1 MODULE 2

Chapter 2

Code of Ethics and Code of Conduct

Code of Ethics Definition

The code of ethics is moral standard that the company expects employees to follow. At a minimum,
ethics guidelines are established by the laws and industry regulations. A business can exceed
minimum ethics guidelines to ensure that employees feel safe, avoid situations where they feel
harassment or discrimination. Conflicts of interest are also addressed in a code of ethics. A well –
written code of ethics that’s adhered to builds trust among employee and establishes credibility with
partner companies and consumers.
Sometimes it is referred to as a Value Statement, it behaves like the Constitution with general
principles to guide behaviour; outlining a set of principles that affect decision-making. For example if
an organization is committed to protecting the environment and “being green” the code of ethics will
state that there is an expectation for any employee faced with a problem, to choose the most “green”
solution. It works on the bases “treat others as you would like to be treated”. When faced with ethical
dilemmas or debatable situations, what’s articulated in the Code of Ethics can help guide decision
making.
“Code of Ethics” as such standards are reasonably necessary to promote:

1. Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest
between personal and professional relationships
2. Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed
by the issuer
3. Compliance with applicable governmental rules and regulations
Definition of Code of Conduct
A code of conduct applies code of ethics to a host of relevant situations. A particular rule in Code of
Ethics might state that all employees will obey the law, a code of conduct might list several specific
laws relevant to different areas of organizational operations, or industry, and that employees need to
obey.
The code of conduct outlines specific behaviors that are required or prohibited as a condition of
ongoing employment. It might forbid sexual harassment, racial intimidation or viewing inappropriate or
unauthorized content on company computers. Codes, along with other measures, have helped some
companies dig themselves out of scandals, and have helped many companies build a healthier work
climate and reputation.
Another code of conduct example might require everyone to protect consumer data. This is a law and
sets a general guideline for all employees. However, the accounting department follow a higher set of
privacy protocol set forth in the code of conduct. A call center might require that all personal items be
left in a locker to prevent accidentally capturing or removing consumer personal information.
Every business should have a clear vision, when it comes to ethics and conduct. What that happens,
then employees work better as a team, job satisfaction increases and performance improves when
companies set the tone with meaningful ethical and conduct standards. The result is a positive
corporate culture, in which people want to go work and that consumers enjoy working with these
employees.
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Either way, whatever type of code an organization chooses to employ, it is critical that it is treated
consistently in every instance of wrong doing. The code needs to apply to every employee from the
ground up, and no matter how small the violation, appropriate discipline needs to take place. For
example, if your code stipulates that theft of company property is prohibited, and an employee takes
home one pack of post-it-notes from the supply inventory, that’s theft, and should be treated as such.
A great code and a strong company culture is the heart of a successful organization. This code helps
the organizations to build a culture of integrity, transparency and accountability. An organization’s
culture is different in all industries: there’s no one-size-fits-all solution for building and adopting a
strong culture is with the integration of a strong compliance program, including a whistle blower
hotline. This is a powerful tool for any organization to implement in their proactive measures to ensure
their business success and grow their strong culture where employees can thrive.
Each entity implement local employee codes of conduct. These codes are intended for all employees
to help them develop their activities while respecting the Group’s ethical principles.
In compliance with local uses and regulations, they are based on 10 fundamental themes.
Difference of Code of Ethics and Code of Conduct
It is easy to see why a code of ethics and a code of conduct may be confused or used
interchangeably. Both have goals of setting a standard of behaviors from employees. Both code of
ethics and code of conduct are similar as they are used in an attempt to encourage specific forms of
behavior by employees. Ethics guidelines attempt to provide guidance about values and choices to
influence decision making. Conduct regulations assert that some specific actions are appropriate,
others inappropriate. In both cases, the organizations desire is to obtain a narrow range of acceptable
behaviors from employees.
They are, in fact, two unique documents. Code of ethics, which govern decision making, and code of
conduct, which govern actions, represent two common ways that companies/ organizations/ agencies
self – regulate. They are often associated with large companies/organizations/agencies, and provide
direction to employees and establish a public image of good behavior, but of which benefits business
of any size.
The primary difference is that a code of conduct is less morally driven than a code of ethics. For
example, the code of conduct might require all employees to wear specific color or a company shirt
when in the office. This is not an ethical issue, but it is a conduct issue designed to create
cohesiveness among employees.
Take a look for our table of difference:

