What is the purpose of a company's code of ethics?

A company’s code of ethics is a set of values and standards that outlines how the company and its employees should act in a professional setting. It serves as a guide for ethical decision-making and helps protect the company’s reputation. The purpose of a company code of ethics is to ensure that everyone is following ethical guidelines and that the company is conducting its business in an ethical and responsible manner. A company’s code of ethics sets a standard of behavior for employees and directors. It sets out guidelines to help ensure that all decisions are made in an ethical and legal manner. It also serves to build trust between the company and its stakeholders, such as customers, investors, and suppliers. It communicates to employees the expectations and values that are important to the organization. It can also provide employees with a framework for making decisions in a moral and legal manner. In Oklahoma, all companies must adhere to a code of ethics as part of business law. Establishing and enforcing a code of ethics helps protect the company’s reputation and build confidence in the market. Companies are also required to have a process in place to investigate and address any ethical issues that may come up. Following these guidelines helps ensure that the company is acting in an ethical and responsible manner.

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What is the purpose of a company's code of ethics?

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