Coruse Code : CRI 204

Course Title : Proessional Condut and Ethical Standard

Modul 3/ Lesson 3

Lesson 3
Code of Ethics and Code of Conduct

Learning Objectives:

In this lesson learners are expected to:

1. Differentiate Code of Conduct from Code of Ethics;
2. Discuss the important of Code of Ethics and Code of Conduct in
general; and
3. Discuss the principles of Code of Ethics and Code of Conduct.

Learning Content

What Is a Code of Ethics?

A code has a variety of meaning, it can be general or technical and it
may also vary on its usage. In this subject, the word code is defined as a
system of principles or rule, a systematic statement of a body of rules or law
especially as regards to those given statutory force.
A code of ethics therefor, refers to a set of guiding principles or best
practices designed to help professional as regards the standard of morality
expected of him as a member of an organization, society, body, or company.
It serves as parameters as to how a certain employee/member works with
integrity, honesty, and professionalism. (Power to choose right or wrong)
It may also serve as a “statement of values” that guides the behavior of
a person in the organization, society, or body as he perform his duty and in
dealing with others in order to attain harmony and prevent conflicts as they
work toward the attainment of the vision-mission of the organization. Thus,
every organization also established their core values in their respective
organization or society. It also serve as a guiding principles in making
decision as to what is right or wrong, what is necessary and unnecessary,
what is pleasant and unpleasant, what is just and fair in the exercise of one’s
authority and in fulfilling one’s duty.
It is also referred to as an “ethical code” which may encompass code of
professional practice, business code or employee’s code of conduct.
Violation of the code of ethics may give rise to disciplinary sanction
depending on the gravity and frequency of the violation and the standing rule
for giving sanctions in an organization or body. (A person chooses to return a
wallet that they found on the ground to lost and found rather than keep it for
themselves due to their personal ethic of honesty.)

Eight Principles of Code of Ethics

Principle 1: Legal Standards and Moral Standards
One of the strong foundation of Code of Ethics is the legal and moral
standards for it lay downs the legal and moral parameters in making decisions
as to what are right from wrong. Like for instance in the case of Code of
Ethics in the practice of one’s profession. The legal basis of its practice is the
very statute that recognize the exercise and enjoyment in the practice of such
profession. In a value-based Code of ethics, moral standards is the
fundamental basis of what value statement is very important in the
achievement of the organizations’ goals and objectives. What are not to be
done for they are generally wrong and what is to be done for it is the right way
things should be. (note police malfeasance and non feasance of duty)

Principle 2: Responsibility
Code of Ethics has the force of law or directives, thus it gives rise to
professional responsibilities to his profession, organization, and to the public
at large. This is based on the basic principle that comes with certain rights
and authority is a commensurate responsibilities that every members or
employee of an organization or company is duty bound to observe and
practice. For one should be accountable for his decisions and course of
action.

Principle 3: Non-Discrimination
Code of Ethics shall apply to all regardless of gender identity, sexual
orientation, or any distinctions or classification for it serves as broad
guidelines for all members or employees of a company or organization.

Principle 4: Competence
Code of Ethics is created in order to establish competency in the
organization or company. Without moral standards there will be no
consistency and decision making will be more complex for lacking of
sufficiency basis or guidelines.

Principle 5: Confidentiality
Enforcement of the provisions of the Code of Ethics may provides for
certain sanctions for violation which may either be a suspension or worst
termination or dismissal from the work or membership in the organization or
company. The process of handling violations of Code of Ethics should
generally be in the nature of confidentiality in order to protect both the
member and the organization or company’s reputation.

Principle 6: Inter-professional Relationships

In a large organization or company there is always a need to
established a Code of Ethics in order o harmonize and establish a clear inter-
professional relationships between and among the members of the
organization.

Principle 7: Client Welfare

Whether in the private or public sector in business of other service
oriented organization Code of Ethics is created in order to ensure that the
rights and welfare of the client will be served best. This would also advance
the image of the organization, profession, or the company.
Principle 8: Publication Credit
Code of Ethics must be published and properly disseminated to all
concerned so as to achieve the maximum implementation of the rules and
regulations. Any policies, rules and regulation before they can be realize must
definitely be communicated to the people concern for their appraisal,
acceptance before they can actually conform to such.

