A. Introduction
Bright Star Corporation seeks to develop a code of ethics that will guide the management in making decisions and setting standards for the interaction of stakeholders, employees, and clients. The code of ethics will also protect the organization’s reputation and help in handling legal proceedings (Parboteeah & Cullen, 2013). Ideally, the code of ethics will showcase the company's credibility and help it to build a good reputation.
I. Code purpose statement
The purpose of the code of ethics is to develop a uniform knowledge that ensures standard interaction among workers from different departments within the organization. The code of ethics doesn't aim at offering a comprehensive and exhaustive list of the behaviors to follow. Instead, it's a general structure that will assist the employees to determine the right actions to take in different situations.
II. Core belief statement
The Bright Star Corporation values include holding integrity when dealing with clients, pursuing openness in its operations, embracing and driving change, and creating learning opportunities for stakeholders and employees. The significance of the core beliefs is to ensure the corporation realizes its mission and vision.
B. Background
I. Occurrence of a crisis
The company experienced a crisis in 2015 that calls for the development of a code of ethics. An employee in the finance department accepted a bribe which is against the Bright Star values.
II. Process of developing the code
Bright Start Corporation will follow the standard procedures to develop the code of ethics. According to Shepard & Mani (2014), the process of formulating a code of ethics has six steps including; getting all the necessary information, developing a draft copy, analyzing the draft, adopting the draft, and implementing.
Getting necessary information
A committee will be structured to collect ideas on the proposed code of ethics. The committee will start by evaluating the company’s values. Also, it will analyze some code of ethics developed by other enterprises in the same industry. The committee will also examine the state laws and how they affect our corporation. Adhering to the state laws will also ensure we treat our employees fairly. Other factors include the past ethical dilemmas and environmental factors that influence our business.
Developing a draft
After collecting all the necessary details, the committee will prepare a draft. Since the code should be value based, the committee is encouraged not to invite an attorney. The code is merely a list of what employees should do. Most importantly, the council is urged to use positive language rather than negative language. This process will include identification of vital topics, and defining the fundamental principles.
Analyzing the draft
After creating the draft, the committee with thoroughly examine and make the necessary amendments. The aim is to ensure it will suit the needs of the employee without affecting their operations. A “Test Drive” will determine the effectiveness of the code (Stack, 2012). The committee will submit the copy to a group of workers and their feedback incorporated into the final draft. Further, the top management of Bright Star Corporation will get a copy of the code to evaluate its suitability.
Adopting the draft
The committee will present the code of ethics to Bright Star Corporation’s board. After the presentation, the board will approve the code of ethics formally and include it in the organization's operations. However, the final decision of adoption of the code of ethics will come from the upper management.
Introducing the draft
After approval, the code of ethics will be introduced to the workers during an open forum. However, the introduction and implementation will start from the top management of Bright Start Corporation. During the introduction, all employees will get a copy of the code.
III. Place that the ethics take in the compliance program
In the program of conformity, the code of ethics takes the place of restricted behaviors and punishments that apply to misconduct. Additionally, it will address the penalties that apply in case an employee is found engaging in unethical behavior such as accepting bribes, committing internal theft, or love relationships among workers.
C. Training and education
I. Ethics compliance description for training and education
Bright Star Corporation endeavors to train and educate all its employees on the drafted code of ethics. The training will be open to all workers to ensure they understand the various sections. Also, the company will ensure all employees are aware of the seminar time and also ensure the entire staff attends the training.
II. Related training and education
The relevant training and teaching include what to do, what employees will do if they find fellow employees engaging in an unaccepted act, and how to report misconduct. The employees will also learn how to defend themselves when answering cases involving unethical conduct. Also, workers will know the possible punishments and penalties that will apply to wrong actions.
III. Staff responsibility
The Bright Star Corporation staff is responsible for executing the program. The management will develop an ethics department to help educate and train the employees. The ethics commission will consist of an ethics manager, and four members to assist in executing the program. The department has the responsibility of planning the training dates, coordinating the meetings and ensuring all members get an updated copy of the code.
IV. Executives charged with responsibility of overseeing the training program
The Bright Star management will control and coordinate the operations of the ethics department. Also, the company CEO will appoint one member of the broad to work with the ethics commission. The board member will attend meetings of the ethics department and ensure the training runs as per the company’s goals and mission.
D. Employee coverage
I. Procedure for ensuring employees understand the provision of the ethics
The company will perform a mock trial to evaluate how employees perceive the new code of ethics. The IT department will upload a copy of the code of ethics on the company’s website so that the staff can access it from anywhere. Also, there will be a copy of the code on the corporation’s notice board to make sure employees see it each day when they report to work.
