why-are-all-the-multinational-companies-requesting-a-code-of-conduct

Why are all the Multinational Companies Requesting a Code of Conduct?

Advantages of the Code of Conduct:

• Decision-Making: A code of conduct in a business can provide a foundation on which to base all decisions that affect internal and external stakeholders, such as employees or residents in the local community.

• Company Reputation: businesses work hard to gain competitive advantage. Proudly showing our code of ethics on our website or in official statements, while taking consideration to guarantee that our activities are dependably in accordance with our words, we can gather a positive picture among clients and employees; which leads to having a reliable client base and building up their brand reputation.

• Legal Considerations: The lawful advantages of the code of conduct is having moral statements that serve as a virtual necessity of conducting business. The point of interest specified above can help organizations follow the highest ethical standards.

• Communications & Interactions: the code helps a company communicate its expectations to the staff, suppliers, vendors, and customers. Also, by soliciting feedback and questions, the code can be used to encourage frequent, open and honest communication among employees.

• Differentiation, Positioning and Competitive Advantage: the code also enables our company to stand out and show our values and beliefs. The code of conduct applies to all employees, permanent and casual, as well as contractors. When someone joins our company they should review and understand and sign off on the code of conduct; and therefore agree to comply with our guidelines. Differentiation leads to competitive advantage, which in turn leads to having a unique position in the market.

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