CODE OF ETHICS AND

PROFESSIONAL
CONDUCT
MONIKA CHANDEL(RD)
HPKVBS
(Central University of Himachal Pradesh)
  A code of ethics is a guide of principles designed to help
professionals conduct business honestly and with integrity. A
code of ethics document may outline the mission and values of
What Is a the business or organization, how professionals are supposed to
approach problems, the ethical principles based on the
Code of organization's core values, and the standards to which the
Ethics? professional is held.
 A code of ethics, also referred to as an "ethical code," may
encompass areas such as business ethics, a code of professional
practice, and an employee code of conduct.
  Business ethics refers to how ethical principles guide a business's
operations. Common issues that fall under the umbrella of
business ethics include employer-employee relations,
discrimination, environmental issues, bribery, insider trading,
and social responsibility.
Understandin  While many laws exist to set basic ethical standards within the
g Codes of business community, it is largely dependent upon a business's
leadership to develop a code of ethics.
Ethics  Both businesses and trade organizations typically have some sort
of code of ethics that their employees or members are supposed
to follow. Breaking the code of ethics can result in termination or
dismissal from the organization. A code of ethics is important
because it clearly lays out the rules for behavior and provides the
groundwork for a preemptive warning.
  Given the importance of climate change and how human
behavior has led to severely impacting the climate, many
companies have taken to include climate factors in their code of
ethics. These principles include manners in which the company is
dedicated to operating sustainably or how they will shift to doing
so.
 In many cases, this commitment to sustainability adds to the
….. costs of a company, but because consumers are becoming more
focused on the types of businesses they choose to engage with, it
is often worth the cost to maintain a good public image.
 Regardless of size, businesses count on their management staff to
set a standard of ethical conduct for other employees to follow.
When administrators adhere to the code of ethics, it sends a
message that universal compliance is expected of every
employee.
 A code of ethics can take a variety of forms, but the general goal is
to ensure that a business and its employees are following state and
Types of federal laws, conducting themselves with an ideal that can be
exemplary, and ensuring that the business being conducted is
Codes of beneficial for all stakeholders. The following are three types of
codes of ethics found in business.
Ethics  Compliance-Based Code of Ethics
 Value-Based Code of Ethics
  For all businesses, laws regulate issues such as hiring and safety standards.
Compliance-based codes of ethics not only set guidelines for conduct but also
determine penalties for violations.
 In some industries, including banking, specific laws govern business conduct.
These industries formulate compliance-based codes of ethics to enforce laws
Compliance- and regulations. Employees usually undergo formal training to learn the rules
of conduct. Because noncompliance can create legal issues for the company as
Based Code of a whole, individual workers within a firm may face penalties for failing to follow
guidelines.
Ethics  To ensure that the aims and principles of the code of ethics are followed, some
companies appoint a compliance officer. This individual is tasked with keeping
up to date on changes in regulation codes and monitoring employee conduct
to encourage conformity.
 This type of code of ethics is based on clear-cut rules and well-defined
consequences rather than individual monitoring of personal behavior. Despite
strict adherence to the law, some compliance-based codes of conduct do not
thus promote a climate of moral responsibility within the company.
  A value-based code of ethics addresses a company's core value
system. It may outline standards of responsible conduct as they
relate to the larger public good and the environment. Value-
based ethical codes may require a greater degree of self-
regulation than compliance-based codes.
Value-Based  Some codes of conduct contain language that addresses both
Code of Ethics compliance and values. For example, a grocery store chain might
create a code of conduct that espouses the company's
commitment to health and safety regulations above financial
gain. That grocery chain might also include a statement about
refusing to contract with suppliers that feed hormones to
livestock or raise animals in inhumane living conditions.
 While all businesses are different, and no two codes of conduct are the same, recurring factors and
themes are found among successful ones.
Your organization’s specific purpose for adopting a code of conduct will define the scope to aim
for. Some choose to focus on only the most essential values and guidelines to not overburden
employees with information they may forget. Some seek to be more comprehensive and produce
What to documentation covering as many aspects as possible.
Your code of conduct should include information in some form regarding:
include in a • The values your organization believes in

