While public companies are legally mandated to have an official code of conduct, it might be argued that any company that wants to operate efficiently should implement a code of ethics. Establishing norms and responsibilities of an organization is essential when creating a company culture. It is especially important in a scenario of two or more companies merging as it helps to navigate new regulations.
A code of conduct serves a reference for employees on the company’s expectations and consequences for employees if they fail to meet them. Outlining rules and obligations for employees reduces the likelihood of them not being aware of certain norms. A code of conduct is also integral as an instrument for risk mitigation. From a marketing standpoint, a detailed ethical code bonds a company’s intent to operate with integrity. It creates a positive reputation and a high level of credibility, which affects the way customers and potential clients view the company.
A code of conduct presented by Levi Strauss & Co. does a great job of explaining the company’s principles and values. From the start, it is stated that “obeying the law is the starting point” for the company and the way they do business (Levi Strauss & Co., 2017). Thus, the company demonstrates that customers, employees, and partners can trust and rely on its services.
The company’s code focuses primarily on inner workings and operations within a corporate system discussing conflicts of interest, disciplinary actions, and insider trading. Levi Strauss & Co. takes a modern approach and focuses in detail on their values and ethical principles. For example, in order to create a safe and fair work environment for every employee, the company obliges to have zero tolerance for harassment and discrimination (Levi Strauss & Co., 2017).
Specific rules and regulations are in place to protect the well-being of employees as well. According to Levi Strauss & Co., personal information of employees is highly sensitive and confidential (2017). The company’s code of conduct also incorporates their perspective on public relations and working with the media. It includes all the essential parts of an effective code of ethics and provides both employees and potential investors with the opportunity to make sure of the company’s stance on key issues regarding inner corporate operations and communications with the public.
Reference
Levi Strauss & Co. (2017). Worldwide code of business conduct. San Francisco, CA: Author.