Code of Ethics Code of Conduct

Ethics rules help people make decisions Conduct rules require specific behaviors
A moral standard that the company expects Code of conduct states how the company
employees to follow expects employees to have
Every code of ethics scenario should have a Code of conduct may not always be ethically
corresponding set of rules driven
Ethics are higher level concepts Code of conduct gets down to specific action
expectations
Code of ethics might state that all employees A code of conduct explains for example, the
must obey all safety protocols distance from an oxygen tank employees are
allowed to smoke
Ethical standard generally are wide – ranging Conduct standards generally require little
and non – specific, designed to provide a set of judgement; you obey or incur a penalty, and the
values or decision – making approaches that code provides a fairly clear set of expectations
enable employees to make independent about which actions are required, acceptable or
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judgements about the most appropriate course prohibited.

of action

Key principles of Code of Conduct

These codes are intended for all employees to help them develop their activities while respecting the
Group’s ethical principles. In compliance with local uses and regulations, they are based on 10
fundamental themes.
1. Respect for laws and regulations

The group upholds the highest standards in how it runs its activities, notably by respecting human
rights labor laws and the environment.
2. Respect for People
Safety and health in the workplace, prevention of discriminatory actions and respect for third parties.
Safety and health workplace
Safety of employees is one of the priorities and safety will never be compromised for the sake of
efficiency. Each employee has the right to work in safe and healthy conditions, and has a duty to
ensure this behaving responsibility in the workplace; safety policy extends to all employees,
subcontractors and service providers. Each employee must exercise their professional activities by
abiding with the safety, hygiene and health rules applicable in his or her workplace, and by
participating in appropriate training sessions that might be planned in these areas.
Prevention of discriminatory actions
The Group is determined to after personnel equal opportunities for recognition and career
advancement. Regardless of their ethnic origins, gender, beliefs and sexual orientation or physical
condition and will not tolerate any form of discrimination or harassment.
Respect for third parties
It is forbidden for any employee to discuss or agree with a competitor an arrangement which prevents,
restricts or distort fair competition, agreements, for example, to fix prices, exchange price information,
share markets or limit productions are strictly prohibited.
3. Respect for the environment

Respect for the environment and the preservation of natural resources in its operations and those of
its customers is a major priority.
4. Respect for competition law regulations
Competition law is applicable to every aspect of a company’s commercial activity; negotiations with
customers and suppliers, contacts with competitors, marketing and sales promotion.
5. Respect for rules on insider trading
Any employee holding sensitive information could influence the smooth operation of an agency if it is
made public. The employee must keep this information confidential and must not undertake, or
recommend that a third party undertake or have undertaken, any operations. The employee
concerned must abide by the measures in the memorandum on the prevention of insider trading
issued by the agency
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6. Prevention of conflicts of interest

Each employee must commit avoiding any situation that involves a conflict between their personal
interests and those of their organization.
For example, a case where an employee may work simultaneously for a customer, supplier or
competitor or holds a major interest in these latter, either directly or indirectly. Any employee who
could potentially be in a conflict of interest is encouraged to inform his or her immediate supervisor of
this situation.
7. Protection of Activities
Each employee must properly protect and keep confidential any strategic, financial, technical or
commercial data or documents that are not public and whose disclosure to third parties could be
harmful to the interests of the organization.
 Protection of Information
Likewise, professional and private information concerning a named person is a confidential and must
be subjected to all precautions needed to prevent inaccurate or inappropriate modification or
disclosure. This duty on confidentiality continues even after the departure of an employee.
 Protection of property and resources
Each employee must properly protect and keep confidential group property and resources such as
intellectual property (patents, trademarks, and copyrights), installations, equipment and financial
resources or cash. These resources and property must be used in accordance with their professional
purpose and in the established framework.
 They may not be used for personal ends except if explicit authorization has been granted by a
duly authorized individual in the framework of established procedures.
 Lastly, it is the responsibility of each employee to protect the property and resources of the
group against any damage, inappropriate alteration, fraud, loss or theft.
8. Transparency and integrity of information