code of • Guidelines for behavior

conduct?
• Day-to-day business practices
• How employees should interact with outside parties
It is also essential to define the procedures and consequences of code violations where applicable.
It may be more challenging to identify a code of conduct violation when it comes to company
values. However, employees should know the disciplinary processes for fixed rules (harassment,
tardiness, etc.).
Finally, codes of conduct are typically prefaced with a letter from the CEO that provides a personal
touch and emphasizes the leadership team’s commitment to the principles and rules it contains.
 Details and topics related to the values the company holds itself to.
This section allows the company to show the ethics and beliefs most
dear to them and how they put this into action. This could include but
is not limited to:
• Business ethics
1. Company • Social responsibility
values • Environmental responsibility
• Employee rights
• Commitment and responsibility
• Diversity and inclusion
 Within a code of conduct, leadership must explain to all employees
what is expected of them in terms of behavior and performance. This
could be related to how they treat the people around them and
communicate or specifics related to how they perform their role. A
company could cover numerous employee behavior topics within a
code of conduct. Examples include:
2. Employee • Standards of professionalism
behavior • Discrimination and sexual harassment policies
• Use of company assets
• Use of social media
• Communication rules
• Disciplinary process
 In this instance, internal practices refer to defined rules related to day-to-day business
practices that are easy to explain. While similar to employee behavior, it is hard to define
a simple black and white definition for “Standards of professionalism.” That topic
requires more explanation to convey the expectation to an employee. Whereas a
company’s rules related to attendance and punctuality is a set thing that is simple to
understand. Examples of the internal practices a code of conduct could contain include:
• Dress code

3. Internal • Annual leave/holiday time

• Inclement weather policy
practice • Break policy, Onboarding process
• Job duties, Training guidelines
• Rules related to time off through illness/injury, Attendance and punctuality
• Use of phone while at work, Benefits
• Chain of command
• Legal compliance
 Finally, a code of conduct; should define the expectations for
employees when dealing with external parties. For example, this
could be in relation to confidential company material or a level of
courtesy and respect when dealing with customers. There are many
examples of external practices a code of conduct may define, such as:
4. External • Confidentiality
practices • Privacy
• Intellectual property policies
• Customer communication requirements
• Conflict of interests
  By creating a code of conduct:
Ethics and • The staff understands what rules and expectations management has. It
code of defines how to act while at work, how to communicate both internally and
externally, and helps employees be successful at the company.
conduct • The organization has concrete company policies to help compliance.
objectives • Potential customers and business partners understand the values of the
organization.
 Ethical Principles are:
1. Honesty and Integrity
2. Loyality
3. Creation & Implementation of ethical practices
4. Compliance
12 Ethical 5. Fairness of commercial practices
Principles 6. Respect
7. Trustworthiness
8. Responsibility & Transparency
9. Accountability
10. compassion
11. Social consciousness
12. Environmental care
  Honesty requires a commitment to telling the truth, regardless of
the consequences. It encourages trust among colleagues and
between a business and the public. Everyone in an organization
benefits from honesty. Employees want to work for honest
leaders, business owners want honest employees and clients want
to do business with honest partners. This means sharing
1. Honesty favorable and unfavorable news with the same candor and
& Integrity directness, leading to a reputation of reliability.
 Having integrity means adhering to a set of moral standards at all
times, even if no one is aware of your choices. Others notice when
you live and work with integrity, which leads to respect and
confidence in your decisions. This applies to people who work with
others and those who work alone, as strong integrity can
influence your honesty and obedience to rules and regulations.
   Loyalty means remaining faithful to business partners,
coworkers and clients to demonstrate your commitment.
You can develop lasting partnerships and a firm
foundation for future success when you prove your
2. Loyalty alliance and honor these agreements. This can extend to
maintaining relationships with suppliers, sharing a
promotion opportunity with coworkers in your
department or honoring financial commitments to the
community.
  Companies must do more than hope for their
organization to operate ethically. Leaders might develop a
defined code of ethics for their business practices and
share this with all employees. Consider using a consulting
3. Creation & firm to help craft a thorough and specific set of ethical
practices. Explaining exactly what a company expects of
Implementation employees reduces stress and confusion, creating clear
of ethical expectations and a shared mission for everyone.

