Importance Of Code Of Ethics

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2.4 The Purpose of the implementation of Codes of Ethics of the Directors in Corporate Governance. At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, directors code of ethics take center stage as a major concern of the modern era as most of the business are dealing with an international business. The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure.…show more content…
Code of ethics of the director’s aims to establish a standard of ethical behavior for directors based on trustworthiness and values that can be accepted, are held or upheld by any one person. In order to uphold the spirit of self and social responsibility in line with the legislation, regulations and guidelines for administrating a company the stated codes of ethics is established. In adopting the code of ethics, the company will recognized the vital importance of the company in conducting their business that subjected to the highest ethical standards and in full compliance with all applicable laws and, even where not required by law, with the utmost integrity and honesty. 2.4.2 Act as a guidance to the Directors The most important things is that, the purpose of the establishment of the Code of ethics is that to provide guidance to Directors to help them recognize and deal with ethical issues, to provide mechanisms to report unethical conduct, and to help to foster a culture of honesty and accountability. Codes of ethics also can ensure the discipline of the directors. 2.4.3 Act as the Philosophy of an…show more content…
The, employee ethics within a company will increase their productivity because they can make a good decision making in less time with business ethics as guiding principles. The whole organization will be benefited when their employees completed work which based on integrity and honesty. An ethical employee is more likely will stay loyal to an organization. Awareness of obligation as well as moral duties towards the organization can be gain by the employees through the implementation of code of ethics within the
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