BENEFITS OF ETHICAL CODES

The ethical codes serve a number of purposes by specifying behavior that is required for the protection and continuity of the professional group as a whole. Prescription of behavior serves as a clue to what type of response is expected in a given situation. Thus various groups associated with the functioning of a professional group are served in the following manner. 

1.         Customers: Customers dealing with the organizations following some codes may benefit as they are sure that no undesirable transactions will be conducted. This also gives them a fair amount of confidence in dealing with the organization concerned. Thus they are relieved of unnecessary anxiety.

2.         Employees: Employees of organization benefit by the codes because these provide guidelines for their behavior. They can know easily what is expected of them. They can distinguish very easily what is ethical or unethical and can avoid unethical behavior. In fact, many times employees engage themselves in unethical behavior because they are not able to distinguish between ethical and unethical behavior.

3.         Organization: The organization can derive benefits from ethical codes as it requires less control of employees’ behavior because these may serve as regulatory measure for its members. Moreover, the codes may serve as basis for maintaining external relations also. 

4.         Industry: The industry may derive benefits from ethical codes as these provide for fair trade practices resulting into healthy competition among its various constituents. This results into the growth of the industry in most socially acceptable way.

5.         Society: The ultimate benefit of ethical codes goes to society. In fact, ethical environment of managers is a part of their social environment. The social cause is served better if all professionals forming its part follow certain specified behavior.