Each employee who takes part in the production, analysis, filing or communications of information
must carry out these operations honestly and transparently.
1. Internal control and audit
Internal control systems set up within the Group (respect for laws, regulations, policies or procedures,
asset protection and reliable financial information) help control its activities, operational efficiency and
the efficient use of its resources.
2. Implementation of the Code of Conduct
If there is any doubt about the interpretation or application, in a given situation, of the rules presented
in this document.
Each employee has the right to inform his or her immediate supervisor, or his or her unit’s Human
Resources Department, Legal Department or Corporate Governance Officer, the Group Personnel
Department or the group ethics officer about it.
In addition, an employee who has in good faith pointed out breach in the rules pointed out in this
document will not be subject to any disciplinary measures.
Professional ethics
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Professional ethics encompass the personal, and corporate standards of behavior expected by
professionals.
The word professionalism originally applied to vows of a religious order. By at least the year 1675, the
term had seen secular application and was applied to the three learned professions:
1. Divinity
2. Law
3. Medicine
The term professionalism was also used for the military profession around this same time.
Professionals and those working in acknowledged professions exercise specialist knowledge and skill.
How the use of this knowledge should be governed when providing a service to the public can be
considered a moral issue and is termed professional ethics.
It is capable of making judgements, applying their skills, and reaching informed decisions in situations
that the general public cannot because they have not attained the necessary knowledge and skills.
One of the earliest examples of professional ethics is the Hippocratic Oath which medical doctors still
adhere to this day.
A 12th – century Byzantine manuscript of the Hippocratic Oath
Ethics in Law Enforcement and Policing
It’s often said that no other profession demands a higher ethical standard than that of law
enforcement. Regardless of whether or not there other careers that require a similar dedication to
doing the right things, it is undeniable that there is an understandably tremendous degree of
expectations placed upon police officers.
Professional Codes of Ethics
General rule is to ethically act in accordance with approved standards of conduct and responsibility or
according to the respective ethical code of behavior.
 Importance of Professional Codes of Ethics
 Man ethical dilemmas in criminal justice
 Complicated relationships in the field
 Requirement of professionalism
Areas of ethical concern for decision making
The three areas below are not “static”. They, at times overlap, at times are mutually exclusive, and
numerous varieties in between.
Making Ethical Decisions: Process
Ethical decision making refers to the process of evaluating and choosing among alternatives in a
manner consistent with ethical principles. In making ethical decisions, it is necessary to perceive and
eliminate unethical options and select the best ethical alternative.
The process of making ethical decisions requires:
1. Commitment: the desire to do the right thing regardless of the cost
2. Consciousness: the awareness to act consistently and apply moral convictions to daily behavior.
3. Competency: the ability to collect and evaluate information, develop alternatives, and foresee
potential consequences and risks
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Good decisions are both ethical and effective:

Ethical decisions generate and sustain trust; demonstrate respect, responsibility, fairness and caring;
and are consistent with good citizenship. These behaviors provide a foundation for making better
decisions by setting the ground rules for our behavior.
Effective decisions are effective if they accomplish what we want accomplished and if they advance
our purposes. A choice that produces unintended and undesirable results is ineffective. The key to
making effective decisions is to think about choices in terms of their ability to accomplish our most
important goals. This means we have to understand the difference between immediate and short –
term goals and longer – range goals.
Making Ethical Decisions: Model
The “character – based decision making model” model, developed by the Josephson Institute of
Ethics, can be applied to many common problems and can also be used by most individuals facing
ethical dilemmas.
It involves three steps:
1. All decision must take into account and reflect a concern for the interest and well-being of all
affected individuals (“stakeholders”).
The underlying principle here is the Golden rule – help when you can, avoid harm when you can.
2. Ethical values and principles always take precedence over non – ethical ones.
Ethical values are morally superior to non- ethical ones. When faced with a clear choice between such
values, the ethical person should always choose to follow ethical principles.
3. Perceiving the difference between ethical and non – ethical values can be difficult. This situation
often occurs when people perceive a clash between what they want or “need” and ethical principles
that might deny these desires. If some rationalization begins to occur, this situation is probably
present.
It is ethically proper to violate an ethical principle only when it is clearly necessary to advance another
true ethical principle, which according to the decision – maker’s conscience, will produce the greatest
balance of good in the long run.
Some decisions will require you to prioritize and to choose between competing ethical values and
principles when it is clearly necessary to do so because the only viable options require the sacrifice of
one ethical value over another ethical value. When this is the case, the decision – maker should act in
a way that will create the greatest amount of good and the least amount of harm to the greatest
number of people.

