Enron Case
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In the text, codes are defined as “top management has the responsibility for establishing standards of behaviour and for effectively communication those standards to all managers and employees in the organization”. Codes are important as they are guidelines that support the everyday decision making of an organization managers and employees. It provides clarity of the organization mission, values and principles. It shows how the organization operates and provides guidelines of behaviour. Codes assist the managers and employees in making decisions that involve ethical and prejudicial situations. Top management also need to realize that codes of ethics offer their organization the opportunity to create a positive public image to the community. The honest and trustworthy culture will also increase the employee morale.
Codes were irrelevant to Enron because the individuals who created and documented them were the ones who violated them. The pressures for managers to perform and the competitiveness among the executive team caused them to ignore all legal and ethical boundaries.
An organization can enforce its codes of ethics by doing the following:
Posting the codes on company websites, in the employees monthly newsletter, employees handbook and on the workplace bulletin board.
For new employees, provide explanation during orientation.
Design an employee award system where you are nominated by peers and supervisors.
Create an excitement with a formal presentation rewarding the employees.
Incorporate the code into the employee appraisals.
Implement seminars for supervisors and managers that assist them in recognizing employee commitment to the workplace