II. Procedure of training course geared towards implementing code of ethics among employees
The training process will involve the use of seminars, talks, and peer-to-peer training. The ethics commission will hold workshops in the company premises where they will invite all employees. The frequency of these workshops depends on the understanding levels of the employees.
III. Personal copy will be given to employees for compliance
As discussed above, all employees will have their copy of the code; it can either be soft or a printed copy. This measure will encourage the employees to read the compliance and even promote understanding.
E. Communication and implementing the code of ethics
I. Lay the necessary foundation for communicating the program
The communication program will follow the company’s constitution and the state laws. The ethics commission will collaborate with the upper management, ethics experts and the employees to communicate the program.
II. Advice, the employees, and agents, to always go for advice
All Bright Star Corporation employees are advised to seek advice when they face ethical situations. Also, if an employee is unaware of various ethical situations around the company setting, they can get advice from the ethics department. Additionally, if a worker doesn’t know how to interpret and apply a certain clause in the code, they are welcomed to seek for advice.
III. Employees encouraged on ways of reporting forms of misconduct
The ethics department will train the employees on the various ways that they can use to report fellow worker’s misconduct. Jennings (2015), notes that anonymous reporting is among the best methods that employees can use. Bright Star Corporation will encourage its employees to report fellow workers anonymously to avoid conflicts. However, an employee should submit their phone number and address when reporting misconduct. Nevertheless, employees who want to disclose their identity when reporting misconduct can do so, but adhere to the company’s constitution. The company will offer various ways through which employees can report ethical actions such as web portal, personalized email addresses, fax, and suggestion box (Walker, 2016). An employee can also report misconduct directly to the ethical manager.
IV. Give description to the process, plus the conditions under which the employees are permitted to call confidentially
An employee who wishes to report a fellow worker should first provide the background of the concern and offer specific dates of the occurrence. Second, the employee should provide a reason as to why he/she is interested in the situation. Additionally, employees who report ethical situations should offer their address and phone number for further investigation.
V. Tracking performance of the firm and reporting to the stakeholders
Bright Star Corporation will implement various monitoring systems to help monitor unreported cases. These systems include surveillance cameras, computer recording software and phone recording systems. All the information recorded from these systems will pass through scrutiny and then forwarded to the stakeholders.
VI. Process of dispute resolution and modification of the program
Any member of the company who engages in misconduct activity will have to present himself/herself to the ethics committee. Then the board will share the evidence after which the member will defend him/herself. If the evidence is not substantial, the member will not undergo punishment. However, if the evidence is strong, members will be punished or warned.
VII. Modification process established to make the program efficient
Changes are allowed if the code violates rights of the employees or if it contradicts the state laws. Also, the code of ethics will be amended if the state introduces new legislation.
F. Supportive policies and procedures
I. Policy for monitoring and auditing
The verification of the code of ethics is based on the number of misconduct cases reported by the employees or ethics department. If few cases of misconduct are reported in a particular period, then the program is effective. However, if the number of ethical cases reported remains unchanged or continues to increase, the program may not be effective.
II. Laying a foundation for accessing the performance
Members of the company will have a chance to give opinions on the achievement of the code of ethics. The integrity manager will continually review resolution files to determine the performance.
III. Procedures and policy for investigation
The advisory manager will examine the evidence presented by employees or captured through the tracking devices. Also, there will be an interrogation of the affected employees before a making a decision.
IV. Matters related to specific procedures on investigation of the code of ethics.
During the inquiry process, the particular employee or member who faces misconduct will not be informed. By doing so, the worker’s output will not be affected. Additionally, the ethics department will have a humble time to handle the investigations.
V. Confidentiality agreements.
An employee who informs on a fellow worker will sign a confidential form to ensure the information is kept secret. The ethics manager will also agree to keep misconduct cases secret to avoid retaliation from the employees.
G. Supporting resources
I. Presents readily access to the most significance supporting articles and fast materials used for referencing.
The ethics development committee has to provide supporting resources to ensure full understanding and smooth implementation of the code. The committee should present the material used in referencing such as articles, journals, and other materials.
II. Provision of an index in case the code of ethics is extremely complex.
In a case of complex language, there should be an index to promote understanding. The indexing will offer alternatives phrases to support the particular section of the code.
III. Present online resource links and case studies.
If the material used is available online, the commission should offer links that will facilitate fast access.
Evaluation Section
A. Stakeholders
I. Close involvement of the stakeholders in shaping of the evaluation process
Bright Star Corporation management will work closely with the ethics committee and stakeholder in shaping the assessment process. The advisory manager will represent the entire commission, elected board member will represent the management and the stakeholders' can choose a representative.