7 steps to help you make ethical distinctions between competing options when you are face
with a difficult choice. (According to Josephson Institute of Ethics)
Making ethical choices requires the ability to make distinctions between competing options. Here are
seven steps to help you make better decisions:
1. Stop and think: this provides several benefits. It prevents rash decisions, prepares us for more
thoughtful discernment, and can allow us to mobilize our discipline.
2. Clarify goals: before you choose, clarify your short – term and long – term aims. Determine which of
your many wants and “don’t wants” affected by the decision are the most important. The big danger is
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that decisions that fulfil immediate wants and needs can prevent the achievement of our more
important goals.
3. Determine facts: Be sure you have adequate information to support an intelligent choice. To
determine the facts, first resolve what you know, then what you need to know. Be prepared for
additional information and to verify assumptions and other uncertain information. In addition:
a. Consider the reliability and credibility of the people providing the facts.
b. Consider the basis of the supposed facts. If the person giving you the information says he or she
personally heard or saw something, evaluate that person in terms of honesty, accuracy and memory.
4. Develop options: once you know what you want to achieve and have made your best judgement as
to the relevant facts, make a list of actions you can take to accomplish your goals. If it’s an especially
important decision, talk to someone you trust so you can broaden your perspective and thinks of new
choices. If you can think of only one or two choices, you’re probably not thinking hard enough.
5. Consider consequences: filter your choices to determine if any of your options will violate any core
ethical values, and then eliminate any unethical options. Identify who will be affected by the decision
and how the decision is likely to affect them.
6. Choose: make a decision. If the choice is not immediately clear, try:
a. Talking to people whose judgement you respect.
b. Think of a person of strong character that you know or know of, and ask yourself what they would
do in your situation
c. If everyone found out about your decision, would you be proud and comfortable?
d. Follow the golden rule: treat others the way you want to be treated, and keep your promises.
7. Monitor and modify: ethical decision – makers monitor the effects of their choices. If they are not
producing the intended results, or are causing additional unintended and undesirable results, they re –
assess the situation and make new decisions.
Ethical dilemmas, also known as a moral dilemmas, are situations in which there is a choice to made
two options, neither of which resolves the situation in an ethically acceptable fashion. A moral dilemma
is a conflict in which you have to choose between two or more actions and have moral reasons for
choosing each action. Learn more about moral dilemmas from examples and test your knowledge with
a quiz.
Characteristics of Ethical Dilemmas

 A choice must be made between two (or more) courses of action

 Significant consequences for taking (or not taking) any action
 Each action is supported by one or more ethical principles
 Principles supporting the unselected courses (s) of action will be compromised
 Fundamentally ethics is knowing what is right and doing it.
 The heart has reasons that reason will never know (Pascal)
What are the ethical models?
The ETHICS model is the theoretical grounded ethical decision – making model that draws from the
latest relevant literature in ethics and integrates multiple theoretical perspectives. Specifically the
model is comprehensive and accessible, and can be used with a wide range of cases
An ethical decision – making model is a framework that leaders use to bring these principles to the
company and ensure they are followed.
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6 Steps foe making ethical decisions

In other instances, you may feel unsure about situation and a decision, since there seem to be a
number of acceptable alternatives. If you ask yourself these types of questions, the issue probably has
ethical or moral implications.

