BUILDING A VALUE SYSTEM

Codes of Ethics The first step in a corporate is to set the vision statement. In order to act with integrity the next step is to define its values and set priorities. These corporate values are thus communicated to the employees as Code of Ethics. There are 3 phrases: Code of Ethics- These are statements of values and principles which define the purpose of the company and are in the form of Credos and Principles. Codes of Practice- These are guides to decision making manager. They are actually this is how we do things in the company. It defines the character of the company. Codes of Conduct- These are stating what one must do and not do in a company. Codes of Conduct state, this is how we expect an employee to behave or conduct themselves. Typically they are set of rules listed as laws of the company prohi!iting certain actions. "enalties for violations are also detailed. Building a alue !ystem #alues, Ethics and moral principles are essential in a work place. It is therefore important that these are well defined, put in simple words so that all in the organi$ation is a!le to comprehend. %n ill defined statement would !ecome cum!ersome, confusing and the very reason for !uilding a value system may evaporate. There are however varia!les which need to considered in !uilding a self explanatory value system. They are: Codes differ from actual: &ritten codes may !e different from practiced codes. Codes for decorations on boo"shelf

 Codes concern with duties and responsibilities of employees# These are specified and often used as a source for catching and controlling the employees. Codes become a source for control. $o effective program: %n organi$ation with an effective ethical training and follow up and review program will !e a!le to !uild up a value system in the organi$ation. Building a value system: It is a learned and often inherited from parents and peer group !y the top management of the organi$ation. %al" the &al"- !etting !tandards from the top %fter making codes of ethics, practice and conduct, the company employees all together have to stand!y with what is written and !ring them into day to day working. &his is called wal" the tal". 'oth of them go together. Emphasis on top management to walk the top. The three codes have to !e explicit and clear. (o confusion. )o not copy codes of other company. 'uilding an ethical culture can develop with mutual trust, mass contact and popularity of top leaders of the company. The sincerity of the management has to !e clear an explicit for all the employees to perceive. 'uild compliance management. !ocial 'esponsibility of Business Corporate social responsi!ility *C+,- is the attention of the !usiness to the promotion of social welfare and goodwill of stakeholders. C+,

companies get a reputation which !rings in more !usiness and a !rand value. It also !rings in investments and attract .uality employees. It also takes into account how companies treat their stakeholders and the community, the environment, the government and the general pu!lic. The primary o!/ective and o!ligation of a corporate is however the economic mandate of its owners. &here must be a balance of all. ,eputation is important to a company. "u!lic attaches0 considera!le importance to reputation of the company whenever they invest. *,1 ,1 is !ased on 23 attri!utes divided into following categories: +ocial ,esponsi!ility, Emotional %ppeal, "roduct and +ervices, &orkplace Environment, 4inancial "E,45,6%(CE, #ision and 7eadership. Encouraging Ethical behavior ,eward +ystem 8 "eople do what is rewarded and avoid what is punished9 'uilds positive culture 'uilds Commitment !y Employees. (nformation )eed Bac" and Corrective Programs