Free Custom «Business Code of Ethics» Essay Paper

Shell Oil Company is a multinational corporation that is involved solely in oil products. It is one of the leading oil producing companies in the world. During its early years of incorporation, the company performed its operation solely but later it merged with other oil producing companies. It has employed more than 93, 000 employees globally. The Company’s innovative approach has enhanced its success and has effectively tackled competition from other oil-producing companies. The company’s mission is to continue with the delivery of oil products and services to stakeholders in an attempt to satisfy their needs. In addition, it aims at conducting its operations in an economically optimum and sustainable environment in order to realize high revenue outlay. In achieving its mission and vision, the company has incorporated a decisive code of ethics that will guide the management in its operations.

Shell Oil Company’s code of ethics is a clear scenario of end-driven ethical system. The company requires that the employees should follow the core values of the organization, which includes Integrity, honesty, and respect, in order for them to be successful. This implies that the company’s success is rooted to the Shell General Business Principles underlined in the code of Ethics. End-driven ethical system provides that an organization should only articulate to the values that will realize the company’s success. Other values that may be vital but have no impact on the success of the company should be ignored. Shell Oil Company’s statement of ethics is underlined on the three principles.

 

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As a leading oil manufacturing and distributing company, Shell needs Code of Ethics in order to instigate a defined behavior to its employees when performing their duties. Over the past years, the economy has been volatile, and when the consumers’ interests are violated, the company will be giving an advantage to the competitors. The investors and third parties relies son code of Ethics to ascertain the Company’s going concern in the future. A well-set standard ensures that there is no conflict of interest between various stakeholders and the revenue outlay will be consistent prior to the company’s life. Concerning employees, the Code of Ethics provides the guideline on how to put into practice the ethical values as stipulated in the company’s General Business Principles. The code upholds rights of the employees and provides that they should work in a safe environment to enhance commercial success.

The Code of Ethics provides that the management should instill the employees to comply with the stated principles. In encouraging the employees, the management may contemplate to reward employees who perform exemplary in their operations. It is management’s duty to assess the various priorities that are relevant to the organization after an assessment has been conducted; as such, it should not conflict with the other stakeholders’ interest.

In addition, the Code provides that customers should be maintained and encouraged to buy the company’s product through developing and distributing products that meet the customers’ requirements—price, quality, safety. Shareholders are protected by the Code as it ensures that their investment in the company earns competitive returns (Fernando, 2009). In safeguarding the societal from exploitation, the Code ensures that the Company undertakes its activities in conjunction with the set laws and regulations of the region. Where the corporate social responsibility is a necessity, the organization can advertently undertake the activity (Shell.com).

The organization Code of Ethics may not include all the interest groups in society. The management may perceive it necessary to incorporate other interest groups in the ethical standard of the organization. As a CEO of Shell Company, I will ensure that the existing Code of Ethics is modified to incorporate the creditors and debtors’ interest in the organization. This will reassure creditors of their investment and resource distribution to the organization. In addition, as competition is becoming rampant in the society, there is a need for developing a code of ethics that will enhance the integrity in the organization.

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Change is inevitable in every leading organization. When the integrity value is incorporated in the organization Code of Ethics, the employees and stakeholders will have no option but to abide with it. Although resistance from the organization’s employees is paramount, the management should educate the employees on the relevance of the changed Code of Ethics in the current economy. For success to be achieved, an organization should not rely on the past strategies, but implement new strategies to meet the competitiveness in the economy. The modified code of ethics will ensure that the organization’s culture is accepted globally. The cases of corruption and mismanagement of the stakeholders’ funds will be outdated (Fernando, 2009).

In conclusion, ethical consideration is vital for any organization. The code of ethics provides the third parties and employees with the company’s strategies to safeguard their interests. Although it is essential for an organization to rely on its initial code of ethics, the current volatility in the economy implies that change in the managerial and code of ethics is vital for the organization to be relevant.