What is the code of ethics in the concept of business incorporation?
Posted on Tuesday 7 July 2009
Business incorporation is the development of a new corporation serving as a business under the laws of the state and country. This corporation can be a non-profit organization, or a profitable organization. With the forming of a new business corporation, there remains associated the code of ethics that the corporation usually maintains to provide its best business services to its clients and customers. Business ethics are moral principles that are applied in the corporate and commercial world to provide guidelines to all employees of the organization for acceptable behavior throughout their policies and strategies.
Is the Corporation a Legal Entity?
The first code of ethics for the business organization is that whether the organization is a legal entity or not. Being the owner of a business corporation you are required to file the articles of incorporation declaring the address of your organization, the names of the vice presidents and the shareholders, the number of stocks the organization hold, and the name of the partners if any. The law usually considers an organization as a person who has a distinct personality and thus it demands morality from the corporation. Filing of articles of incorporation is the first step to give your organization a legal entity.
Employee, Employment and Business Ethics
Your organization being a small or a large publicly traded one requires that it follow the laws for fair terms of employment. Under the U.S. jurisdiction, an employment relationship is usually governed by the at-will principle. The fair judgment from the employer is generally expected by employees of the organization. The employer also holds authoritative powers to dismiss any employee without prior notice under an at-will doctrine. The violation of laws maintained by the organization also results in the termination of employment.
Each corporation has its own ethics policies. Corporations usually choose the course of highest integrity while maintaining the codes of ethics and moral principles. Every senior and junior employee of the organization is expected to deal fairly with each other and also maintain a good relationship with the corporation’s customers, competitors, suppliers and even other third parties. Employees who deal unscrupulously and profit at the cost of violations of the law are not tolerated by any corporation.
Business Ethics and the Government Rules
The corporation is solely responsible for maintaining government rules, laws and regulations as applicable to the business. Local customs and traditions are subject to change from place to place. So, it is important for a corporation to recognize this and conduct their workflow accordingly.
TAGS: Business,
Business Incorporation
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