practices  Beyond writing a code of ethics, companies must include

protocols to implement and enforce these policies.
Consider regular training on the company's practices
incorporating scenarios that team members can discuss
and work through. You can also create a recognition
program and incentives for those with high ethical
standards.
  The most basic level of ethical business practices
means complying with any laws related to your business.
From international trading regulations, state tax codes
4. and local building ordinances, companies must ensure all
practices adhere to these guidelines. Often, legal
Compliance regulations can serve as the beginning framework for an
organization's code of ethics. By starting at the macro
level, companies can use these industry regulations as an
outline to devise more specific policies and procedures.
 Being fair in the workplace involves treating everyone equally, from
assistants and interns to the CEO. Fairness also means avoiding
preferential treatment and encouraging everyone to share their
thoughts and ideas. A fair workplace promotes inclusion and equity
in-house as well as for clients and customers. Fairness in the
workplace creates a unified environment where employees feel
comfortable, which increases engagement.
5. Fairness  Fairness might encompass the following areas:
• Hiring new employees
• Promoting team members
• Delegating tasks
• Reviewing performance
 Treating others with respect is a core principle in business
ethics. Each team member deserves a voice and the ability
to share opinions and ideas in a supportive environment.
Workplaces that promote individual respect can experience
enhanced collaboration and teamwork among employees.
 Showing respect includes:
6. Respect • Listening to clients and coworkers with an open mind
• Showing kindness and courtesy
• Remaining polite even during disagreements
• Refraining from personal attacks
• Monitoring your nonverbal communication, including
body language and facial expressions
 Trustworthy workers keep their word to customers,
colleagues and business partners. Honoring commitments
proves that others can count on you, making you a trusted
employee and coworker. Trustworthiness also involves
being dependable and meeting your obligations.
7.  You can demonstrate trustworthiness at work by:
Trustworthiness • Arriving on time
• Meeting deadlines
• Showing up to scheduled meetings
• Establishing consistency in words and actions
  Being responsible in the workplace means taking ownership of
your tasks. Responsibility includes thinking about how your
actions can affect those around you and making choices that
consider other people. Employers and employees depend on
responsible workers to make the best decisions without
8. requiring constant supervision. Being responsible
demonstrates maturity, capability and discipline.
Responsibility  Creating transparency in the workplace is one way to promote
& ethical operations. Some companies may offer financial
transparency to investors or employees to show how the
Transparency company runs. Transparency can also refer to organizational
structure, criteria for hiring and firing and addressing mistakes
when they occur. For example, if a business must raise prices, it
can communicate the reasons directly and honestly to
consumers. This openness is another way to develop trust
among employees and customers.
 Accountability is important for employees to be held to a company's
ethical standards. If most team members support a business's
ethical code, they will expect others to behave the same way. This
creates a culture of high moral expectations that encourages all
team members to act ethically in areas such as:
9. • Managing time
Accountabili • Using company resources
ty • Producing an appropriate quantity and quality of work
 A business can also increase accountability by the public for its
actions. With numerous ways to connect with companies, including
email, and social media, consumers can easily communicate their
support or opposition to a company's actions. This accountability
encourages businesses to act efficiently and ethically.
 People who display compassion genuinely care about the well-
being of others. In business, compassion can mean that
organizations increase involvement in charitable causes and
interpersonal interactions between colleagues. It involves taking
the time to understand the thoughts and feelings of another
person.

10. People often want to work in an environment where they feel

valued and cared for and do business with companies that display
Compassion compassion towards consumers and the community. Consider
these examples of compassion in the workplace:
• A restaurant holds a fundraiser for a local child in the hospital
• A group of employees organizes a meal delivery schedule for a
coworker who has lost a loved one
• Company leaders schedule a day off for workers after a
particularly busy season
 As the world becomes increasingly connected, social issues receive
more and more attention. Consumers look for businesses that use
their platform to bring awareness to and support change on social
issues. Socially conscious business practices include:
11. Social • Following fair trade practices
consciousne • Working with business partners and suppliers that source ethically
ss grown products
• Paying fair wages
 Customers might prefer to do business with companies that take
these extra steps to impact society positively.
 The global climate crisis remains a focus for business
owners, employees and clients. Ethical business practices
include making choices to limit or reduce your negative
12. impact on the environment, such as:

