FIN301:

Lesson 1: Introduction

Business Ethics

In running a business organization today, firms need to put in place a written code of conduct that all employees should be expected to follow. In the code of conduct, the firm should be explicit in what behavior is considered to be both ethical and acceptable. In addition, examples of what is considered to be unethical and not in accordance with the firm's values should be stated as well. Clearly, a firm's management needs to highlight what is expected behavior of their employees and to take disciplinary action when an employee's behavior is not in accordance with the firm's written code of conduct.

Let’s further examine this idea of a written code of conduct. 

L.L. Bean Inc., is a good example of a company working hard to preserve the earth’s precious resources as well as human rights via labor laws and product sourcing while maintaining a profit. Their code of conduct consists of Corporate Citizenship and Social Responsibility.

Please visit the L.L. Bean website to learn more about their business ethics.

So what does that mean to you if you were working in the finance division of L.L. Bean? Well, it might mean that you would avoid investing in other companies or perhaps electing not to expand manufacturing facilities if that expansion would be been damaging to the envioronment.

A company's written code of conduct might not be a handbook entitled Our Written Code of Conduct. Rather, it might be composed of several handbooks describing and examining the company’s ethical position on many of society’s shortcomings.