Part study carried out by Lee and Yoshihara (1997)

Part of McDonalds code of conduct policy is their duty to
make sure they buy good quality food from suppliers. Implementing ethical
policies prevent McDonalds from making bad decisions such as purchasing goods
from foreign suppliers who employ child labour, pay substandard wages, or have
sweatshop working conditions in their facilities. The firm has created a
culture where every worker is respected and gives every individual priority as
they believe it is the workforce who hold the key to its valued success. Making
individuals know how important they are and valuing them has enabled McDonalds
to improve its service provision to its clientele.

Showing customers that they value integrity will
significantly shape the behaviour as they will feel reassured by the existence
of codes of ethics by believing that the firm values its integrity and operates
accordingly when doing business. This will shape the experience and behaviour
of the individuals as it requires them to think in a certain way and act

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According to Laufer and Robinson (1997), when employees
witness managers following ethical policies it positively effects other
individual’s behaviour to also act in accordance with the codes of conduct. A
study showed that management accountants working in organisations with
corporate codes report less wrongdoing than respondents in organizations
without formal codes. (Somers, 2001). Furthermore, Scalet (2006) stated that
organisations who had adopted codes of conduct created patterns of trust
amongst employees. These studies clearly show that ethical policies encourage
managers and to act with integrity.

A study carried out by Lee and Yoshihara (1997) was designed
to analyse the ethical behaviour of Korean and Japanese business executives
after implementing codes of conduct. The results portrayed a vital factor
showing that employees were willing to change and embrace the morals and values
of the firm after knowing that the executives also follow the ethical policy.
This shows how an employee’s ethical behaviour can change after knowing how
much importance the ethics code is to the business executive’s personal values.
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Usually, managers and directors will act ethically as a
result of their internalized moral core values.  Whilst establishing
behavioural standards in corporations and written codes of conduct to help
strengthen moral values and encourage ethical organizational behaviour, it is
important to know that everyone will behave and act differently to the specific
guidelines within specific workplace areas.
of conduct would also affect the public for example, McDonalds is perceived by
the public to be ethically and socially concerned which is honoured and
respected by other individuals who have no knowledge of its actual working.

According to Jamal and Bowie, (1995) codes of conduct promote
ethical behaviour in organisations. In order for companies to build a
sustainable employee culture it is essential to set the expectations for
employee behaviour. For example, the codes of conduct for Lehman Brothers
corporation, an investment bank which went bust during the financial crisis in
2008. Their
ethical policies were designed to transform their culture by guiding the
executives during the crisis to make strategic decisions and communicate
effectively with the employees.NS1