the high risks involved. In today’s corporate environment, companies that are involved in unethical practices risk lawsuits, bad publicity, and even closure. Stock markets also place a lot of emphasis on companies following ethical practices. The history of companies like Enron and Arthur Anderson, which went bankrupt and eventually closed as a result of fraudulent behavior of some employees, points to the stakes firms have in keeping their practices above board.

Why it’s Important to Know Your Company’s Code of Ethics?

At an individual level as a new entrant into a firm, it is very important to be aware of the company’s code of ethics. Unless you are aware of the policies, you might unknowingly violate a policy and be liable for consequences. For example, many firms do not allow its employees to accept any gifts, no matter how small, from their vendors. So, if you are dealing with a vendor as part of your job description and their representative sends Christmas present addressed to you, you might be liable for serious consequences if you do not decline the present. In some companies, even something seemingly innocent such as having a meal with a vendor and allowing him/her to pick up the bill might be in violation of the code of ethics.

Another example of unintentional unethical behavior would be the work you do on an overseas project. When you are on a project abroad, it is very important to know the restrictions on your work permit or visa and stay within the law. Working on a project when you are on a tourist visa to another country for instance, maybe illegal. You and your company would be liable for consequences if you are in violation of this rule. Therefore, the onus is on you to make sure that you know what type of work you are allowed to do on your particular visa for the country you are working in.

Similarly, companies may be restricted from doing projects with companies that face governmental sanctions or international embargoes. So, if one of your clients has operations in a country that faces sanctions, you may not be allowed to work in that area. Again, the onus is on you and your team to find out whether you are within the legal limits. Typically, in large companies especially, there is a strong legal team that helps with all such questions and issues.

Personal Behavior Within Corporate Ethics

Within your team too, seemingly fun or innocent acts like playing a practical joke on a co-worker might lead to a policy violation. For example, there was a recent incident where a couple of graphic designers, as a prank, doctored some images of their teammates and circulated them within the team. As a result, they had to face questions from the company’s HR department.

The message therefore is that, you must take responsibility for your own actions. Take the time to know your firm’s policies and ask questions about it. Do not wait for someone to tell you what you need to know. Also, whenever you’re faced with a situation that may be in a grey area with regards to ethics, stop and ask someone who will know what to do, such as your immediate supervisor or the company’s legal team. ‘Rather safe than sorry’ is a good motto when it comes to questions of corporate ethics.

Refined English Language Skills

English is widely used in the corporate world. Proficient English language skills can be key for professional interactions. To improve your conversation skills, it would be a good idea to develop the ability to listen and have a good hold on the English language. If you feel you lack in your English speaking skills, you can try EnglishHelper’s free English learning program.

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