Code of Conduct for the 21st Century Business

The purpose for creating a business Code of Conduct for business owners is to protect themselves from lawsuits and to ensure good workplace and public relations; more and more businesses are creating codes of conduct for their employees to follow. Courts enforce and determine whether an employee’s actions were negligent are using effective codes of conduct.

Protects the Public

An effective code of conduct can protect the public as well as employees. The code of conduct should ensure that the employees act professionally and reliably when interacting with the general public and with each other.

Specific and Comprehensive

Codes of conduct that use specific language are more effective because they allow employees to see exactly what actions the company allows. A comprehensive code of conduct also ensures that the employee knows many of the possible situations he/she may face.

Penalties

Enforcement should include penalties even up to loss of employment. The business is responsible for making sure employees are aware of penalties for violating the code of conduct.

A corporate code of conduct does not have any standardized definition, and refers to a company's public policy, which defines their standards for ethical conduct. They are completely voluntary, meaning that a company may choose to have or not have one, and may address any issue from common workplace issues to worker's rights. Most corporate codes of conduct have evolved as a result of consumer pressure, which has given rise to a whole sector of corporations focused as much on ethical behavior as profit in recent years.

Formats

Compliance codes, corporate credos, and management philosophy statements are the three most common types of corporate codes of conduct. Compliance codes outline required employee or company actions in terms of ethical behavior; corporate credos explain a company's accountability to its stakeholders; management philosophy statements are more general outlines of expected company actions relative to ethical guidelines.

Content

Employee honesty, company commitments to the employee, confidentiality of records, environmentalism, product and workplace safety, drug-related issues, and employee conduct are all issues commonly dealt with in corporate codes of conduct. Regional variation is common; ethical considerations are more prevalent in codes for U.S. companies while workplace safety is more frequently addressed in European organizations.

Execution

Many corporations with codes of conduct will also offer training to their employees regarding them. Such training can be as narrow as an explanation of the company's ethics statements only, or may involve a variety of ethical sensitivity exercises.  Videos on ethics and educational seminars are also a common medium of instruction. In those cases where no training is provided, manager comprehension of codes is often assured through oral or written confirmation.

Transparency

In terms of the transparency, access to and dissemination of corporate codes of conduct, there is a clear trend favoring the distribution of such codes to all employees of an organization. Some companies even include portions of their corporate code of conduct in their annual reports to shareholders. It is far more common, however, that codes are kept in internal circulation.

Enforcement

Most corporate codes of conduct do not state any enforcement provisions. Some, such as Boeing, note only "violations of the company standards of conduct are cause for appropriate corrective action, including discipline." According to the U.S. Department of Labor survey, companies who are contractors of the U.S. government may face corrective action if they fall short of complying with the code of conduct of the government department they service.

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Confronting Business Adversity

Whenever we interact with other people, the potential for adversity exists. Business owners may deal with customers/clients, vendors, employees, partners, and government agencies, and all of these interactions are breeding grounds for miscommunications and disagreements.

Clients may be dissatisfied with billing, strategy, or other aspects of legal representation. Vendors may miss-bill us or provide defective or unsatisfactory products or services. Partnerships can be like marriages; partners may disagree on the goals and direction of the practice or the responsibilities of each partner, or they may engage in wrongful acts in the course and scope of the business. Employees may also not perform as expected. Government agencies can cause a myriad of tax and compliance problems.

This article cannot solve all of those challenges. Rather, it provides some basic rules, preemptive suggestions, and solutions. Following are some basic rules, preemptive suggestions and solutions:

The most important rule in dealing with a potential adversarial situation is “don’t wait, communicate.” Effective communication can cut many potential problems off at the pass. It is important to establish clear relationships from the beginning. Fee agreements and other contracts can help avoid many problems relating to what each party expects of the other. Regarding employees, basic rules and handbooks will let them know exactly what is expected of them.

The second rule is “communicate effectively.” If a relationship with any person or entity begins to get sticky, take the high road in your communications. Think about whether you want to be right or to attain your goal. Communicate in the preferred style of the recipient. If you know the other party likes to talk on the phone, call them. If their preferred communication modality is e-mail, use it. Begin and end every communication on a positive note. I start many letters with “thank you . . ..” Even if it is “thank you for speaking to me on the telephone . . ..” Saying thank you goes a long way. The listener or reader is much more likely to shut down and not hear a word you say if the communication starts with a threat or a criticism. If the communication ends that way, the reader may disregard everything they have read previously. You can do this without appearing to be a pushover and still maintain respect.

Effective communication does not arise from emotion. I often wait a day to respond to e-mail or a letter that I know will lead to a conflict in my day. After I receive problem letters and e-mail messages, I typically wait a day to respond to allow my emotional reactions to subside. If it is impossible to refrain from emotional involvement in an issue, it may be prudent to retain someone else to represent you in the matter. I have done so, as an example, in a tax audit.

Rule number three is “document, document, document.” Even if you deal with your potential adversary on the telephone, send a confirming letter or e-mail immediately to memorialize the conversation. Save hard copies of everything. Keep complete and organized files on all adversarial matters. You never know when you may need this documentation. Unfortunately your business is more about saving your assets than saving trees.

Three simple rules:

•                Don’t wait, communicate;

•                Communicate effectively; and

•                Document, document, document; we can avoid many adversarial situations and minimize those that do arise.

With these three simple rules, we can avoid many adversarial situations and minimize those that do arise.

Overcoming adversity is part of everyone's personal and business life. The stress of our jobs, various family issues, personal relationships, and of course, today's economy, are all critical issues that makes it difficult in overcoming adversity that so many of us are fighting with to resolve our life's battles.

Adversity does not have the ability to ruin your life if you do not allow it to do so. Sometimes adversity is what you need to face in order to become successful. It is the giant that does its greatest damage on the battlefield of our mind (not our body). It humbles us, but it is our isolation in the face of those setbacks that is devastating. The most important ingredient of success is the ability to bounce back from adversity. One trait above all others reliably predicts whether a person will have a successful experience in overcoming adversity. That is a positive attitude!

Resolve in advance that you will meet and overcome every difficulty, and then, no matter what happens, don't give up until you do. If "why" you want something isn't strong enough, you may find it difficult to overcome the roadblocks. To maintain a positive attitude when the going is rough is difficult if your reason to do so is not motivating. Only then do you have the ability to overcome and summon the strength to do so. Persistence can overcome just about anything, given enough time. When you are feeling like you may not be able to overcome a roadblock, take a moment to remember a time when you were able to overcome adversity. How did you feel when you were able to overcome the roadblock and celebrate the success?

Attitude and motivation still transcend knowledge, skill, and technology as the most important contributors to success. A daily dose of motivation helps us cope with the challenges we face every day, giving us strength and reinforcing our beliefs in our own abilities. It helps us maintain our attitudes. Use positive quotes and daily affirmations to help keep you focused. Brainstorm other solutions if the path you have chosen appears blocked. Forecast possible end results to each brainstormed path and then choose the one that seems most likely to bring you success. If at first you do not succeed, well then use the old adage, "try-try again."

Overcoming adversity is something we must deal with each and every day regardless of social position, economic background, race, creed, lifestyle or culture. Make no mistake, though hidden from plain sight, on the other side of every challenge is the opportunity to experience immense personal growth. You must maintain hope and perseverance. Then and only then will you overcome and experience the success that you deserve.

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