Environmental • Reducing carbon emissions from transportation and

factories
consciousness • Limiting trash and waste production
• Encouraging energy-saving practices
• Creating more sustainable, cost-saving strategies
 ETHICAL
PRINCIPLES
AND
STANDARDS
 Ethical principles & standards are a set of principles established by the
founders of the organization to communicate its underlying moral values.
This code provides a framework that can be used as a reference for
decision-making processes.
These standards are an important part of an organization’s culture. They
Ethical establish the parameters of behavior that owners and top executives
expect from employees and also from suppliers, at least to the extent of
Principles & their relationship with the organization. A corporate governance system
will put a lot of effort into communicating and enforcing these principles.
standards This is mostly done through behavior modeling, which means that top
executives should set the example of how lower-level employees should
act.
These principles should serve also as guidelines for decision-making
processes to help employees align their personal criteria with the
company’s perspectives as different ethical issues arise within normal
business activities. This moral “compass” is crucial to maintain unethical
behaviors down to a minimum, mostly in managerial positions.
  Workers strive to both benefit those with whom they work and to
do no harm. In their professional actions, Workers seek to safeguard
Principle A: the welfare and rights of both those with whom they interact
professionally and other affected persons. When conflicts occur
Beneficence among Workers’ obligations or concerns, they attempt to resolve
and these conflicts in a responsible fashion that avoids or minimizes
harm. Because Workers’ professional judgments and actions may
Nonmaleficen affect the lives of others, they are alert to and guard against
personal, financial, social, organizational, or political factors that
ce might lead to misuse of their influence. Workers strive to be aware
of the possible effect of their own physical and mental health on
their ability to help those with whom they work.
  Workers seek to promote accuracy, honesty, and truthfulness in the
practice and teaching of Process Work. In these activities Workers
do not steal, cheat, or engage in fraud, subterfuge, or intentional
misrepresentation of fact. Workers strive to keep their promises and
Principle B: to avoid unwise or unclear commitments. In situations in which
deception may be ethically justifiable to maximize benefits and
Integrity and minimize harm, Workers have a serious obligation to consider the
need for, the possible consequences of, and their responsibility to
Competence correct any resulting mistrust or other harmful effects that arise
from the use of such techniques. Workers aspire to recognize and
promote wholeness in themselves, their clients and in groups with
which they work.
 Workers establish relationships of trust with those with whom they work.
They are aware of their professional responsibilities to society and to the
specific communities in which they work. Workers uphold professional
standards of conduct, clarify their professional roles and obligations,
accept appropriate responsibility for their behavior, and seek to manage
conflicts of interest that could lead to exploitation or harm. Workers
Principle C: consult with, refer to, or cooperate with other professionals and institutions
to the extent needed to serve the best interests of those with whom they
Professional work.
Workers strive to maintain a high level of competence in their work. They
Responsibility are expected to continue growing both professionally and in their personal
development. They regard the study of Work as a lifelong process and
recognize the need for continuing education, and/or therapy, and/or
consultation, and/or supervision. Because Work interfaces with disciplines
such as sociology, anthropology, psychology, the arts, theology, medicine,
and various physical and life sciences, Workers strive to recognize the
limitations of their own competence and take reasonable measures to seek
assistance and/or to refer clients to practitioners from other disciplines.
  Workers respect the dignity and worth of all people, and the rights
of individuals to privacy, confidentiality, and self-determination.
Principle D: Workers are aware that special safeguards may be necessary to
protect the rights and welfare of persons or communities whose
Respect for vulnerabilities impair autonomous decision making. Workers are
aware of and respect cultural, individual, and role differences,
People’s including those based on age, gender, gender identity, race,
ethnicity, culture, national origin, religion, sexual orientation,
Rights and disability, language, and socioeconomic status and consider these
Dignity factors when working with members of such groups. Workers try to
eliminate the effect on their work of biases based on those factors,
and they do not knowingly participate in or condone activities of
others based upon such prejudices.
  Workers strive to be aware of the broader social context and
consequences of their work with individuals, couples, families and
Principle E: groups. When conflicts occur between Process Workers’ explicit
Social responsibility to clients and implicit responsibility to wider social
groups, they attempt to resolve these conflicts in a responsible
Responsibility fashion that avoids or minimizes harm to either. To this Workers
aspire to learn about the broader social contexts in which they work
on which their work has an impact.
  Workers understand that relationships between and among people
Principle F: are an important vehicle for change. Workers engage people as
partners in the helping process. Workers seek to strengthen
Relationships relationships among people in a purposeful effort to promote,
restore, maintain, and enhance the well-being of individuals,
families, social groups, organizations, and communities.
  Ethics committee is formed in many organizations. They are
wholly devoted at workplace. These committees can raise
concerns of ethical nature; prepare or update a code of conduct,
and resolve an ethical dilemmas in organizations. They formulate
Ethics ethical policies and develop ethical standards. The committee
evaluates the compliance of the organization with these ethical
committee norms. The members of the ethical committee should be selected
from those persons who have knowledge of their industry, their
code of ethics and community standards. The committee
members are also conscious of the corporate culture and ethical
concise of the organization.
 The following committees are to be formed :-
(i) Establishing an ethics committee at the board level The
committee would be charged to oversee development and
operation of the ethics management programme.

