Followed or not, just about every large company and professional organization has a code of ethics that's meant to get everyone doing the right thing. The code might describe the company’s or organization’s values, how employees are supposed to behave and what to do when faced with particular ethical dilemmas. It could also spell out the penalties if the code of ethics is not followed.
Professions such as realtors, certified public accountants, Wall Street traders, bankers and financial advisors all have a code of ethics written by the trade organizations that issue their certifications. Rules for behavior are clearly defined and a person can lose their certification if the rules are broken.
Adam works for a large medical center doing fundraising. He can access patient data such as name, address and phone number, but the hospital’s code of ethics clearly states he is not allowed to look up data regarding the patient’s diagnosis, treatment, etc. The code also states the employee will be terminated if he or she is caught doing this. So, Adam resists the temptation to look up the records of his friends and relatives.
For some industries such as banking and investments, there are laws in place that guide their code of ethics and behavior. Since it’s crucial that these are followed, some companies hire a compliance officer to keep up to date on industry requirements, conduct training for all employees, and ensure rules are being followed.
A code of ethics can also contain a company’s commitment to preserving the environment or not doing business with foreign companies that use child labor or pay very low wages.
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Finance: What does it mean to have fiduc...51 Views
Finance a la Shmoop! What does it mean to have fiduciary obligation? Alright well
fiduciary refers to the responsible person, who has oversight, above a given
financial transaction, or process. That is, it is the fiduciary obligation, of the
head of a corporation's Audit Committee, to be certain that the
accounting process is handled fairly, objectively, inclusively and thoroughly [boss overseeing worker]
and there are a few other ly's in there, but well you get the gist. Doesn't it
seem strange, that some companies just seem to get into the same kind of
trouble again and again. Remember the BP oil spill, well it wasn't the first time
they'd had, an accident. You know, if you can call that spill only an accident.
What kind of oversight did they have? Any? Well some companies just have a [man carrying oil barrel
corporate culture that's run by the notion, that well, whatever isn't caught
as a crime, is legal. Lots of Wall Street stock brokerages came and went this
way. Yah, remember the Wolf of Wall Street? Kind of like that. Well what is
the obligation of a responsible party when faced with ethical dilemmas? Where
does the obligation start and stop? Should fiduciaries be held to a higher
personal standard than normal people? Yah, kind of the, you know, Harvey
Weinstein effect there. Yes, No, maybe, alright. Right, all three times. [question ABCD chart]
It's definitely yes, no, or maybe.
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