The case of UWEAR and PALEDENIM companies, which are planning to merge soon, presents the necessity to develop a new code of conduct and mitigate possible issues related to cultural, ethical, and organizational differences. This essay will discuss the steps needed to establish the code of conduct, essential components that should be included in the code. Further, the influence that the code of conduct has on a company’s culture will be analyzed.
To address cultural issues and ensure that the merger will go smoothly, a set of actions should be used to create the code of conduct for employees. Analysts suggest implementing six steps that help to develop the code of conduct (“Developing a code of conduct,” 2013). Firstly, it is necessary to gather information about specific features of the business, including customer relations, conflicts of interests, confidentiality, and others.
In the case of the merger, it is crucial to explore data and possible consequences of the cultural issue that may erode the operations of the company. Secondly, creating a draft that should be positive and value-based is required. Members of both companies should participate in draft preparation to balance interests. It is suggested to use mediators in negotiations between two parties to elaborate the code (Hill & Rapp, 2014). The third step is reviewing the draft that can be done by test drive for a group of employees to gather the feedback of both companies and adjust the guidelines.
Next comes adopting the code formally with a board of directors’ approval of UWEAR and PALEDENIM. The fifth step is introducing the system by leaders of organizations and establishing educational services to train employees and give them certifications of compliance. The final step is enforcing the code by introducing an ethics officer that will track employees’ feedback and by deploying an anonymous hotline to ensure a transparent reporting process regarding misconduct.
The code of conduct should be practical and clear for all employees, especially in the case of the merger of two companies with different corporate cultures. Researchers of the topic suggest including the definitions of the following concepts: legal compliance, harassment, discrimination, conflicts of interest, accounting, reporting, confidentiality, intellectual property rights, fraud, use of company property, insider trading, and whistleblower protection (Editorial Board, 2019). As there is a need to mitigate cultural differences between two organizations, it is crucial to highlight moral values, such as honesty, accountability, trust, to integrate a culture of ethics in the code of conduct.
The system of standards has a substantial influence on any organization’s culture. For instance, Levi Strauss & Co. emphasizes in its system that the company’s culture is based on values, such as social responsibility and integrity (“Worldwide code of business conduct,” n.d.). Managers of the company have reinforced the corporate culture through the code to encourage employees to comply with common standards.
Thus, the same system implemented in other organizations may influence employees’ actions and ways of thinking when managing various situations. Professionals claim that the correct code of conduct shows a significant level of commitment from managers and employees to act ethically, which leads to the cultivation of a highly moral culture within the organization (Editorial Board, 2019). In the case of UWEAR and PALEDENIM, which are going to merge, the code of conduct might help managers in setting the organization’s culture based on shared values.
To conclude, one might say that the establishment of the new organization, as well as mergers or acquisitions, requires creating a new code of conduct that will guide employees through various essential topics. When it comes to diverse issues of the teams, the code of conduct helps to resolve conflicts and unite employees in the organization. Managers and employees of the organization should reinforce the culture and values by showing a personal example of following the code.
References
Developing a code of conduct: A step-by-step guide. (2013). Web.
Editorial Board. (2019). Leadership and ethical decision making. Schaumburg, IL: Words of Wisdom.
Hill, R., & Rapp, J. (2014). Codes of ethical conduct: A bottom-up approach. Journal of Business Ethics, 123, 621-630. Web.
Worldwide code of business conduct. (n.d.). Web.