……. (ii) Establishing an Ethics Management committee

 Ethics Management committee would be charged with
implementing and administrating an ethics management
programme, including administrating and training about policies
and procedures, and resolving ethical dilemmas. The committee
should be comprised of senior officers.
 To ensure a good ethical behaviour in the organization the
employees are to be given training. For this purpose a corporate
ethical training programme is to be devised. The main objective of
an ethical training program is to offer assistance to employees to
understand the ethical issues that are likely to arise in their work
place. When new employees are to be recruited, the induction
training should be arranged for them. This training will help to
Ethics Training familiarize with the company‘s ethical code of behaviour.
Importance of abiding by the code should be dealt with at the
Programme induction meeting.
A well-developed and proper training programme will help the
employees to understand the organization’s policies and
expectations, important and relevant rules, bye laws and
regulations which are to be complied with in the organization by the
employees. For the success of the training programmes, the senior
executive from every department must involve fully in the training
programme.
  Responsibilities of the Ethics Committee
It is the primary responsibility of the Ethics Committee to
receive complaints of unethical conduct against Process
Workers, to investigate the grounds of these complaints, and
The Ethics to document and respond to them appropriately. If the
Committee committee finds that the Ethics Code has been breached,
appropriate action may include, but is not restricted to, any or
all of the following: reprimand, censure, ameliorative
prescriptions, education, rehabilitation, and termination of
certification to practice Process Work.
Ethical
culture and
ethos
 There are ethical issues about the propriety of using
culture as a device for encouraging people to behave in
one way rather than another. However, if we assume for
the moment that it is acceptable for managers to foster
a culture that encourages ethical behaviour, what would
such a culture look like? Snell (1993 and 2000) used the
term moral ethos, rather than ethical culture, when he
Ethical culture dis-cussed this issue.
He defined moral ethos as comprising a set of ‘force-
fields’, all of which impinge on members’
understandings, judgements and decisions concerning
good and bad, right and wrong.
(Snell, 2000: 267)
 Snell argued that the moral ethos emerges from the interactions of
such forces. For example, if the demand for loyalty is low this may
encourage openness within an organisation that supports criticism
and acting with integrity.
Contrarily an organisation’s demand for loyalty may inhibit the
exercise of integrity. From an organisational perspective, loyalty is
possibly the most important behaviour to cultivate among
employees. Willmott (1998: 83) highlighted the contentious nature
.. of codes of conduct and the implicit role of loyalty within them
when he observed: the value ascribed to the adoption of codes is
made conditional upon their contribution to business objectives.
This implies that, in principle, the codes will be refined or discarded
according to calculations about their continuing contribution to
these objectives. Integrity is less amenable to codes of conduct. For
example, a code or rule to respect the confidentiality of corporate
affairs in all circumstances might conflict with a broader social
perspective of integrity.
 Paralleling Kohlberg’s stages of moral reasoning, Snell (1993:
Chapter 6) iden-tified six types of moral ethos that could arise
within organisations. They are:
1. Fear-ridden ethos. Behaviour that is characterised by coercion,
blind obedience and a myopic focus on organisational survival at
any cost.
six types of 2. Advantage-driven ethos. Employees are rewarded for getting the
best for the organisation even if this might involve deception,
moral ethos gamesmanship and exploitation of others if necessary. The ethos
encourages private alliances, secrecy and personal advantage.
3. Members-only ethos. This ethos demands loyalty and a shared
concern to pre-sent a good image to those outside the organisation.
Clever upstarts are to be tamed and brought into the fold. Internally
the focus on group membership can encourage paternalism, sexism
and racism.
 4. Regulated ethos. Regulation and accountability are typical of this
ethos. Codes of conduct are written and employees are often
expected to self-certify that they have obeyed the rules.
5. Quality-seeking ethos. This ethos seeks to encourage everyone to
work to the highest ethical standards. Training and development
… encourage debate and argument about what those standards
should be. The ethos can create a sense of arrogance and over-
commitment.
6. Soul-searching ethos. The organisational ethos supports a
spiritual learning community that emphasises integrity and ongoing
ethical dialogue.
 Given that corporate cultures can be employed in manipulative ways,
the issues of ethicality that pervade this area ultimately resolve
themselves around
