Importance of the code of ethics in the organization
Counteracting the unethical actions and influencing the behavior of the human factor towards ethical behavior must be a priority of a company’s policy. The research and recommendations in this direction outline the necessity of an Ethic code that shall comprise individual and company values, and who...
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| Date: | 2014 |
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Інститут економіки промисловості НАН України
2014
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| Cite this: | Importance of the code of ethics in the organization / E. Jordanova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 132-135. — англ. |
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| citation_txt | Importance of the code of ethics in the organization / E. Jordanova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 132-135. — англ. |
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| description | Counteracting the unethical actions and influencing the behavior of the human factor towards ethical behavior must be a priority of a company’s policy. The research and recommendations in this direction outline the necessity of an Ethic code that shall comprise individual and company values, and whose harmonious interaction shall provide stability and efficiency of the management process. This code shall serve as a balancing force among the various interests and systems of values, which shall thus establish common ethical standards of behavior.
Протидія антіетичним діям и вплив етичної поведінки на поведінку людського фактору повинні бути пріоритетом політики компанії. Дослідження та рекомендації в цьому напрямку дозволили намітити необхідність в етичному кодексі, який повинен включати індивідуальні та організаційні цінності, і гармонічну взаємодію, яка забезпечує стабільність і ефективність процесу управління. Цей кодекс буде виступати в якості врівноважуючої сили між різними інтересами та системами цінностей, які встановлюють загальні етичні норми поведінки.
Противодействие неэтичным действиям и влияние этического поведения на поведение человеческого фактора должны быть приоритетом политики компании. Исследования и рекомендации в этом направлении позволили наметить необходимость в этическом кодексе, который должен включать в себя индивидуальные и организационные ценности, и гармоничное взаимодействие обеспечивающее стабильность и эффективность процессауправления. Этот кодекс будет выступать в качестве уравновешивающей силы между различными интересами и системами ценностей, которые должны, таким образом, установить общие этические нормы поведения.
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E. Jordanova
132
Економічний вісник Донбасу № 4(38), 2014
UDC 005.1
Elena Jordanova,
Tsenov Academy of Economics, Bulgaria, Svishtov
IMPORTANCE OF THE CODE OF ETHICS IN THE ORGANIZATION
Unethical behavior is a complex problem that is
difficult to solve in contemporary organizations. It is
also a problem that must be addressed by all structural
levels in a particular company. Counteracting the un-
ethical actions and influencing the behavior of the
human factor towards ethical behavior must be a priori-
ty of a company’s policy. The research and recommen-
dations in this direction outline the necessity of an
Ethic code that shall comprise individual and compa-
ny values, and whose harmonious interaction shall
provide stability and efficiency of the management
process. This code shall serve as a balancing force
among the various interests and systems of values,
which shall thus establish common ethical standards
of behavior.
Eliminating unethical behavior requires strength-
ened managerial supervision and adequate reactions by
the employees (disapproval, recommendations, mentor-
ing, signals, etc.). In addition, there must be imposed
methods of sanctioning unethical behavior or praising
ethical behavior. Superiors and employees must always
work in an atmosphere of mutual understanding and
responsibility. This involves counteracting unethical
behavior and stimulating positive examples. Conform-
ing to the ethical values of the organization and the
effective application of company culture as a leading
factor in the managerial process is accepted by manag-
ers as a fact that should not be questioned. However, a
pertinent issue is also the practical application of the
idea of positive and constructive relationships in the
managerial communication. In this respect, the real
expression and application of the humanistic trend in
contemporary management can be traced in the organ-
ization strategies that increasingly apply ethical codes.
A key element of an effective managerial strategy
is the development and adoption of a comprehensive
ethical code of behavior which shall guide through
practical and unambiguous rules what the behavior of
all employees shall be. In its role of a behavior super-
visor, the ethical code regulates the ethical norms and
imposes penalties for violating them. Such penalties
must correspond to the seriousness of the violation and
must be supported by adequate administrative and legal
regulations that must be explained to the employee
upon his/her appointment in the particular organiza-
tion. The ethical code regulates the relationships
among work colleagues and their professional and
personal behavior. It also determines the ethical norms
that strengthen the trust and moral in the organization.
The ethical code aims at determining the ethical
standards of employees’ professional activity by:
- developing company culture and professional
values based on the principles of humanity and accept-
ing human rights;
- facilitating the adoption by the organization of
processes of developing a common system of values in
the conditions of globalizing economy;
- by facilitating the training of employees towards
achieving professional ethical behavior in their work
activities.
