Barriers to Implementation of Code of Ethics

Giving suggestion is easy but implementing them is the real issue. Everyone knows what is right but can we follow what is right? Many companies realize the importance of ethical practices but they alone cannot implement them. It is kind of a joint venture in which government, employees and all other stake holders should be willing to implement the change.

The main issue regarding implantation of code of ethics is the conflict between traditional corporate objectives of profit maximization and the increase of social welfare. Increase in charitable contributions and giving back to the society decreases the bottom line payments and thus has an impact on the profit maximization goal. Big corporate have realized the importance of CSR as a major contributor to the bottom line. They feel that consumers won’t buy their products unless and un till they are green therefore CSR is important. Small and medium sized businesses have not yet realized the benefits of CSR and this can be a major barrier in implementing code of ethics.

Proper evaluation and monitoring is required in implementing code of ethics. Developing countries normally do not have a transparent system of check and balance and also the corruption rate is high. The appointed officials might not properly monitor the factories and might also take bribes from the factory owners. Global companies which have factories in multiple locations face this issue immensely.

Implementation of an ethical policy requires support of the local government as well. If the local government is not supportive then the code of ethics can’t be implemented. The local authorities should understand the importance of code of ethics and take steps for the betterment of their citizens as well.

Conclusion:

Thus we can see that a sound ethical policy can only be implemented if the local government and stake holders are willing to do so. There is always a conflict but steps should be taken to resolve such conflicts. Any business avenue and decision faces conflict of opinion but ultimately it gets implemented. Therefore the dream of implementation of a sound ethical policy will be fulfilled in the near future. 

Authors Websites : http://www.makemyessay.com/