Recent corporate scandals emphasize an exclusive focus on financial performance, to the exclusion of broader stakeholder-associated performance standards, can be damaging to overall firm value creation. Among the methods to enhance leaders' focus on stakeholder value creation is the executive and development championing of an effective code of ethics. Such "Ethics Code Obligation" (ECC)-which incorporates characteristics of the code and behaviours by top management-impacts a broad variety of organizational stakeholders, giving value for them, hence raising their psychological and/or monetary commitment to the organization while strengthening the company's corporate culture.
This article develops a model putting emphasis on the various advantages of ECC to key stakeholders and the following effects on competitiveness and an organization's culture. In particular, we focus on the need to include community leaders and key employees in the ethics code development process; the relevance of moving away from a purely legalistic document to one that inspires stakeholders; the relevance of linking integrity to strategy; and managerial approaches that can enhance the effectiveness of the code of ethics through values-related dialog. When developed and implemented accurately, ECC can end up being an important source of competitive advantage via the effects it has on relationships between key stakeholders and the firm.
The Bottom-line Benefits of Ethics Code Commitment case study solution
PUBLICATION DATE: January 15, 2010 PRODUCT #: BH366-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
TYCO: M&Machine
Adenosine Therapeutics LLC: Accounting for a Different Compensation Method
Paid Search: The Innovation that Changed the Web
The St. Xavier Healing Touch Hospital
Introduction to Responsibility Accounting Systems Online Tutorial
Assessing Earnings Quality: Nuware Inc.
Hootsuite: Monetizing The Social Media Dashboard
Ohio Lottery: Innovative Research Drives Winning
Generating Higher Value at IBM (A)
Eskom and The South African Electrification Program (C)
