Summary: This article aims to reflect on compliance with the code of ethics for the proper moral performance of companies in the community and for the environment. Companies today tend to adapt to the needs of consumers and what they demand, however they are also adapting to the needs of the community and the environment, and all of this is achieved through compliance with a code of ethics. For which it is important to reinforce the values and culture within the organizational climate, it is not only about having a code of ethics, but success will depend on the proper implementation of the code.
Key Words: Code of ethics, moral responsibility, values.
Currently, companies are not only focused on profitability and sales growth, but they have broadened their perspective on what their role is in society, analyzing and taking actions on the social and environmental impact generated by their business activities. Likewise, many companies have emerged economically and socially, keeping their brand and product loyal to consumers; However, there are other companies that have emerged economically but have failed due to their bad behavior regarding their social or environmental impact.
I believe that today professionals are trained and have implemented various mechanisms, processes, and tools that have enabled the company's social commitment to the community to be met, so it could be said that there are no excuses when you really want to be a company responsible and this term covers not only the environmental impact but also the ethical and moral conduct of its actions and that of its collaborators, not only through compliance with an ethical code but also through a set of values that ensure the adequate compliance with the code. The values within the organizational culture are those that determine the ethical behavior of the company towards workers, the company, customers, suppliers and even the competition,Among the values that we can highlight as allies for the proper compliance with a code of ethics are: According to an article by EAE Business School, (2017) where it highlights 7 key business values for proper management within a company.
- Respect for its workers, is one of the main values within a company, in this way workers feel motivated and their personal and work performance improves. Social Responsibility, all companies, whether small or large, have the duty to commit to the well-being of their community and promoting projects that contribute positively to the lives of others. Transparency and honesty, Transparency and honesty are essential for a company to achieve a good reputation. Quality is not only based on the best service for the best price but also the quality within its processes in order to improve efficiency and effectiveness. Capacity for Analysis and Self-Criticism, All companies must carry out periodic analyzes that allow them to discover their strengths and weaknesses.Self-criticism is capable of detecting mistakes in time that, in the long run, can be very expensive. hard and constancy. Likewise, employees must see that their constancy is reflected in economic, social, personal and environmental results.
So why is moral responsibility important to the company and it is not enough to comply with an ethical code but also proper compliance with the ethical code depends on instrumentalization? For Lozano (2018) an adequate compliance with the ethical code allows to increase the loyalty of consumers, the satisfaction of workers, the loyalty of investors and above all improve social credibility and social legitimacy.
On the other hand, organizations that aim to control business activities and that these do not affect the environment must be happy because they have achieved sensitivity in companies and their customers; It is worth mentioning that they should not only focus on the moral behavior of companies but also on consumers who have the final decision when consuming a certain product; therefore, consumers also have a moral duty to demand, support, contribute or stop contributing to anything that negatively impacts society.
Moral and ethical responsibility is not just a matter of fashion, nor of profitability, but of actions to improve the world in which we live. Many professionals and companies have created ethical guidelines for dealing with their own business environment. In fact, almost 90% of companies have a code of ethics that applies to all employees. By creating ethical guidelines, the organization has revealed that employees and members cannot claim that ignorance is a defense of unethical conduct.
There are various articles and research on social, moral and ethical responsibility, however, a new concept has now emerged called corporate social responsibility. It has a modern approach to the actions that group this concept, focusing on the well-being of employees and their families..
Likewise, in recent years there has been a slowed growth on the protection of the environment and ethical actions where the term corporate social responsibility has become more important, given the increasing demand for the use of the internet and social networks, They have been betraying many companies when they acted irresponsibly with their collaborators, corporate scandals, abuse and complaints of customer shopping experience.
Figure 1: Areas of Corporate Social Responsibility.
According to an article by IONOS (2019), it interprets the areas of corporate social responsibility as follows.
- The internal responsibility area includes all the internal strategies and processes that do not reach the public, but which essentially determine the ethical orientation of the company. The central area of responsibility includes all those fields that are publicly effective and have a direct effect on the environment. environment, people and society and who continue to be part of the normal work process. All fields of action belong to the area of external responsibilityThis means that a company becomes charitable (generally in economic terms) and interrupts or adapts its daily work if necessary. The “Hiß” model is adequate to illustrate the different areas of CSR.
