Building a strong code of ethics for your business is a firm foundation that can keep everyone in check, energize employees and build a model of trust and faith in your business that other companies tend to lack in this day and age. Your code of ethics becomes part of the public face of your business, and it should affect each and every employee that you pay on your staff. Find out more about the following key terms: ethics, Sarbanes-Oxley, compliance, mission statement/vision statement, values statement and social responsibility.
Ethics
Ethics is a branch of philosophy concerned with morality and immorality.
Center for Ethics and Business at Loyola Marymount University has a wide range of material on ethics.
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002, a federal law, provided updated standards for all U.S. public company boards. It was designed as a measure to avoid the major corporate and accounting scandals that had rocked the country a few years prior to the signing of the act.
Compliance
Compliance is the act of abiding by the laws and regulations that oversee an industry.
Mission statement, vision statement
Mission statements and visions statements are the words chosen by leaders to inspire others on the direction of the organization.
Values statement
A company's values statement reflects its priorities in regards to how the members of the organization act within their group and to their public. It's an establishment of the culture of the organization.
Social responsibility
Social responsibility centers around the idea that the entity at whatever level (business, group, individual, etc.) has a responsibility to society. Goals for business can include such things as quality of life for employees, social investment and overall impact on the community and/or world around them.