Among the underlying principles of every ethical
code, there must be values like:
• Lawfulness – the employee carries out his/her
work duties in compliance with the accepted internal
regulations of the organization;
• Loyalty – the employee cooperates towards a
state policy and in particular – company policy based
on the principles of a law-abiding state;
• Honesty – the employee, depending on the
functions assigned to him/her performs tasks, proposes
and makes decisions, aiming at eliminating unethical
behavior and strengthening the trust in the organiza-
tion;
• Objectivity – the employee performs his/her
duties objectively and diligently as he/she aims at col-
lecting, analyzing and evaluating precisely and objec-
tively all facts and circumstances related to his/her
duties without allowing the influence of personal or
external interest;
• Competence – the employee performs his/her
duties by using and applying his/her knowledge and
experience and constantly improves his professional
qualification and skills in the interest of the citizens;
• Political neutrality – the employee does not al-
low his/her work to be influenced by his own or exter-
nal political interests;
• Responsibility – the employee behaves in a
way that does not damage his/her company’s reputa-
tion, not only in carrying out his/her work duties, but
also in his/her public and private life;
• Respecting the individual – in performing
his/her duties the employee must be polite and respect-
ful to everyone, and respect the rights and dignity of
the individual without allowing any forms of discrimi-
nation;
• Clarity – the employee performs his/her work
duties in a way that allows a monitoring on his/her
actions and the results of the work done.
According to the ethical code, regarding the rela-
tionship manager-employee, the employee must act in
a way that is professional, unbiased and active in de-
E. Jordanova
133
Економічний вісник Донбасу № 4(38), 2014
veloping and carrying out managerial decisions. Per-
forming the duties in the organization must convince
the managers that the employee can be trusted and
he/she can be relied on. The employee must discuss
with the managers and his/her immediate superior
openly and honestly the problems encountered in the
process of his/her work.
The relationship employee-employee requires
trust, honesty and tolerance, which means no behavior
is accepted that will harm the dignity and rights of an
individual. The employee must be ready to help and
assist his/her colleagues in their carrying out their work
duties with his/her own competence. Employees must
strive towards preventing situations of conflict among
one another. The responsibility for honest and profes-
sional relationships among the employees is borne by
the immediate superiors. A manager must set an exam-
ple to the other employees in the administration by
performing his/her duties diligently and punctually,
and by showing high sense of responsibility.
In performing his/her work duties and in his pub-
lic life the employee must not damage the company’s
reputation and must not allow personal behavior that
does not conform to the accepted moral norms whether
inside or outside of the organization. The employee
must strive to avoid conflicts, but if such arise, he/she
must solve them in an ethical way.
The ethical code shall be followed strictly, since it
has been voluntarily adopted by all managers and
employees in the organization, as any violation to the
regulations described in it shall be considered a motive
for bringing charges of disciplinary responsibility.
Preventing the instability in managerial commu-
nication can be aided by the implementation of an
appropriate mechanism of control, which the ethical
code is. It is a lawful system of rules for ethical behav-
ior which aims at achieving sensible balance between
positive managerial communication, encouraging a
high level of team cooperation, identifying and elimi-
nating instances of violation of the norms adopted by
the organization. Basically, the code is not a norma-
tively binding act, but this does not free managers and
employees of responsibility.
Organizations’ ethical codes unite, bind and or-
ganize ethical values. They represent the beliefs and
outline the employees’ responsibilities. The organiza-
tional code of values is a system of principal priorities,
arranged hierarchically depending on their signifi-
cance. It is a sustainable structure that refers only to
the accents in the company strategy. The values in the
code are in the form of principles, general prescrip-
tions and requirements of the activity, norms and
standards of behavior.
Among the major principles that must be included
in the code of ethical behavior are: altruism, honesty
and sincerity, objectivity, responsibility, openness.
Some of the common principles that must be the
basis of ethical behavior in the organization are:
1. I will always work in compliance with the ethi-
cal principles of the organization;
2. I will perform my work duties by obeying the
law and emphasizing on the organizational values and
regulations;
3. I will be honest and loyal to the employer and
will work in favor of the team;
4. I will strive to maintain the necessary profes-
sional competence and constant improvement of my
professional skills;
5. I will conform to the requirements of the man-
agers and will accept the necessary training, new
knowledge and skills;
6. I will carry out orders and assignments objec-
tively and steadily;
7. I will recognize and follow the main aim of the
organization;
8. I will make decisions according to my compe-
tences and experience and if necessary will advise my
colleagues in a spirit of understanding and cooperation;
9. I will maintain the positive public image of the
organization.
The ethical code must be accepted and signed by
everyone employed in a particular organization. Thus
every employee will have the necessary basis of ethical
behavior and will be aware of what to expect in follow-
ing it and respectively that no behavior contradicting
the clauses of the code will be tolerated. Therefore, the
ethical code is a starting point and a necessary base for
every organization that conforms to the ethical princi-
ples and norms of behavior of its employees.
