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The Ethical Code Of Conduct Essay

Ethical Business A Code of Ethics Importance

Key areas of the company's code of conduct policies

Explain the key steps that the company should take to ensure that employees follow the code of conduct

Suggest three ways in which the restaurant can engage in socially responsive activities in the community within which it operates

A Code of Ethics Importance

A code of ethics is a necessary component for all companies that intend to do business in an ethical manner in general, and a detailed code of ethics that targets various aspects of operations can actually be used as a competitive advantage that serves as the basis of managerial decisions based on the specific set of objectives the company wishes to accomplish. Such a code forms the common framework used as the foundation of all business decisions (Barth, 2003).

Apart from keeping a company away from any suspicions with regards to its compliance requirements, a code of ethics helps in the creation of a cohesive understanding of the boundaries of expectations from within the company, but also sets standards that are applicable in the manner in which employees deal with external stakeholders. A company's legal standing, as well as its reputation, can also be protected to some degree by a formal and a well-communicated code of ethics in the eventuality of a breach of ethics either by the company or by an individual employee ("Corporate ethics: the business code of conduct for ethical employees," 2003). For this analysis, a discussion of the details relevant to a specific code of ethics with provided, which will be illustrated by the Cheesecake Factory.

Key areas of the company's code of conduct policies

The Business Financial Interests ethical code that is applicable to both...

This code of conduct provision entails that no individual in the company should make personal financial gains through dealings on behalf of the company. The company also expects officers and directors to refrain from ay transactions that even gives the impression of a possible financial conflict of interest. Additionally, the company also expects that no relative of any employee of the company should have an interest in or any form of financial investments in a customer, supplier, contractor or a competitor of the company.
This provision helps the company to maintain a steady image among the stakeholders -- both internal and external, about its unbiased nature and its standards of ethical behavior in its business conduct in general. In the long run, such ethical conduct of business also helps promote a positive image of the company in the minds of the customers and potential customers. The employees are bound to disclose all their business interests to the supervisor to ascertain the extent and nature of any arising conflict of interest ("Amended and Restated Code of Ethics for Executive Officers, Senior Financial Officers, and Directors," 2016).

Other aspects of the code of conduct that are also related and can impact business operations include the prohibition of the use of company position by an employee, the use of company property, or company information for making personal gains. Such acts can only be done with direct permission from the Audit Committee. This measure ensures that the company does not carry the reputation of its officers using their influence to make transactions and hence helps in enhancement of a professional image. Breach of information from…

Sources used in this document:
References

Amended and Restated Code of Ethics for Executive Officers, Senior Financial Officers, and Directors. (2016). http://investors.thecheesecakefactory.com/. Retrieved 3 June 2016, from http://media.corporate-ir.net/media_files/IROL/10/109258/CG/code%20of%20ethics%20for%20executives.pdf

Barth, S. (2003). Corporate ethics. [Boston]: Aspatore.

Code of Ethics and Code of Business Conduct (Revised March 2006). (2016).http://investors.thecheesecakefactory.com/. Retrieved 3 June 2016, from http://media.corporate-ir.net/media_files/IROL/10/109258/Code_of_ethics.pdf

Corporate ethics: the business code of conduct for ethical employees. (2003). Choice Reviews Online,41(04), 41-2265-41-2265. http://dx.doi.org/10.5860/choice.41-2265
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