II. Availing relevant documents to the stakeholders regarding the code of ethics
The stakeholders' will receive all the relevant details regarding the evaluation process. These include materials used in resolving previous misconduct and professional ethical papers from other organizations.
III. Clear communication to stakeholders regarding the significance of the evaluation
Also, Bright Star Corporation endeavors to offer clear communication to the stakeholders concerning the importance of the assessment process and how it can improve the company’s productivity.
B. Strategic, ethical formulation
I. Environmental scanning
The management will analyze the company's environment to identify and address some of the factors that can affect the performance of the code. There will be changes in the office layout to adopt open office system.
II. Continuous implementation
Implementation of the code of ethics is will be continuous to ensure effective adoption. There will be implementation at each stage of the planning process. Also, all new employees will undergo training to ensure they comply with the set goals and values.
III. Value assessment
There will be a constant examination of the Bright Star Corporation values and culture to determine how it affects the code of ethics. Additionally, the organization’s philosophy of operation will be analyzed alongside the code of ethics.
C. Strategic and ethical implementation
I. Appointment of the Officers responsible for the ethics and compliance
As discussed earlier in this paper, there will be the formation of a committee to develop the code and also handle all the necessary amendments. An ethics department will implement and oversee the adoption of the code of ethics. One member of the board, named by the management will be part of the ethics committee.
II. Tasks of the Advisory broad with regards to supervision and powers in decisions.
The ethics and advisory committee will also handle disputes and pass punishments. These committees will also report the progress to the overall manager.
III. Establishment of internal functions for the ethical auditing with regards to financial activities related to the implementation
The duties of the ethical auditing with regards to finance activities include allocating training money, planning for the allocated money, and preparing reports on expenditure.
IV. Establishment sustainability reporting activities regarding measure of environment and economic impact
The ethics committee will monitor environmental factors that affect the implementation of the code. Then, the committee will report such activities to the upper management which will take the necessary actions.
D. Ethical monitoring and mechanisms
I. Identification of all the indicators that would signify presence of change with regards to operation
The control mechanism involves recording the number of misconduct cases reported in a particular period. Few cases will mean changes in behavior and efficient adoption of the code. The ethics department is responsible for monitoring the progress and changes in operation.
II. Individuals responsible for indicators monitoring, their functions and importance in the process of evaluation
The individuals responsible for controlling the program include the ethics department, one member of the board, and the stakeholders. These parties will monitor, investigate and punish employee’s misconduct.
III. Summary report for strategy
Reporting of employee misconduct should be in line with the company’s constitution and state laws. Most importantly, all the individuals responsible for indicators monitoring should exhibit integrity and professionalism.
IV. Phase reports for lessons learned
The stages of reporting include reporting, investigation, interrogating the affected employee, defense, and decision making.
E. Ethical performance
I. Achievements for the program with regards to the goals set
Bright Star Corporation will experience an increase in production if the code is adopted effectively. Achievements also, include meeting deadlines, getting new and retaining the existing clients.
II. Compliance of the stakeholders to the functionality of the program
Conformity of the stakeholders, as well as the employees, is vital for the efficient functionality of the program.
III. Consumers, feedback regarding how the program helps meet their needs
Additionally, customer feedback is critical in determining the effectiveness of the code. Customer feedback will also help Bright Star Corporation improve service delivery.
IV. Further opportunities arising from the program
Bright Star Corporation is keen to note any opportunities that result from the code of ethics. Some of these opportunities include changes in organization structure, improvement in customer relation and various ways of monitoring misconduct among employees.
Conclusion
The code of ethics developed above will help Bright Star Corporation achieve its goals. However, for the system to be efficient there will be an ethics committee to drive the implementation and adoption process. This committee will also solve disputes and punish those who engage in unethical actions. Importantly, effective execution and acceptance will lead to few cases of misconduct, and an increase in the company’s production.
References
Jennings, M. M. M. (2015). Cengage advantage books: Foundations of the legal environment of business. United States: South-Western/Cengage Learning.
Parboteeah, P. K., & Cullen, J. B. (2013). Business ethics. New York, NY: Routledge.
Shepard, B. C., & Mani, P. S. (2014). Career development practice in Canada: Perspectives, principles, and professionalism. United States: Canadian Multilingual Literacy Centre.
Stack, L. (2012). The Customer Code of Ethics: Embracing the Service Attitude. Cottoncreek, Drive: United States
Walker, S. (2016). Top 6 ways to encourage your employees to report misconduct. Retrieved April 4, 2016, from i-sight <http://i-sight.com/resources/6-ways-to-encourage-your-employees-to-report-misconduct/>
