INTRODUCTION
Every company in the US needs to design its codes of conduct in the consideration of Federal Sentencing Guidelines for Organizations (FSGO). It provides an ethical environment to the organization which drives the behavior of employees at the workplace. The report provides an overview of the code of conduct of Quick store. Quick store is a merchandising company and has its retail stores in many states of US. The codes of conduct of three different stores will be discussed to design the code of conduct for Quick store. The factors that can influence the code of conduct of the company will be discussed in the report along with the challenges in the application of codes of conduct in the company.
The company established its first store in US. Now the company has 30 stores in ten different states of US. The specialty of the company is merchandising. It is medium size company and operates in US. Company is operating successfully for many years in US and presents itself as the best service provider, and making maximum convenience for customers by its services. Management of the company is extremely effective in dealing with all its consumers and builds a strong relationship to retain them for a long term.
This report discusses the codes of conduct of other three companies that are operating in the same industry that Quick store needs to use as benchmark. An analysis and critique of these codes of conduct have also been provided in the report. After reviewing the codes of conduct of the competitors, the report also presents code of conduct for Quick Store as well. Rationale for the code of conduct presented has also been discussed in the report. The next section of the report then analyzes the influence of federal sentencing guidelines on company’s ethical program. Challenges in the codes of conduct have also been highlighted. Conclusion is presented at the end of the report.
BENCHMARKING THE CODE OF CONDUCT OF THREE COMPANIES IN THE SAME INDUSTRY
Action links codes of conduct:
- Discrimination and harassment prohibited:
Any kind of sexual harassment is not tolerable in the company. No one has the authority to introduce the discrimination factor in the workplace.
- Attendance & punctuality:
All employees are expected to come on time, absence and late comings will not be tolerable. If the employee has a problem with it then he/she must discuss with the manager.
- Employment of relatives:
This code means to not allow any manager to hire his/her relative. The hiring will be entirely based on the merit of the applicant (Action Link, 2008).
- Safety and Proprietary information/confidentiality:
All the safety and health laws will be followed by the company and giving employees’ safety and healthy environment. The confidentiality of information is the responsibility of every employee, in case of breaking this law employee will be fired (Action Link, 2008).
- Smoking policy:
Employees are permitted to smoke outside the building in some specific times (Action Link, 2008).
- Rehire policy:
Company provides the opportunity for good performers of rehiring them through a process.
- Salary increment:
Salary of employees will be increased completely on the basis their performances (Action Link, 2008).
TJX Group Inc code of conduct:
- Diversity:
All employees are committed to develop an environment of inclusion and promoting work place diversity in the company (TJX, 2011).
- No discrimination:
All employees are evaluated and promoted on the basis of their qualification and skills. No discrimination is allowed to any person with any designation in the organization. The elements of discrimination include: race, color, religion, sex, age, national origin, disability, gender identity or expression etc (TJX, 2011).
- No sexual harassment:
Sexual harassment is not acceptable at any cost at the workplace. If any person is involved in this crime then the company has right to punish him/her (TJX, 2011).
- Associate wage and hour rules:
The company will follow all the labor wage and working hour laws that have been imposed by the government. Overtime is paid in case of extra work after working hours (TJX, 2011).
- No violence in the work place:
TJX has imposed strict laws for avoiding the violence at the workplace. Serious action will be taken in case of any violence by any person (TJX, 2011).
Wal-Mart’s code of conduct:
- Dignity and respect:
Every individual will be respected at the workplace. The company will be fair and courteous in all of the interactions at the workplace. The basic believe of Sam Walton’s is ‘Respect for individual’ and policies are designed in the presence of this believe (Wal-Mart, 2005).
- Non-Discrimination:
Wal-mart will not tolerate the discrimination in employment on the basis of age, sex, color, religion, disability and race etc (Wal-Mart, 2005).
- Harassment and inappropriate conduct:
Wal-Mart will not tolerate any kind of harassment whether it is directed to the co-worker, vendor and customer. Verbal, visual or physical conduct of a sexual nature is not acceptable at the workplace (Wal-Mart, 2005).
- Privacy:
Wal-mart is responsible for maintaining the privacy of employees and customers information. The confidential information of the company can only be searched by the authorized persons (Wal-Mart, 2005).
- Wage and compensation:
Every worker and employee will be paid according to the commitment by the company. No one would work without compensation. A proper compensation will be provided by the company (Wal-Mart, 2005).
Critique the code of conduct of three companies:
The case of Damarys Meza Guillen was an example of Wal-Mart’s miscode of conduct. The girl was working more than its duty hours to complete the task, but overtime was not paid by the management for extra work (Raman, 2006). However such news about the miscode of conduct at Wal-Mart are very few. Wal-Mart has very attractive and appropriate codes of conduct and Wal-Mart is implementing it with complete responsibility. At TJX Inc, codes of conduct are followed in a very proper manner. Codes of conduct of TJX are extremely protective and effective in every aspect of the organization. Action link organization is commanding its employee with accurate set of rules and policies. Their policies are tough, and the environment is very restricted, so the chances of violation of rules are very fewer.
CODE OF CONDUCTS FOR QUICK MART:
- Respect of employees at workplace:
Each and every employee should be respected at the workplace; no one is allowed to insult any other person on the workplace.
- Safety and security of employees:
Safe and healthy environment will be provided to the employees. Job security will be provided to increase the level of employee’s satisfaction.