This 6-step process helps you make a thoughtful and responsible decision.
1. Establish the facts in a situation
Establish exactly what has happened (or is happening) and who is involved in the situation before
trying to figure out what to do about it. Ask yourself the following questions:
What has happened or what is happening?
When and where did certain events occur?
Who is (or might be) involved in or concerned by the situation?
What do the parties involved have to say about the situation?
2. Decide whether the situation involves legal or ethical issues
The next step consist of determining whether the situation has legal implications. The following
questions can be useful in determining that: has anyone been harmed by the action or decision of
another, and if so, in what way? Does the action or the situation contravene an existing law? Was
there a breach of contract? Were the actions of the athlete discriminatory or constituted harassment?
3. Identify your options and possible consequences
Ask yourself: what could I do in this situation? Think about a variety of options. The first one to
consider should be not making my decision or taking no action. This would be the least demanding
option, and it could be thought of as representing one end of a continuum of possibilities. As a second
step, consider the other extreme of the continuum, and think of the most comprehensive or liberal
action you might take in the situation. Then, identify several intermediate options. Do not rule out any
option at this stage, even though at the outset it may appear an unlikely choice.
4. Evaluate your options
Assess the pros and cons of each of your options outlined in step 3. This critical in reaching a
decision. The notions outcome sought (i.e. striving to do what is good for individuals or the team) and
means used (striving to do things right) are central to ethical thinking. A decision should reflect a fair
balance between outcomes sought and the means used to achieve them.
5. Choose the best option
Making an ethical decision requires a final reflection on what is the best decision under the
circumstances, a just and reasonable decision that will apply where an ethical dilemma is involved. An
ethical decision is “the right thing to do” with regard to the duties and responsibilities of the person
making the decision, is made “the right way” and is consistent with the values and behaviors outlined
in the Code of Ethics.
6. Implement your decision

Putting your decision or plan of action into effect requires that you consider a number of things,
particularly if it involves dealing with individuals or groups of people. Consider the following as you
establish an action plan:
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- Choose your path. Exactly what are you going to do? Plan carefully the steps you are going to
take.
- Think about what may happen. Consider the likely outcomes of the decision and the how any
consequences will be managed.
- Identify who needs to know. Consider who needs to be informed of or involved in implementing
the action plan or decision.
- Determine if you can deal on your own with the person (s) involved. In issues not involving a
contravention of the law, it is often best to dry to deal with the issue informally and directly with
the individual involved.
- Warn, don’t threaten. This is an important concept when dealing with a situation at an informal
level. It entails informing the individual of the logical consequences of what can happen if a
situation is not resolved, rather than threatening the person with an end run.
- Think about what you might do next if the chosen plan of action is ineffective, think carefully
about what to do next. Inform the individual that you now have to follow up with plan B.
Personal Values
I – Core Contributors
1. Age/era
2. Location
3. Socioeconomic
4. Ethnicity
5. Religion
6. Family
II – External Contributors
1. Education
2. Social Interaction
3. Vocation
Professional Values
1. Organizational
 Professional standards (SOP’s)
 Organizational ethics
2. Governmental;
 Equality for all
 Accountability
Hammer Model of Scientific Misconduct
1. Negligence
Lack of training
Lack of support
Lack of commitment
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2. Deliberate Dishonesty
3. Begins with lack of commitment
4. Money
5. Notoriety – media
6. Ends justify the means – I know he’s guilty
7. Ego – I don’t make mistakes
D-O-O-R Model of Decision Making
D – Determine
O – Options
O – Outcomes
R – Recycle
D – Determine
 What is wrong?
 What’s the REAL issue for me?
 Is there are a moral or ethical threat to me or someone else?
 Would this be a problem if someone else was involved?
O – Options
 What are some extreme choices?
 Am I considering several choices?
 What resources or help do I have available?
 Chosen them wisely
O – Outcomes
What could happen based on the opinion I choose?
What could happen if I do nothing?
Who will be affected by what I do?
Is it the RIGHT thing to do?
R – Recycle
After an option is chosen, return to see if the original question is still valid.
Professional Ethics and Codes of Conduct

Professional ethics are principles that govern the behavior of a person or group in a business
environment. Like values, professional ethics provide rules on how a person should act towards other
people and institutions in such an environment.
Note:
Unlike values, professional ethics are often codified as a set or rules, which a particular group of
people use.
This means that all those in a particular group will use the same professional ethics, even though their
values may be unique to each person.
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The code is an example of a codified set of professional ethics for those who choose to enter the
immigration advice profession.

