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Codes of Conduct and Their Affect on Organisational Performance

In: Business and Management

Submitted By Doug19
Words 1042
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Codes of Conduct and their affect on organizational performance

Introduction
According to Wikipedia, A code of conduct is a set of rules that listed all the responsibilities of or proper practices for the staff of the organization. All the employees in the organization should follow the code of conduct and have a common behavioral characteristics and work habits. This behavior has a common, internal communication and coordination will make it easier to achieve, for enhancing internal cohesion, improve efficiency across the organization, has a positive impact to the corporate image.

Nowadays, codes of conduct are being rapidly adopted in the organization all around the world. The effects of codes of conduct on employee’s perceptions and behavior have been thoroughly addressed. According to Jill(2013), the Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations (COSO) in 1992, defined Internal control into five elements: control environment, risk assessment, control activities, information and communication, and monitoring. In this five elements, the control environment is the most critical, but also the most difficult to effectively manage and evaluation. The COSO framework also points out that the control environment could help the organization to set the acting style and work atmosphere in order to motivate employees to form a line with the overall characteristics of the enterprise control consciousness. This kind of control environment is organization codes of conduct. In an effective code of conduct, employees are very clear what behavior is compliance, which behavior would be affirmative by the leadership. However, in the weak control environment, employees tend to ignore and often in violation of the provisions of the control program, and these acts provides opportunities in fraud of accounting statements and career (Jill,

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