Ethical behavior must be tolerated. Measures in
this direction must be taken by managers who must set
a personal example, good attitude towards employees,
avoiding rudeness, arrogance, abuse of power. Appro-
priate behavior and just managerial decisions strength-
en trust. Such managerial decisions are the basis of the
ethical code. Conforming to them is subject to internal
control and it is useful to create an organ or unit of at
least three representatives of different levels in the
structure of the organization. They must have the role
of an ethical committee in cases of ethical conflicts and
must monitor the practical application of the ethical
code.
The currently existing ethical codes are rather
general and do not offer particular practically applica-
ble elements. In this respect the governing body must
propose and adopt clear and adequate measures that
must be stated as enforceable in the code. There must
also be mechanisms for detecting and sanctioning un-
ethical behavior, which must be developed and pro-
posed by those who are dependent on the ethical code.
As already mentioned, an Ethical committee (or a
committee of evaluating ethical behavior) must be
established. It must control the conformity to the Code
E. Jordanova
134
Економічний вісник Донбасу № 4(38), 2014
of ethical behavior and applying its principles. This
time it may be a three-member committee with the
following functions:
- to work objectively;
- to follow the adopted in the ethical code
measures;
- to maintain a high level of ethics in the organiza-
tion;
- to strengthen the company’s values and culture;
- to monitor and evaluate the behavior of the man-
agers and employees in either ethical or unethical way;
- to propose measures that can lead to more effec-
tive ethical actions;
- to inform about the made decisions concerning
the employees performing their work duties in an ethi-
cal way;
- to receive signals about ethical and unethical be-
havior and to act appropriately according to the law
and moral.
The committee chooses among everyone in the
organization and reports to everyone at a general as-
sembly.
The ethical mechanisms and the efforts of the eth-
ical committee for monitoring ethical behavior will be
successful only if they are supported by the governing
body and the company culture. One of the means of
supporting the ethical behavior is the establishment of
a structural mechanism of ethics management.
The principal objectives of a structure, such as the
ethical committee, are as follows:
- to advise the governing body on ethical posi-
tions;
- to monitor staff about ethical behavior;
- to inform about ethical violations;
- to carry out ethical policy;
- to persuade towards professional ethics.
The establishment and confirmation of the code is
a process that calls for training, being concrete about
encouragement and punishment, mechanism of filing
complaints and registering violations of ethical behav-
ior in the organization. The role of such a mechanism
accepts the ethical committee within the framework of
the organization which has the rights to consider the
separate cases and to impose measures described in the
code.
The ethical code is a tool for introducing clear
ethical parameters for influencing and regulating the
behavior of the employees in the particular organiza-
tion. Honesty, justice and politeness form the moral
basis, which along with the mutual interest in the or-
ganization are the fundaments of the ethics. Among the
managerial decision and the ethical behavior exists a
strong bond and management is impossible to exist
without ethics. The ethical code is a dynamic document
that has to take into account the constant changes in the
contemporary business world, as well as the specificity
of the particular organization and the already existing
company culture.
The efficiency in the ethical code is expressed
mainly in:
− its uniting effect on the human factor – it aris-
es from the shared ideals, from the sense of availability
of common managerial beginnings in the activity;
− strengthens trust and loyalty;
− creates clarity and correct orientation in work
activities;
− forms common criteria of evaluation;
− has a positive effect on the company image
and facilitates its long-term success.
The ethical code must be accepted by everyone
and employees must behave in compliance with it. The
code, as a common principle of appropriate ethical
behavior, contributes to a better and more effective
managerial process through overcoming difficulties
and conflict situations, as well as finding decisions
when various ethical dilemmas arise.
Ethical codes are transformed from ordinary doc-
uments in theory to practical means of training, educa-
tion and communication. They are the most visible
indication of the ethical philosophy of the organization.
In order for the ethical code to be applicable and mean-
ingful, there must be a clear outline of the rules and
ethical requirements. The employees’ expectations
regarding their ethical behavior must be realistic and
the solution of potential ethical dilemmas must lead to
specific results in favor of ethics. Employees are pre-
instructed with the contents of the ethical code; they
can choose and realize that they must conform to it.
This means that the content of the code must be care-
fully developed by taking into account the various
systems of values, company aims, strategy and speci-
ficity of the organization. In order to be effective, ethi-
cal codes must be created openly, with the participation
of more interested people, as everyone asks questions
and makes propositions. In some organizations, man-
agers encourage the separate units to have their own
codes of solving specific ethical dilemmas. This
strengthens the influence and importance of ethical
behavior in the organization. In the contemporary eco-
nomic and social reality the necessity of ethics in the
relationships is being realized more and more both in
the public and private sector.
The dynamic economic environment faces com-
pany managers with the ethical dilemma: whether they
should be ethical role models or whether they should
yield to the pressure of the situation and the circum-
stances and act according to their interests and material
profit. This is a major ethical issue of the contemporary
society. There is no doubt, however, that the high ethi-
cal standards are positive factors for long term devel-
opment.
