A business’s code of conduct is essential for upholding the highest ethical standards, complying with the law, and safeguarding the company’s brand. Friedman claims that the idea of corporate “social responsibility” can be ambiguous, resulting in inconsistent policies (173). A well-written code of conduct can provide a framework for decision-making by outlining a company’s moral principles. This assignment assesses how well the Cheesecake Factory’s Code of Ethics and Business Conduct applies to its employees in various situations. In general, although the Code offers sufficient direction in many situations, there are several areas where it should be made clearer and more specific.
Regarding safeguarding the company’s sensitive information, the Code offers pertinent guidelines for scenario 2. The Code protects the company’s financial and confidential information (“Code of Ethics and Business Conduct” 5). Although the Code stresses the significance of protecting confidentiality, it does not include detailed instructions on managing circumstances where such information is unintentionally released. Given the circumstances, the Code would be deemed adequate; it may use a more thorough explanation of managing a confidentiality breach, especially if other parties are involved. In addition, scenario 3 is addressed under the Code in numerous pertinent ways. Similarly, the firm’s Code is sufficient in this situation. The Code emphasizes the significance of treating every employee with respect and dignity and forbids sexual harassment (see “Code of Ethics and Business Conduct” 2). Specifically, the Code can be considered sufficient for managers and supervisors.
The Code has several rules and regulations that exhibit a degree of cognitive moral development corresponding with Kohlberg’s model’s third stage. The “Good Interpersonal Relationships” stage strongly emphasizes following social norms and expectations and looking for other people’s acceptance (Crain). As a result, the Code focuses particularly on adhering to organizational guidelines and avoiding conflicts of interest (“Code of Ethics and Business Conduct” 2). The two examples in the Code that support this idea are the non-disparagement and non-recruitment clauses, which demonstrate an appreciation for preserving goodwill among people, even after work has ended (“Code of Ethics and Business Conduct” 5). These principles reflect the third stage of cognitive moral development.
The Code addresses certain biases as described by Messick and Bazerman. After employment, articles, records, and documents containing confidential information must be returned to the supervisor (“Code of Ethics and Business Conduct” 5). This addresses the bias of the possibility that the public will “find out” and the bias of discounting the future (Messick and Bazerman 2). Thus, while the code of conduct does not address all of the biases identified by Messick & Bazerman, it includes several provisions.
Despite the provisions and policies outlined in The Cheesecake Factory’s Code of Ethics and Business Conduct, there are scenarios where I would not feel comfortable following the Code. In scenario 3, for instance, the Code offers no specific instructions on handling such behavior for an employee who is not a manager or supervisor. Watkins emphasizes that for capitalism to succeed, there must be trust, honesty, fairness, and integrity (14). Friedman et al. stress the significance of leadership in creating options that benefit everyone. Thus, I would seek advice from higher-ups in management or human resources in such a situation. Regarding scenario 2, while the Code offers advice on protecting sensitive information, it lacks specific instructions on managing a confidentiality breach. This choice would be motivated by the desire to defend the interests of all stakeholders, including clients and the company’s reputation (Kowitt). In such a case, I would gather information on the incident to ensure that a record of the breach is kept and that precautions are taken to avoid such in the future.
In conclusion, although The Cheesecake Factory’s Code of Ethics and Business Conduct offers advice for various situations, there are still certain situations where it is insufficient. To guarantee that a record of the behavior is kept, it could be required to seek advice from human resources or higher-level management and document the incident. The Code should provide further elaboration on how to handle specific instances.
Works Cited
“Code of Ethics and Business Conduct.” The Cheesecake Factory Incorporated, 2019.
Crain, William. “Kohlberg’s Stages of Moral Development”. Theories of Development, edited by William Crain, Prentice-Hall, 1985, pp. 118–136.
Friedman, Milton. “The Social Responsibility of Business is to Increase its Profits.” The New York Times Magazine, Sept. 1970.
Friedman, Milton, Mackey, John, & Thurman John Rodgers. “Rethinking the Social Responsibility of Business.” Reason, vol. 37, Web.
Kowitt, Beth. “John Mackey: The Conscious Capitalist.” Fortune, Web.
Messick, David M., and Max H. Bazerman. “Ethical Leadership and the Psychology of Decision Making.” Sloan Management Review, Winter 1996, pp. 9–22.
Watkins, Sherron S. “Ethical Conflicts at Enron: Moral Responsibility in Corporate Capitalism.” California Management Review, vol. 45, no. 4, July 2003, pp. 6–19.