Source: Code Of Ethics: Eight Principles | Researchomatic

II. Types of Code of Ethics

Code of ethics may varies in forms and the demands for such
guidelines. In business or company there are basically three types of code of
Ethics namely:
1. Compliance-based Code of Ethics (Code of Ethics na nakabatay
sa pagsunod)
All company, business or organization as a matter of compliance
to laws, rules and regulations set by duly constituted authority should
follow certain guiding principles as regards hiring, promotion, and
safety standards. Since is it a compliance based code of ethics,
violation of which may create legal issues for the whole company or
organization or individuals and violations may lead to sanctions or
penalties.

2. Value-Based Code of Ethics

This type of Code of Ethics focus on the Core Values system in
a company or organization. It provides outline for responsible
behavior/conduct as one relates to the public. It requires greater
degree of self- regulation than the compliance-based code of ethics. It
may also provide . (Professionalism)

3. Code of Ethics Among Professionals

This type of Code of Ethics provides ethical standards in the
practice of one’s profession which are founded upon statute and
administrative issuance which a member of a particular profession is
expected to behave and conduct himself towards his professions, his
co-professional, his client, the society, and the state. Examples of this
are Code of ethics for teachers, for lawyers, doctors, criminologists,
and others.

III. Code of Conduct, Defined

Code of Conduct focus on a more specified course of action which
guides the member of the organization or company. It gives instructions as to
how to conduct oneself in his daily performance and in specific situations
setting what are appropriate and inappropriate as one discharged his duties
and responsibilities. Unlike Code of Ethics which is much broader in nature
Code of Conduct is more specific.
 Code of Ethics Code of Conduct
Broader in nature, for it sets whether an action Specific in nature for it is derived from the code
taken is right or wrong of ethics
Code of Ethics helps people make decision. Code of Conduct requires specific behavior
It sets moral standards that everyone should It sets how a person is expected to behave at a
observe. particular situation.
It must be morally driven. May not always be ethically driven

Sources:
Code of Ethics Definition (investopedia.com)
Difference Between Code of Ethics and Code of Conduct - Hosbeg.com

Key principles of Code of Conduct

There are ten fundamental key principles of Code of Conducts and they are:
1. Respect for laws and regulations
Every organization must always conform to the legal and ethical
standards and to make it more precise specific rule of conduct must be
identify in response to the specific situation confronting the organization or the
practice of the profession.

2. Respect for people

In every organization, company or business the concept of human
relation is very important thus, in order to prevent injustice and conflict both
the leaders and the subordinate must show respect to one another as they
perform their respective task. In the business the owner are required to
comply with certain standard in order to ensure the welfare and protection of
his personnel/employees so that in return they could effectively and efficiently
discharge of this responsibility.

3. Respect for the environment

There is a saying that man can forgive and forget but mother nature
can not forgive nor forget. Whatever good or bad things we have done to
preserve or destroy it will be return to us either as good or bad karma. Thus
across all profession and human endeavor we should never forget our
responsibility to our environment for it is one of the major priority.
4. Respect for competition law regulation.
All organization and company has competitors and it is something that
is encourage by the government in order to avoid monopoly and restraint of
trade. Healthy competition is what the government encourage so that each
and every company, organization or corporation will do its best in delivering
their services to the client.

5. Respect for rules on insider trading

This is related to the rights of the company or corporation to protect its
information, trade secrets and avoid sabotage. Thus, every personnel who
was given access and trust must keep confidential information for the safety
of the company or corporation.

6. Prevention of Conflict of Interest

Employee or personnel must avoid being in a situation that involves
conflict of interest between their personal and that of the profession or interest
of the organization.
It is prohibited by law for every private entity/person to commit undue
influences either to private or government authorities amounting to corruptions
in order to obtain favorable advantages or treatment. The law even has
provisions on prohibition of giving gifts to public officer for it might lead to
corruption and graft practices.

7. Protection of Activities
Every personnel or employee has an obligation to secure important
information, machinery, activities, or process from possible damage, loss, or
sabotage.

