This report emphasize upon code of conduct. In this report, code of conduct and its significance has been analyzed in concern of stakeholders. Further, it has also been analyzed that how a business get affect through its code of conduct.
Code of conduct is a document which is vital for every business such as some unethical work could lead some companies into serious troubles with government authorities, serious trouble with consumers and some other organizations. It manages the governance and ethics of an organization.
Code of conduct is quite crucial for an organization as it affects the operations and all the related parties of the company. Code of conduct enhances the value for the stakeholder. Donker, Poff and Zahir, (2008) have depicted in a study that if an organization manages the code of conduct in an ethical manner than it directly enhances the significance of the stakeholders of the company. It has been observed through the research of Githui, (2012) that through the code of conduct, it becomes easy for the stakeholders to choose the best company and invest into the company accordingly. It has also been found through the study over EBSCO that code of conduct enhance the value of the organization and with the increment in the value of the organization, the value of stakeholders also enhances.
The code of conduct helps an organization to enhance its business functioning and through the increment in the functioning of the company, the share value of the company automatically enhances. Further, it has been analyzed that a business is required to mange the code of conduct as it enhances the goodwill of the company in the market and it also attracts the customers to invest into the organization and offer them a good return (Thomas and Cotter, 2007).
Through conducting further study over the significance of code of conduct on stakeholders, it has been found that code of conduct sets a guideline for the company to manage its stakeholders and their worth and through implementing these guidelines; it becomes possible for the company to enhance the worth of their shareholders (Palpacuer, 2008). Code of conduct also helps the stakeholders to manage the investment and return through which it becomes easy for the shareholder to manage the invested amount. Further, it has also found that this helps the organization to maintain the fund for further investment. Code of conduct is a crucial study which depict that it is required for every company, individual, stakeholder, shareholder to manage the code of conduct to enhance their worth and mange all the related aspects.
Thus through this study, it has been observed that it is easy for the stakeholders and organization to manage the code of conduct to enhance the worth of functioning and the investment of the shareholders.
Through this study, it has been analyzed that code of conduct is quite important for an organization to maintain and enhance the ethics of the company. an individual must implement the code of conduct to manage the related aspect.
Donker, H., Poff, D. and Zahir, S., 2008. Corporate values, codes of ethics, and firm performance: A look at the Canadian context. Journal of Business Ethics, 82(3), pp.527-537.
Githui, D.M., 2012. Ethical issues in the construction industry in Kenya: A critical analysis of the professional conduct in engineering technology management.
Palpacuer, F., 2008. Bringing the social context back in: governance and wealth distribution in global commodity chains. Economy and Society, 37(3), pp.393-419.
Thomas, R.S. and Cotter, J.F., 2007. Shareholder proposals in the new millennium: Shareholder support, board response, and market reaction. Journal of Corporate Finance, 13(2), pp.368-391.