- Salary and compensation:
Salary will be provided according to the commitment by the company. No changes will be made without consulting with the employees.
- Harassment at duty time:
Any kind of harassment at the workplace will not be tolerated, if any employee found involve in this crime then serious action will be taken by the management.
- Discrimination:
Discrimination is not allowed on the basis of race, age, gender, religion, national origin, disability, etc.
- Confidentiality:
Company is responsible for the secrecy of employees and customers’ information, and employees are not allowed to disclose the confidential information of the company to outsiders.
- Smoking policy:
Smoking is injurious to health therefore smoking is strictly not allowed in the premises of the company.
- Telephone use:
Telephones of the company will be used only in the interest of the company. In case of emergency employees are allowed to use the telephone for personal use.
- Child labor:
Child labor is not allowed, the laws by the government about the child labor will be followed by the company.
- Bribery and corruption:
Any employee is caught in case of bribery and corruption then legal action will be taken by the company.
Rationale For The Code Of Conduct:
The code of conduct of the company is designed to provide the safety and security to employees, safety and security is very beneficial to drive the behavior of employees at the workplace (Otto Group, 2012). Code of conduct of Quick store will provide the standards of ethics or in other words it will provide standards for an employee’s behavior at the workplace. Code of conduct gives the secured environment to the organization as well in terms of safety and security of organizational procedures. For example, information confidentiality should be maintained by the employees etc. Code of conduct actually designs the ethical environment of the organization.
INFLUENCE OF FEDERAL SENTENCING GUIDELINES ON COMPANY’S ETHICAL PROGRAM:
United States Sentencing Commission has propagated guiding principles to direct the obligation of sentences by Federal Judges on organizational defendants. According to the Federal Sentencing Guidelines for Organizations (FSGO), insensitive penalties are imposed on organizations in which workers or other representatives have committed federal crimes. Penalties include compensation, corrective orders, social service, and extensive fines, based upon a point system for determining harshness of offense. The guidelines are designed to encourage organizations to create an effective system to avoid and detect the violations of law. The guidelines are the setting standards by which organizations can evaluate their behavior and environment by comparing it with the federal sentencing guidelines (Ethics Resource Center, 2005).
CHALLENGES IN CODES:
- At some stages codes of conduct weaken the moral independence by making the employees habitual from motives like deference to the external authority and fright of punishment.
- Sometimes business faces some complex situations or new situations that have never faced before, employees face difficulties in meeting those situations for which guidelines are not clear.
- The codes of conduct sometimes become constraints in a way that it only habituates the employees to strive only to maintain minimum standards of conduct (Frey, and Cruz-Cruz, 2013).
INFLUENCE OF CHANGING PESTC ON BUSINESS ALONG WITH ASSURANCE OF DESIGNED CODE OF CONDUCT IN FUTURE:
Political:
This factor considers the changes in government policies and regulations can influence the business activities.
Economical:
This factor considers the changing in economic conditions can influence the business. For example, increase in interest rate will decrease profit margins or increase the cost of the company.
Social:
Taste and preferences of society is continuously changing that can influence the business performance. For example, changing fashion in the clothing industry.
Technological:
Technological advancement is the consistent phenomena; businesses are adapting it for many reasons. For example, cost reduction with more automation, latest innovations, new inventions etc.
Culture:
It includes the attitude and believes of people of society that can influence the company’s product/service.
The codes of conduct of Quick store are designed with the consideration of using it for a long term. These are structured as standards to provide the policies to the company. The codes of conduct are structured in a way that the changing environment can not influence much on it. The codes of conduct have the capacity to being adjusted with the changing environment.
CONCLUSION:
All the factors that can influence the code of conduct of a company are discussed in the report. The codes of conduct of three large stores have discussed to design the code of conduct for the Quick store. Challenges faced by the company during the implementation of codes have also discussed with its drawbacks. The code of conduct will provide a consistency in ethical behavior of employees for a long term.
References
Action Link. (2008). Full –time Employee handbook. Retrieved August 26, 2013 from http://www.actionlink.com/newhireforms/employee_handbook-actionlinkonline_08-2008.pdf
Raman, S. (2006). Wal-Mart workers critique labor conditions. Brown Daily Herald, Retrieved August 26, 2013 from http://www.browndailyherald.com/2006/02/08/walmart-workers-critique-labor-conditions/
Ethics Resource Center. (2005). Federal Sentencing Guidelines. Retrieved August 26, 2013 from http://www.ethics.org/resource/federal-sentencing-guidelines
Frey, W., and Cruz-Cruz, J. (2013). Developing Ethics Codes and Statements of Values. CNX, Retrieved August 26, 2013 from http://cnx.org/content/m14319/1.10/?format=pdf
TJX. (2011). Global Code of Conduct Guide. Retrieved August 26, 2013 from http://www.tjx.com/files/pdf/coc_june_2010_distribution.pdf
Otto Group. (2012). Code of Conduct. Retrieved August 26, 2013 from http://www.ottogroup.com/en/die-otto-group/strategie/corporate-responsibility/lieferanten/code-of-conduct.php
Wal-Mart. (2005). Statement of ethics. Retrieved August 26, 2013 from http://media.corporate-ir.net/media_files/IROL/11/112761/corpgov/Ethics%20_Current.pdf
