CODE OF ETHICS

Code of Ethics

Code of ethics

Introduction

Occupational stress is a growing problem that results in substantial cost to individual employees and work organizations around the globe. The changing nature of work has placed unprecedented demands on employees, and fuelled concerns about the effect this change is having on the well-being and health of employees and their work organizations. In many large organizations, for example, the 1990s were a period of dramatic downsizing, outsourcing, and globalization. Although these changes have led to greater mobility and more flexible work arrangements for some employees, for others they have raised concerns about employment security, increased work demands, and the loss of 'connectedness' that can result from the move toward less secure forms of employment (e.g., parttime and short-term contract work).

In many organizations, these changes have also been coupled with rapid technological change, and a strong push for greater efficiency, increased competitiveness, and improved customer service. Conventional wisdom suggests that it is this climate of continual change that is placing many employees under pressure and creating the types of work organizations that will produce high levels of occupational stress. This places a premium on being able to understand the causes and consequences of occupational stress, so that appropriate policies and practices can be developed to ameliorate these concerns.

 

Discussion and Analysis

As many organizations already understand, a formal, written code of conduct is critical in order to transform ethical behavior into something more tangible for employees. Such a code is now a requirement for public companies, as mandated by the Sarbanes-Oxley Act and by the listing requirements of the major stock exchanges.

Executing a successful code of conduct depends on three key elements: proper definition, effective communication and appropriate warning signals as monitoring tools. For years, companies have implemented corporate compliance programs that generally are based on a published code of conduct and follow the infrastructure outlined under the Federal Sentencing Guidelines for Organizations. To be effective, each program's underlying elements should reflect the unique aspects of the organization's culture and management's operating style.

A statement by the CEO that the organization is committed to conducting business with integrity, in accordance with the highest ethical standards and in compliance with all applicable laws, rules and regulations. This establishes the required "tone from the top."

Practical examples of situations an individual might encounter, and guidance to help clarify how the code should be applied in each case.

A discussion of the roles the organization's policies, structure, risk management and internal controls play in ensuring compliance with the company's ethical standards, including the role of personal accountability for adhering to the code.

Recognition of the company's responsibilities to shareholders, employees, customers and other stakeholders.

Prohibitions on and/or required disclosures related to conflicts of interest and restrictions on the use of confidential/proprietary information.

Corporate guidelines, including policies on expenses, asset usage, vacations, insider trading, etc.

A code without discipline lacks substance. Management must take disciplinary action for violations on a timely basis, and lessons learned from violations should be communicated to employees and reinforced through ...