Ethical principles

Ethical principles underpin all professional codes of conduct. Ethical principles may differ depending
on the profession; for example, professional ethics that relate to medical practitioners will differ from
those that relate to lawyers or real estate agents.
However, there are some universal ethical principles that apply across all professions, including:
1. Honestly
2. Trustworthiness
3. Loyalty
4. Respect for others
5. Adherence to the law
6. Doing good and avoiding harm to others
7. Accountability
Professional codes of conduct draw on these professional ethical principles as the basis for
prescribing required standards of behavior for members of a profession. They also seek to set out the
expectations that the profession and society have of its members.
The intended of codes of conduct is to provide guidelines for the minimum standard of appropriate
behavior in professional context. Codes of conduct sit alongside the general law of the land and the
personal values of members of the profession.
Note:
The primary value of a professional code of conduct is not a checklist for disciplining non – confirming
members, although breaches of a code of conduct usually do carry a professional disciplinary
consequence. Rather, its primary value is to act as a prompt sheet for the promotion of ethical
decision – making by members of that profession.
Professional codes of conduct provide benefits to:
1. The public, as they build confidence in the profession’s trustworthiness
2. Clients, as they provide greater transparency and certainty about how their affairs will be handled
3. Members of the profession, as they provide supporting framework for resisting pressure to act
inappropriately, and for making acceptable decisions in what may be ‘grey areas’
4. The profession as a whole, as they provide a common understanding of acceptable practice which
builds collegiality and allows for fairer disciplinary procedures
5. Others dealing with the profession, as the profession will be seen as more reliable and easier to
deal with.
Other contributors to professional ethics
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Fiduciary duties – a legal obligation of one party to act in the best interest of another. The obligated
party is typically a fiduciary, that is, someone entrusted with the care of money or property. Also called
fiduciary obligation.
When an adviser agrees to assist a client, they agree to take on a level of responsibility for that person
and their immigration matter. The client becomes dependent on the adviser in relation to that
assistance. This is a fiduciary relationship between the fiduciary (the adviser) and a principal (the
client). Even without a code this fiduciary relationship means the adviser has certain obligations to
their client.
Contractual obligations

When an adviser enters into a contract (or written agreement) with a client this creates legally binding
obligations to perform the terms if the contract in a particular way. This includes a duty to act with
diligence, due care and skill, and also implies obligations such as confidentiality and honesty, even if
they are not specifically set out in the contract.
Many ethical issues are likely to stem from advisers’ relationship with clients. Most of these can be
overcome by having clear terms in a written agreement about how certain matters will be dealt with,
such as the sharing of confidential information, the use of interpreters, refunds and invoicing.
Codes of conduct

Codes of conduct are becoming more a staple in the academic lives of students while some of these
rules are based solely on academics others are more in depth than in previous years.
A code of professional conduct is a necessary component to any profession to maintain standards for
the individuals within that profession to adhere. It brings about accountability, responsibility and trust
to the individuals that the profession serves.
A code of conduct lays out an organization’s expectations and guiding principles for appropriate
workplace behaviour. Some policies also provide legal and ethical guidelines for relationships between
employees, service users and clients.
A well – written code of conduct clarifies an organization’s mission, values and principles, linking them
with standards of professional conduct. It can also serve as valuable reference, helping employees
locate relevant documents services and other resources related to ethics within the organization.
A code of conduct is a written collection of the rules, principles, values and employee expectations,
behaviour and relationships that an organization considers significant and believes are fundamental to
their successful operation.
Why code of conduct is important?
Code of conduct is a central guide and reference for employees in supporting day to day decision
making. A well written code clarifies organization’s mission, values and principles, linking them
standards of professional conduct.
Code of Conduct
Professional codes of conduct draw on these professional ethical principles as the basis for
prescribing requires standards or behaviour for members of a profession. They also seek to set out
the expectations that the profession and society have of its members.
The intention of codes of conduct is to provide guidelines for the minimum standard or appropriate
behaviour in a professional context. Codes of conduct sit alongside the general law of the land and the
personal values of members of the profession.
Note:
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The primary value of a professional code of conduct is not as a checklist for disciplining non –
conforming members, although breaches of a code of conduct usually do carry a professional
disciplinary consequences.
Rather, its primary value is to act prompt sheet for the promotion of ethical decision – making by
members of that profession.