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Ethical codes are adopted by organizations to assist members in understanding the difference between 'right' and 'wrong' and in applying that understanding to their decisions. An ethical code generally implies documents at three levels: codes of business ethics, codes of conduct for employees, and codes of professional practice.

Code of ethics (corporate or business ethics)

A code of business ethics often focuses on social issues. It may set out general principles about an organization's beliefs on matters such as mission, quality, privacy, or the environment. It may delineate proper procedures to determine whether a violation of the code of ethics has occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a private organization's code of ethics usually can subject the violator to the organization's remedies (such as restraint of trade based on moral principles). The code of ethics links to and gives rise to a code of conduct for employees. Basically business ethics deal with the moral beliefs of the owners of the business towards the employees

code of ethics(business of ethics) focus on social issue of organization. It focuses on development of business, mission of business, plan of business development, it determines privacy, environment and great plan to deliver business at the top level.

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Code of conduct (employee ethics)

A code of conduct for employees sets out the procedures to be used in specific ethical situations, such as conflicts of interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code of ethics occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a code of conduct may subject the violator to the organization's remedies which can under particular circumstances result in the termination of employment.

Code of practice (professional ethics)

A code of practice is adopted by a profession or by a governmental or non-governmental organization to regulate that profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account of what behavior is considered "ethical" or "correct" or "right" in the circumstances. In a membership context, failure to comply with a code of practice can result in expulsion from the professional organization. In its 2007 International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for Organizations, the International Federation of Accountants [1] provided the following working definition: "Principles, values, standards, or rules of behavior that guide the decisions, procedures and systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all constituents affected by its operations."

General notes

Ethical codes are often adopted by management, not to promote a particular moral theory, but rather because they are seen as pragmatic necessities for running an organization in a complex society in which moral concepts play an important part.

They are distinct from moral codes that may apply to the culture, education, and religion of a whole society.

Often, acts that violate ethical codes may also violate a law or regulation and can be punishable at law or by government agency remedies.

Even organizations and communities that may be considered criminal in nature may have ethical codes of conduct, official or unofficial. Examples could include hacker communities, bands of thieves, and street gangs.

Examples

References

Ladd, John. "The Quest for a Code of Professional Ethics: An Intellectual and Moral Confusion." In Deborah G. Johnson (ed.) Ethical Issues in Engineering. New Jersey: Prentice Hall, 1991.
Flores, Albert. "The Philosophical Basis of Engineering Codes of Ethics." In Vesilind P.A. and A. Gunn (eds), Engineering Ethics and the Environment. Cambridge: Cambridge University Press, 1998: 201-209.

External links

Codes of Ethics Online Collection by the Illinois Institute of Technology
[2] AIIC's Interpreters Ethical Code