“the process of moral thought and self-scrutiny that precedes it. This
under- standing of ethics puts weight on the process of thought that
precedes action, to qualify behaviour as ethical”.
(Sinclair, 1993: 69)
… Thus, the ethicality of a decision lies not in the behaviour displayed, or
the decision taken, but in the forethought that preceded the behaviour
or decision. This suggests that we need to think more critically about
notions of culture. The ‘forces’ that Snell referred to can be seen at the
visible level (e.g. the behaviour of individuals) or at more subtle, less
visible levels (e.g. assumptions and beliefs that inform behaviour). Thus
it is argued that culture operates at different levels, with important
implications for business ethics.
 Schein (1992) offered an analysis that reflects three levels of culture,
each with a different level of visibility.
The top or first level is the most visible level of culture. Within this
Levels of category would be included evidence such as signs, symbols, written
codes, forms of address (i.e. how seniors, peers and juniors are
culture expected to be addressed), clothing (formal, informal), stories and
myths (usually about past leaders), rituals, architecture and décor of
the company’s premises. These visible signs, practices and images
level 1 are described as artefacts of culture. Schein argues that while these
are the most visible evidence of culture they are not always easy to
decipher by the external observer. Forms of initiation and
‘apprenticeship’ are often required before the full significance of
these artefacts is revealed.
 The second level of culture is represented by the espoused
values of a group. These are the beliefs that are articulated,
that are audibly expressed. Sometimes these beliefs can be
represented by a ‘go-get-’em’ philosophy, with staff
encouraged to ‘take the moment’ or to ‘go for it’. Whether
these values are wholeheartedly believed is a matter of
question, but if the stated values or beliefs tend to deliver
the outcomes sought, then the credibility of the beliefs will
Level 2 grow and become accepted as ‘the way things are done
around here’. An interesting example of how language is
used to create particular attitudes and cultures is reflected in
the refusal of one leading security firm to allow its
employees to use the term ‘failure’. This reflects a refusal by
the senior management to accept any level of
underachievement by employees, or for the employees to
see any demand as unattainable.
 Schein referred to the third level as basic assumptions. These are
the unspoken beliefs that exist within an organisation. They are the
least visible, yet the most pervasive, form of culture because they
represent deeply embedded ways of think-ing about such questions
as the nature of human nature, humanity’s relationship with the
environment, the nature of truth and of human activity. Basic
assumptions are difficult to bring to the surface and challenge.
Consequently they operate below the level of consciousness and
can undermine the idea of moral agency, which requires conscious
Level 3 deliberation. If corporations are capable of subliminal influence on
their employees’ basic assumptions then this would be a potent
threat to moral agency. There is much debate (Smircich, 1983),
however, about whether top managers do have this power or
whether any attempts they make to guide cultures lead only to
unanticipated changes. That corporations can shape employees’
beliefs is not questioned; whether those influences can be con-
trolled to the organisation’s benefit is doubtful, at least in the short
term.
 The direction and example presented by senior management in terms of
what is considered to be acceptable practice within an organisation must
inform and shape the behaviour of others. Most textbooks argue that it is a
leader’s role to define the vision and core values of an orga The UK
government, through an agency called the CSR Academy, has published a
set of CSR compe- tencies. These can be seen as a tool for establishing a set
of behaviours and core values within organisations that would support the
development of a CSR culture within an organisation. In Schein’s terms they
would be cultural artefacts.
Ethical The competencies are intended to make CSR an integral part of business
leadership practice not only in large companies but also in small ones. The
competencies (CSR Academy, 2004)
• focus on the personal qualities, attitudes and mind-sets which managers
need to learn and which will in turn drive improvements in business
performance.
• should become embedded into the education, training and development
of managers and staff,
• are a tool for assessing performance in all business functions.
  The competencies are:
1. Understanding society and business’s roles and obligations within
it
2. Building capacity within an organisation to work effectively in a
responsible manner
Competencies 3. Questioning business as usual
4. Stakeholder relations
5. Strategic view and ensuring that social and environmental
concerns are con-sidered in broad decision making
6. Harnessing diversity.
 Alongside these competencies are a set of benchmark indicators
that can be used to assess whether people in the company
• are aware of CSR

