A code of ethics also called a code of conduct or ethical code, sets out the company’s values, ethics, Objective and responsibilities. A well-written code of ethics should also give guidance to employees on how to deal with certain ethical situations.
All business must meet a certain standard of law and minimum cultural standards. The general culture of the milieu of their time further influences all. In spite of these tendencies toward uniform conduct, there are important differences among businesses.
Here explain various models of codes of conduct of business with suitable examples. As a guide to understanding different types of business conduct Clarence C. Walton classifies six models of conduct. These are –
(a) The Austere Model: It gives almost exclusive emphasis to ownership interests and profit objectives. In this model, a business firm exclusively emphasizes owners ’ interest and the profit motive.
(b) The Household Model: Following the concept of an extended family, this model emphasizes employee jobs, benefits, and paternalism. The concept of extended family this model emphasizes employee job, benefits, and paternalism.
(c) The Vendor Model: In this Model consumer interests, tastes and rights dominate the organization. In this model, the interests and rights of customers are given top priority.
(d) The Investment model: This model focuses on the organization as an entity and thus on long-term profits and survival. In the name of enlightened self-interest, it gives some recognition to social investments along with economic ones.
(e) The Civic Model: Its slogan has co-operated citizenship. It goes beyond imposed obligations, accepts social responsibility, and makes a positive commitment to social needs.
(f) The Artistic model: This model encourages organizations to become a creative instrument serving the cause of an advanced civilization with a better quality of life. These organizations’ people perform in the manner of artists, building some of their own creative ideas into the institution’s actions, leading it toward new contributions not originally contemplated.
The six models may be thought of us points on a continuum from low to high social responsibility. Regardless of the model sought by an organization, one of its most important jobs is to establish and blend its values together so that they become a consistent system that is known and accepted by claimants. The spin at being strong enough to withstand challenges by parties pressure groups, but flexible mime to more with a charging society.