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This module has been revised to provide students in Business Administration experience with different approaches to developing codes of ethics. Studying the Pirate Credo (to which this module links) helps students understand that codes embody values. It also clues students into the fact that codes of ethics are of different kinds and fulfill different functions. Exercises have been added to link this module to an Ethics Bowl module and to the module on Moral Ecologies. Finally, it reports on a successful effort by the College of Business Administration of the University of Puerto Rico at Mayaguez to design and implement a statement of values in response to AACSB requirements. This module is being developed as a part of an NSF-funded project, "Collaborative Development of Ethics Across the Curriculum Resources and Sharing of Best Practices," NSF SES 0551779.

Module introduction

Codes of ethics evoke opposite reactions from people who teach, do research in, or are practitioners of occupational and professional ethics. Some hold that teaching codes of ethics is essential to preparing students for their future careers. Corporations, for example, have come to view codes as the cornerstone of a successful compliance program. Professional societies, such as the Puerto Rico State Society of Professional Engineers and Land Surveyors , also make the drafting, revising, and disseminating professional codes of ethics a central part of practicing professional engineering ethics. But many strongly opppose codes because they promote the wrong sorts of attitudes in those who would be influenced by them. As you will see below, philosophical ethicists raise objections to codes because they undermine moral autonomy, lead to uncritical acceptance of authority, and replace moral motives with fear of punishment. These polar stances are grounded in the very different perspectives from which different groups approach codes. But they are also grounded in the fact that codes take many different forms and serve distinct functions. For example, consider the introductory considerations presented in the following:

Different uses for codes

    Kinds of codes

  • Professional Codes of Ethics . Professions such as engineering and accounting have developed codes of ethics. These set forth the ideals of the profession as well as more mundane challenges faced by members. Engineering codes, for example, set forth service to humanity as an ideal of the profession. But they also provide detailed provisions to help members recognize conflicts of interest, issues of collegiality, and confidentiality responsibilities.
  • Corporate Codes of Ethics . Corporate codes are adopted by many companies to respond better to the Federal Sentencing Guidelines. These codes provide guidelines on particularly sticky issues (When does a gift become a bribe?) They also set forth provisions that express the core values of the corporation. These lengthy codes with detailed provisions support a compliance approach to organizational discipline.
  • Corporate Credos . Some companies have shortened their lengthy codes into a few general provisions that form a creed. Johnson and Johnson's Credo is famous in this respect and can be found by clicking on the Business Ethics Library link provided above.
  • Statements of Values . Finally, more mature companies find it useful to express and disseminate their core value commitments in Statements of Values. These form the basis of values-based decision-making. While codes of ethics clearly establish minimum standards of acceptable conduct, Statements of Values outline the aspirations that can drive companies toward continuous improvement.

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Source:  OpenStax, Corporate governance. OpenStax CNX. Aug 20, 2007 Download for free at http://legacy.cnx.org/content/col10396/1.10
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