Business Code of Ethics : A code of ethics often focuses on social issues. It may set out general principles about an organisation’s beliefs on matters such as mission, quality, privacy or the environment. It may delineate proper procedures to determine whether a violation of the code of ethics has occurred and if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violation of a private organisation’s code of. ethics usually can subject the violator to the organisation’s remedies (such as restraint of trade based on moral principles). The code of ethics links to and gives rise to a code of conduct for employees.
(2) Code of Conduct (Employee Ethics) : A code of conduct for employees sets out the procedures to be used in specific ethical situations, such as conflicts of interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code of ethics occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a code of conduct may subject the violator to the organisation’s remedies which can under, certain circumstances, result in the termination of employment.
(3) Code of Practice (Professional Ethics) A code of practice is adopted by a professional or by a governmental or non-governmental organisation to regulate that profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account of what behaviour is considered “ethical” or “correct” or “right” in such circumstances. In a membership context, failure to comply witI a code of practice can result in expulsion from the professional organisation. In its 2007 International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for organisations, the International Federation of Accountants provided the following working definition: “Principles, values, standards, or rules of behaviour that guide the decisions, procedures and systems of an organisation in a way that
(i) contributes to the welfare of its key stakeholders, and (ii) respects the rights of all constituents affected by its operations.”
Q.5. What do
you mean by corporate mission statement? Why does a company need a
corporate mission statement? (2011)
Or Explain corporate mission statement. (2013)
Ans. Corporate Mission Statement : A corporate mission statement is a testimonial of the purpose of a company and organisation. The mission statement should direct the actions of the organisation, explain its overall purpose, provide a pathway, and channelise the decision-making. It provides “the framework or background within which the company’s strategies are formulated. Traditionally it is connected with Christian religious groups; indeed, for many years, a missionary was assumed to be a person on a specifically religious mission. The word “mission” is a derivative of Latin word missum which means “to send”. Effective mission statements commonly clarify the organisation’s purpose.
The vision and the mission statements are often confused with one another and some organisations even use them interchangeably. In simplest terms, the mission is the organisation’s reason for existence, and vision is what it wants to become in future.
The answer depends on whether or not the mission statement a company composes has significant meaning to them, or is just another corporate exercise in futility. A mission statement can guide your company in good times and bad times of crisis. A meaningful mission can act as a moral and corporate compass. It can help you to make decisions aligning with your values and goals. Each sample mission statement conveys the business founder’s core beliefs and values.