E. Jordanova
135
Економічний вісник Донбасу № 4(38), 2014
Йорданова Е. Важливість етичного кодексу
для організації
Протидія антіетичним діям и вплив етичної
поведінки на поведінку людського фактору повинні
бути пріоритетом політики компанії. Дослідження
та рекомендації в цьому напрямку дозволили
намітити необхідність в етичному кодексі, який
повинен включати індивідуальні та організаційні
цінності,і гармонічну взаємодію, яка забезпечує
стабільність і ефективність процесу управління.
Цей кодекс буде виступати в якості врівноважую-
чої сили між різними інтересами та системами цін-
ностей, які встановлюють загальні етичні норми
поведінки.
Ключові слова: етичний кодекс, поведінка,
відношення, зв’язки.
Йорданова Е. Важность этического кодекса
для организации
Противодействие неэтичным действиям и вли-
яние этического поведения на поведение человече-
ского фактора должны быть приоритетом политики
компании. Исследования и рекомендации в этом
направлении позволили наметить необходимость в
этическом кодексе, который должен включать в
себя индивидуальные и организационные ценно-
сти, и гармоничное взаимодействие обеспечиваю-
щее стабильность и эффективность процесса
управления. Этот кодекс будет выступать в каче-
стве уравновешивающей силы между различными
интересами и системами ценностей, которые долж-
ны, таким образом, установить общие этические
нормы поведения.
Ключевые слова: этический кодекс, поведение,
отношения, связи.
Jordanova E. Importance of the code of ethics
in the organization
Counteracting the unethical actions and influenc-
ing the behavior of the human factor towards ethical
behavior must be a priority of a company’s policy. The
research and recommendations in this direction outline
the necessity of an Ethic code that shall comprise indi-
vidual and company values, and whose harmonious
interaction shall provide stability and efficiency of the
management process. This code shall serve as a balanc-
ing force among the various interests and systems of
values, which shall thus establish common ethical
standards of behavior.
Keywords: ethical code, behavior, relationships,
communication.
JEL: M14
Received by the editors: 28.10.2014
and final form 23.12.2014
|
| id | nasplib_isofts_kiev_ua-123456789-87635 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 1817-3772 |
| language | English |
| last_indexed | 2025-12-07T15:54:47Z |
| publishDate | 2014 |
| publisher | Інститут економіки промисловості НАН України |
| record_format | dspace |
| spelling | Jordanova, E. 2015-10-22T09:34:47Z 2015-10-22T09:34:47Z 2014 Importance of the code of ethics in the organization / E. Jordanova // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 132-135. — англ. 1817-3772 https://nasplib.isofts.kiev.ua/handle/123456789/87635 005.1 Counteracting the unethical actions and influencing the behavior of the human factor towards ethical behavior must be a priority of a company’s policy. The research and recommendations in this direction outline the necessity of an Ethic code that shall comprise individual and company values, and whose harmonious interaction shall provide stability and efficiency of the management process. This code shall serve as a balancing force among the various interests and systems of values, which shall thus establish common ethical standards of behavior. Протидія антіетичним діям и вплив етичної поведінки на поведінку людського фактору повинні бути пріоритетом політики компанії. Дослідження та рекомендації в цьому напрямку дозволили намітити необхідність в етичному кодексі, який повинен включати індивідуальні та організаційні цінності, і гармонічну взаємодію, яка забезпечує стабільність і ефективність процесу управління. Цей кодекс буде виступати в якості врівноважуючої сили між різними інтересами та системами цінностей, які встановлюють загальні етичні норми поведінки. Противодействие неэтичным действиям и влияние этического поведения на поведение человеческого фактора должны быть приоритетом политики компании. Исследования и рекомендации в этом направлении позволили наметить необходимость в этическом кодексе, который должен включать в себя индивидуальные и организационные ценности, и гармоничное взаимодействие обеспечивающее стабильность и эффективность процессауправления. Этот кодекс будет выступать в качестве уравновешивающей силы между различными интересами и системами ценностей, которые должны, таким образом, установить общие этические нормы поведения. en Інститут економіки промисловості НАН України Економічний вісник Донбасу Management Importance of the code of ethics in the organization Важливість етичного кодексу для організації Важность этического кодекса для организации Article published earlier |
| spellingShingle | Importance of the code of ethics in the organization Jordanova, E. Management |
| title | Importance of the code of ethics in the organization |
| title_alt | Важливість етичного кодексу для організації Важность этического кодекса для организации |
| title_full | Importance of the code of ethics in the organization |
| title_fullStr | Importance of the code of ethics in the organization |
| title_full_unstemmed | Importance of the code of ethics in the organization |
| title_short | Importance of the code of ethics in the organization |
| title_sort | importance of the code of ethics in the organization |
| topic | Management |
| topic_facet | Management |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/87635 |
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