•Perform an Internet search and find an example of an actual corporate code of e

Question

•Perform an Internet search and find an example of an actual corporate code of ethics. •Based on your understanding of the code of ethics, critique it from the perspective that it stipulates the firm's commitment to operate every facet of the business morally and ethically. •In your critique, answer the following questions: •Does the firm urge all its employees to uphold the code and perform only in ethically acceptable ways? •Does the code discuss the firm's values and reflect the corporate culture? How? Support your answers with examples and reasoning.

Explanation / Answer

I searched the internet and located the corporate code of ethics of a company called Trans World Entertainment Corporation. The company’s code of ethics talks about maintaining honesty, fairness and upholding the spirit and letter of the law. Some other key areas of focus include avoiding the occurrence of conflicts between personal interests and company interests; avoiding payments from the company to government officials or to candidates in contention for government posts; complying with all commonly accepted accounting standards; maintaining company reputation; avoiding actions that could potentially produce an adverse effect on the company; and acting with integrity when dealing with the assets of the company.

The code says that disciplinary action (which may include termination) will be taken against an employee who violates the company’s expectation of fairness and honesty in any of the transactions that they make with the company. The company specifically asks its employees to perform with high ethical standards and adhere to the ethics code at all times. This point is stressed by the company by making it clear that even failure to promptly report fraudulent or illegal acts involving others is also a violation of the ethics code. The company gives clear directions about who to contact and how to contact incase an employee senses some fraudulent activity. The company makes such reporting easy for employees by providing an anonymous tip line. The company protects employees who report fraud by having a zero tolerance policy against those who retaliate against them in any way.

The company underlines the requirement that all employees must never allow their personal interests to conflict with either those of the company or of the customers. Employees are directed not to act on behalf of the company in dealing with any transactions that involve the financial interests of any of their family members. The company mandates that all facets of its business be carried out on the basis of merit and condones all forms of favoritism, bribery, kickbacks, inappropriate commissions, gifts etc from suppliers or prospective suppliers.

The company has clear specifications describing how an employee should conduct themselves with competitors and external for-profit organizations. The expectations and strict no-nos are clearly set by the company in terms of work relationships, company confidential information, foreign business transactions, personal investments, law violations, response to external queries, and how its products, services, and other assets should be handled. The ethics code talks about strict adherence to health, safety, and environmental standards apart from reminding employees to maintain good community relations and conduct themselves with responsibility while operating as corporate citizens in the community. There is special focus on internal accounting controls and the need for promptness, completeness and accuracy in recording and reporting information.

Apart from this, the company emphasizes on equal opportunity and prohibits discrimination in any of its forms while recruiting, placing, promoting, transferring, demoting, laying-off, terminating, advertising, deciding compensation, and overall treatment during employment. The code of ethics for Trans World Entertainment Corporation does not directly discuss its values but it is so exhaustive and specific in addressing every facet of the business that it stands as a reflection of the company’s commitment, values, and culture.

Reference:

http://www.twec.com/corpsite/corporate/code.cfm

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