First of all, the Code of Conduct that TESLA utilizes is made up of multiple important sections, describing major business ethics the company sees important to have covered. These sections include:
- Conflicts of Interest
- Insider Trading
- Corporate Opportunities
- Competition and Fair Dealing
- Discrimination and Harassment
- Health and Safety
- Record-Keeping
- Confidentiality
- Protection and Proper Use of Company Assets
- Payments to Government Personnel
In short, these mentioned parts of TESLA’s code of conduct include what the company views as ethical and unethical behavior and describes how they expect their stakeholders to behave in all these situations that might occur.
Some major ethical issues explained in the code of conduct…show more content… It does not cover every issue that may arise, but it sets out basic principles to guide all employees, directors and officers of Tesla Motors, Inc, (the "Company"). All of our employees, directors and officers must conduct themselves accordingly and seek to avoid even the appearance of improper behavior. The Code should also be provided to and followed by the Company's agents and representatives, including consultants.’
It also explains that when any behaviour that may be considered unethical, there are certain actions a stakeholder can perform.
TESLA warns their employees by saying if they do not follow this code of conduct that ‘Those who violate the standards in this Code will be subject to disciplinary action, up to and including termination of…show more content… Mainly through their CEO and senior officials, whom on top of the general code of conduct, are additionally bound to a code of conduct especially focused on them, called the Code of Ethics for CEO and Senior Financial Officers.
In this code, multiple ways on how the company monitors the code of conduct are explained.
First of all, ‘the CEO and all senior financial officers are responsible for full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the Company with the SEC.’ Also, information that affects disclosures made by the company must be reported to the Disclosure Committee.
Also, both the Disclosure and the Audit Committee must be informed when ‘any information he or she may have concerning (a) significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarize and report financial data or (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's financial reporting, disclosures or internal