… • understand the issues around CSR

• apply the competencies at work
• integrate the competencies into the culture of the company
• provide leadership on CSR across the organisation.
 Competencies have normally been defined as an ability to do
something. Distinctively, these CSR competencies are about
understanding at the lower levels of attainment and only about
action at the higher levels. As a cultural artefact the extent to which
… the competencies will affect the levels of values and basic
assumptions in organisations is limited. They are probably best seen
as a way of raising the priority given to CSR in businesses, especially
smaller ones, and of creating a market for training courses in CSR.
 A significant problem for any organisation that publicises its commitment to
high ethical standards in all its business dealings is that any one single
departure from such standards is likely to attract considerable media attention
and cast doubt upon the full range of the organisation’s activities. If this does
happen, the reaction could be both unreasonably harsh (depending of course
upon the nature and scale of the alleged infraction), and also a somewhat
disingenuous approach to the analysis and reporting of the incident. Even if
the infraction in question is finally judged to be an intentional and knowingly
…. unethical act on the part of the individual employee concerned (however
senior), the individual transgression might be just that, an individual’s error of
judgement. It might not be a revelation of institutionally entrenched unethical
practices. In such a situation the more telling test of organisational
commitment to a broadly accepted notion of corporate ethical behaviour
would be how the organisation’s senior management respond to the
transgression and the steps they take to remedy the problem. In short, no one
is perfect, but when errors are made, or misjudgements are revealed, how do
we as individuals and corporations react and respond?
 The adjustment between the self and the other is neither
assimilation of perspectives, one to the other, nor the fusion of
perspectives into an indistinguishable oneness, but can best be
understood as an ‘accommodating participation’ in which each
creatively affects and is affected by the other through accepted
means of adjudication ... because of these dynamics, the leader
… does not ‘stand apart’ from a following group, nor is the leader an
organizer of group ideas, but rather leadership is by its very nature
in dynamic interaction with the group, and both are in a process of
ongoing transformation because of this interaction.

(Buchholz and Rosenthal, 1998: 418–19)

 An important caveat with respect to greater openness and transparency in
corporate dealings is the issue of litigation. The greater demands made of public
corporations in terms of their various impacts are in many respects a sign of a
maturing society. However, there has been an attendant increase in the
propensity of members of the public to take legal action against corporations
when infractions occur. In such a context it should not be surprising that
corporations become very wary of revealing their ‘failings’ in public for fear of
how such information might be employed. These complex issues can only be
… moved forward by debate and a developing sense of balance between:
 on the one hand, reparation for any ‘injuries’ experienced as a result of
substandard performance by an individual or organisation, where culpability is
evident; and
 on the other, a recognition that ‘things’ will and do go less than satisfactorily
on occasions and that if the ‘failing’ was innocent, and all reasonable measures
had been taken to avoid its occurrence in the first place, then retribution
should be avoided, to encourage and foster learning from the experience.
  https://www.investopedia.com/terms/c/code-of-ethics.asp
 https://www.valamis.com/hub/code-of-conduct
 https://www.indeed.com/career-advice/career-development/ethic
Reference al-principles-in-business
 https://www.processwork.edu/about-pwi/ethical-principles-and-st
andards-for-process-workers/