When companies are committed to promoting social projects, fundraising is putting into practice a correct CSR, depending on the size and scope of each company, likewise companies that are multinationals must expand their responsibility and ethical and moral commitment towards all the countries in which it is located. According to a report by the Mercadona supermarket chain, (2019): The well-known Mercadona supermarket chain, with 100% Spanish capital, has a presence in 17 Autonomous Communities and has more than 1,600 stores. The corporate social responsibility of this supermarket chain focuses on three aspects:
- The commitment to the environment, launching eco-efficient stores thanks to the reduction of false ceilings, to systems that allow heat recovery from the engine room, which is later used to air-condition the delicatessen aisles, and to the control of lights at through the use of presence sensors. The company has also launched a product reuse program and a few years ago it started a silent night discharge program so as not to harm city traffic or the rest of the residents of its stores. In 2003 the Barcelona City Council awarded this initiative. The commitment to society: in 2018 the chain donated 8300 tons of food to social entities throughout the Spanish territory.Commitment to stakeholders that, in this case, are suppliers, customers and workers. Despite the criticism that this company has received through various media, the truth is that the International Labor Organization (ILO) has recognized the good conditions of Mercadona workers.
S and Gün a report of the company Inditex (2017): Inditex is one of the distribution companies biggest fashion world. It has almost 7,500 stores and is present in 202 markets. Corporate social responsibility has gained importance in the group since 2001, when they created a specific department for it. Focusing on:
- Corporate governance of the company: among many other measures carried out by the company, in April 2017 Inditex distributed 42 million euros among more than 88,000 employees over two years old. Social action: among other measures, it is worth mentioning the donation of 320 million euros to Spanish public health to modernize technology for the treatment and diagnosis of cancer, and the recent agreement with the Massachusetts Institute of Technology to finance two chairs with the objective of investigating new textile materials and their recycling. I d io environment: As part of its commitment to the environment, Zara, Inditex's flagship company, has launched a campaign to collect used clothing to donate it to Cáritas and other NGOs.
A corporate code of conduct serves as a primary statement regarding how a company conducts its business and the primary communication of its ethics and compliance program. A code generally incorporates the standards that a company sets and possibly other standards that others encourage it to adopt. Among these standards are the ethical and compliance risks that a company seeks to prevent, detect and mitigate in the event of a code violation. A quality code of conduct can do a lot to improve the success of a company. Companies that see a code simply as a way to communicate legal rules lose much of the value that a code can provide. Well-developed code can help a company:
- Prevent legal and regulatory violations. Promote greater employee loyalty and retention. Promote greater customer loyalty and retention. Build stronger relationships with suppliers and other business partners.
Strengthen the trust and respect of other stakeholders, such as local communities, regulators, NGOs, even competitors. A strong code of conduct serves multiple functions, primarily in the way that they communicate how important responsible conduct is to the leadership of the company and its employees. Good codes don't grow on trees; they must be developed through a managed process that addresses numerous elements and dimensions that make up a large code hand in hand with the company's workforce.
Bibliographic references
- EAE Business School (2017). 7 key business values for any company. Spain, recovered from: https: //retos-directivos.eae.es/7-valores-empresariales- clave-para -any-compania / Inditex (2017). ANNUAL REPORT 2017. Spain, retrieved from: https://static.inditex.com/annual_report_2017/assets/pdf/memoria_es.pdfIONOS (2019). What is corporate social responsibility ? Spain, retrieved from: https://www.ionos.es/startupguide/gestion/responsabilidad-social-corporativa/IONOS (2019). What is corporate social responsibility ? (Figure 1), retrieved from: https://www.ionos.es/startupguide/gestion/responsabilidad-social-corporativa/Lozano, F. (2019). Corporate Social Responsibility of large and small companies, moral requirement. Spain, retrieved from: https: //www.intered.org / en / participate / news / corporate-social-responsibility-of-large-and-small-companies-moral-demand-Mercadona, (2019). New Mercadona Environment Report. Spain, retrieved from:
