Introduction
In every company worth its salt, there are a set of ethical guidelines that every employee must follow that is consistent with the norms of the society and the visions of the goals of the company itself. This is more commonly known as the code of ethics, and they are not only useful in determining the goals, values, and mission of the company; they are also invaluable in decision-making in the company and negotiating regarding personal and organizational issues. In other words, the code of ethics can be described as the guideline of the company in general. Therefore, it is important that every employee is aware of the code of ethics that his or her company follows so as to work ultimately towards the company’s goal while avoiding any pitfalls that can put the company’s reputation on the line.
An example of a company with a clear-cut code of ethics is the Depository Trust and Clearing Corporation (DTCC). Since it is a company that deals and specializes in financial services, knowing the company’s Code of Ethics is very important. A person’s money should be handled by people and services whom they trust, and DTCC’s Code of Ethics aims around this goal—to build trust and reputation among its clients so that they can continue transacting with the company. Examining this company’s code of ethics can reveal may things such as how is it affected by society’s values, how it influences decision-making, and how legal and ethical issues can be differentiated.
DTCC Code of Ethics
The DTCC Code of Ethics, basically, is grounded on some major points. These points include: acting in good faith and in the best interests of the customers, avoiding conflicts whenever possible, following a certain procedure in case conflicts arise, complying with the laws and reporting any infractions, seeking assistance, and being held accountable in following the Code (“DTCC Board Code of Ethics”, n.d.)
First, the company stresses acting in good faith as one of its primary goals. Being a financial company, this is a must to ensure trust between the client and the company. Acting in good faith implies that the company is working towards the best needs of the customer ultimately, and that includes complete confidentiality of all transactions and information.
The Code of Ethics also prescribes some guidelines that work towards avoidance of conflict as much as possible. In case one arises, however, they will work on resolving that conflict in a manner that is consistent with the ethics and values that the company follows.
Because the company specializes in financial services, they are highly susceptible to legal issues. Therefore, the Code of Ethics prescribes rules that allow its customers to work in adherence to the law. Furthermore, they deal with violations promptly and accordingly in order to maintain the reputation of the company.
Finally, the Code of Ethics serves as a guideline for the actions of the company in general. They also uphold accountability in following to the code, because it is believed that when it is followed, the company will act according to the benefit of all parties involved.
DTCC Code of Ethics Issues
After examining the Code of Ethics, there are some points that can be made about it. Some of these are discussed below.
While the Code is ultimately grounded on ethical and moral values, it cannot be denied that society plays a part it in influencing it. One obvious example is that the company implicitly tries to maintain its reputation with the society as healthy as possible. Acting in best interests, avoiding conflict, following the law, and the like are ways in which the company can build and maintain their reputation. This is understandable; reputation is essential not only for the company to make new clients, but also to retain the old ones.
As mentioned earlier, the ethics that the company follows plays a hand in personal and organizational decision-making. Whenever the company makes a decision, they must consider if they violate any ethical code, because doing so will damage the company’s reputation which is not good for the company in the long run. Similarly, this is the case when it comes to personal decisions. An employee must see to it that any decision they make will benefit to the interest of the company and the client. Failure to do so will mean that they are not in accordance with the company’s rules, and can be a grounds for termination.
Legal and Ethical Issues
Basically, legal means in ‘in accordance with the law’, while ethical means ‘corresponding to a code of ethics’. Since the law is closely associated with ethics, the two are often interchangeable. However, there are times when the legal option is not an ethical one, or an ethical issue does not sit well with the law. In such cases, a compromise must be reached in order to make decisions that will ultimately be considered ethical while being constrained legally.
Reference
DTCC (n.d.). DTCC Board Code of Ethics. Depository Trust and Clearing Corporation. Retrieved from http://www.dtcc.com/code-of-conduct