(1) Acceptance and appreciation for diversity.
(2) Regard for and fair treatment of each employee as well as respect for each employee’s contribution to the company.
(3) Employees pride and enthusiasm for the organisation and the work performed by them.
(4) Equal opportunity for each employee to realize his/her full potential within the company.
(53 Strong communication with all employees regarding policies and company issues.
(6) Strong company leaders with a strong sense of direction and purpose.
(7) Ability to compete in industry nn innovation and customer service, as well as on the pricefront.
(8) Lower than average turnover rates (perpetuated by a healthy culture).
(9) Investment in learning, training, and employee knowledge enhancement.
Additionally, performance oriented cultures have been shown to possess statistically better financial growth. Such cultures possess high employee involvement, strong internal communications and an acceptance and encouragement of a healthy level of risk-taking in order to achieve innovation. Additionally, organisational cultures that explicitly emphasize factors related to the demands placed on them by industry technology and growth will be better performers in their industries.
According to Kotter and Heskett (1992), organisations with adaptive cultures perform much better than organisations with unadaptive cultures. An adaptive culture translates into organisational
success; it is characterized by managers paying close attention to all of their constituencies, especially customers, initiating change when needed, and taking risks. An unadaptive culture can significantly reduce a firm’s effectiveness, disabling the firm from pursuing all its competitive/operational options.
Q.14. Write short notes on “Impact of Code of Ethics”.
Ans. Companies have been writing codes of business conduct for decades, but the role they play in shaping corporate culture is changing dramatically. The focus is shifting from writing a comprehensive code of rules to regulate and conduct the business, to leveraging a values-based code that inspires principled performance among employees, management and executives.
This shift is propelled by both internal and external sources, Investors, customers and other stakeholders increasIngly want to do business with the organisations that have high ethical standards and, asa result, top management and board of directors are becoming more attuned to the ethical climate of their corporate culture. Additionally, there is increased pressure from regulators, including the US. Sentencing Commission’s amended Federal Sentencing Guidelines for Organisations (FSGO) — generally regarded as the criterion for an effective ethics and compliance program — that i requires organisations to focus on promoting an ethical culture and evaluating the effectiveness of their programs. According to the act, a code of ethics comprises standards reasonably necessary to promote:
(1) honestarNJ ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
(2) full, I r,accurate timely, and understandable disclosure in the periodic reports required to be filed by the issuer; and
(3) comptance with applicable governmental rules and regulations.
devekping or revising a code, a company should make sure that it addresses
honest conduct, conflicts of interest, disclosure in periodic reports, and
compliance with applicable governmental rtiles KL regulations.
Before de or revising a code, however, a company may find it helpful to consider why it is developing a code and what it wishes to achieve in that code
Q.15. How does a code of ethics impact your work practices?
Ans. Code oletbcs has a very large impact on our work practices such as:
A code of elhcs Is a set of written principles a company desires its employees to follow. LRN, a corporate ethks pnrari company, found in a survey that 62 per cent of employees think ethical codes altered the! beiaviour or helped in taking direct decisions.