8. Transparency and integrity of information

Workers or employees who work with integrity and honesty are assets
to the company or organization. Transparency makes the working relationship
more harmonious and less stressful. In case that there are ambiguity in the
policies, rules and regulations a need for dialogue, conferencing and
discussion is best rather than to back fight.
IV. Importance of Professional Code of Ethics
Ahemed Shamim Ansary in his article written on July 24, 2019 at
Career Cliff.com mentioned numerous importance of Code of Ethics
especially in a work place namely:

Severely Insecure Person Seeking for Immediate Promotion. (SIPSIP)

We discuss in the earlier lesson that code of ethics helps in decision

making process. Thus in making an ethical and effective decisions it requires:
 1. Commitment - the desire and determination to do what is right no
matter what the cost will be.
2. Consciousness- sense of awareness to what is going on, act
consistently, and apply moral convictions to daily performance.
3. Competency - ability to effectively and efficiently collect, analyze and
evaluate information, carefully plan and established alternatives, and
foresee potential consequences and risks.

In making ethical and effective decisions involves three steps based on

the “Character-Based Decision-making Model” developed by Josephson
Institute of Ethics.:
1. All decisions must take into account and reflect a concern for the
interests and well-being of all affected individuals (“stakeholders”). It is
based on the Golden Rule -”help when you can, avoid harm when you
can”.
2. Ethical values and principles always take precedence (karapatan sa
pangunguna)
over non-ethical ones.
When there is a clear options between good and bad, right or
wrong one must always prioritize what is ethically right and good.
1. Perceiving the difference between ethical and non-ethical values can
be difficult. This happens when there is a conflict of interest making a
decision between what is needed and what one wants.
Managers, leaders, executives and other decision makers
should stick to what is ethically right and just. Although there are
certain scenario which would require some relaxation of the policies or
rules in order to best serve the interest of the majority or to give way to
another ethically right and just principle. The great challenge to
decision maker is when there are competing ethical options that may
not be possible of harmonizing that a choice must be made to set aside
one in favor of the other. But again the principle of general welfare
clause must be taken into consideration.
Seven Steps in making a choice between competing ethical options
according to Josephson Institute of Ethics:
1. Stop and think.
For one to make a better decision it is but proper to seat, relax,
and think for a while. Decision out of rash and strong emotion usually
lead to wrong decision. We have to clear out mind of so many worries
and thinking for with clear mind that one can better discern what to do
and what is best.
2. Clarify goals
Look back on the purpose for which the organization was
established. What is the primary and secondary goals. Which is are
short term and long -term goals? What must be prioritize? The problem
is that choosing one may hinders the other. It would really be a taught
decision really.
3. Determine facts.
It is very important for every decision to be supported by
sufficient, material, and credible information. That is what a prudent
man do in making decision. He consider all and every pertinent
information as well as the validity and reliability of their sources in
determining the credibility of such information as basis in decision
making. Just like a judge making a decision, considering all that has
been presented but it is subject to the critical analysis and evaluation
before merits can be given to such evidence.
4. Develop Options or Alternative.
Once a decision was made, list possible options on how to
achieve or make it work. It might be helpful to ask for trusted and
reliable people for their opinion so that you may have other perspective
make a wise decision. Options must be available so that when
something went wrong or things do not go according to the plan, there
are available alternative solution.
5. Consider consequences.
Remember that in choosing an options consider the possible
consequences. What would be the pros and cons. Those the benefits
would out-weight the possible loss. Would it be beneficial to all or at
 least to the majority if not possible for all. A win-win decision must be
done.
6. Choose.
Remember that sometimes it is not the amount of knowledge or
wisdom that we have that makes us commit a mistake but the wrong
decision, the wrong choice that he made. But you must make a
decision. If your decision is still not clear then try to do the following: (a)
think of someone that you can trust with respect to his judgment, (b)
think of person who has such experience, expertise, or sufficient
wisdom on the matter at hand and seek for advice, (c) What would be
the possible reactions of the people concerned if you will make such
decision?, and (d) follow the Golden rule: Treat others the way you
want to be treated, and keep your promise.
7. Monitor, evaluate, and modify if needed.
To determine whether things run smoothly it is important that
there is always a monitoring and evaluation. Without such we may be
blinded of what is really going on. Are things being done according to
the plan? Are we achieving our deadlines and objectives?

Ethical Dilemmas
It refers to a situation in which there is a need to choose between two
options that neither of which resolves the situation in an ethically acceptable
fashion. It is also referred to as moral dilemmas.

Characteristics of Ethical Dilemmas

1. A choice must be made between two (or more) courses of action.
2. Significant consequences for taking (or not taking) any action.
3. Each action is supported by one or more ethical principles.
4. Principles supporting the unselected courses of action will be
compromised.
5. Fundamentally ethics is knowing what is right and doing it.
6. The heart has reason that reason will never know. (Pascal)