A New Ethical Code for Aveve Executive Management

[pic 1][pic 2]

[pic 3][pic 4][pic 5]

1. Executive summary

This report focuses on establishing a new code of ethics for Aveve. It is written upon request of the Aveve Executive Management team, as our previous code of conduct was severely outdated. It did not take societal trends into account and did not focus on the changing practices business is confronted with nowadays. The bottom line is that the importance of a proper guideline, leading us through doing business in a socially and environmentally responsible way, cannot be underestimated. Therefore, it needs to be addressed properly, which will be taken care of in this report.

This report investigates good and bad examples of ethical codes of existing companies through a firm analysis of both written and oral sources. In this way, it is clearly visible which elements of a good ethical code of ethics we want to pursue for Aveve. Of course, this is also applicable for the other side of the medal: the elements ones we do not want to implement at all.  We chose to focus on personnel policies, sustainable products, eco-friendly labels and to pinpoint the exact opposites. The examples we will investigate include Starbucks, Rosy Blue, Lush, Nestlé and so on. This is a melting pot of companies, all operating in different industries. This is a conscious choice, as it should not be narrowed down to the one industry Aveve operates in.

Firstly, a brief introduction about the topic will be given. In that way, it will become clear why a good ethical code is of great importance for Aveve. Secondly, the domains a code of ethics should cover will be discussed. Thirdly, this report will proceed to the good examples and the bad examples of codes of ethics.  In the end, you will find a recommendation on how to establish our new ethical code in the best possible way.  

1. Table of Contents

1.        Executive summary        2

2.        Table of Contents        3

3.        List of figures        4

4.        Introduction        5

5.        Company analysis – work field examples        6

6.        Conclusion        16

7.        Recommendation        17

8.        Bibliography        19

1. List of figures

Figure 1: Are Ethics More Important to Younger Generations of Consumers [Illustration]. (2016, July 29). Retrieved May 8, 2018, from https://www.morganstanley.com/ideas/ethical-retailing-consumers-survey

Figure 2: Starbucks. (n.d.). Greenhouse Gas Footprint Starbucks [Illustration]. Retrieved April 28, 2018, from https://www.starbucks.com/responsibility/environment/climate-change 

Figure 3: [Code of Ethics noun] [Illustration]. (n.d.). Retrieved May 8, 2018, from https://dictionary.cambridge.org/dictionary/english/ethics https://dictionary.cambridge.org/dictionary/english/code-of-conduct 

Figure 4: Procurement Leaders. (2016, March 31). Salaries between genders [Illustration]. Retrieved May 12, 2018, from https://www.forbes.com/sites/jwebb/2016/03/31/women-are-still-paid-less-than-men-even-in-the-same-job/#3b6f8347099f 

Figure 5: AP. (n.d.). After 'monkey hoodie' scandal, H&M hires diversity leader [Illustration]. Retrieved May 14, 2018, from https://www.usatoday.com/story/money/retail/2018/01/17/after-monkey-hoodie-scandal-h-m-hires-diversity-leader/1039748001/

Figure 6: Courtesy of Fair Trade, UMass Boston. (2013, August 23). The Dark Side of Chocolate: Child Trafficking and Illegal Child Labor in the Cocoa Industry [Illustration]. Retrieved May 14, 2018, from http://www.umassmedia.com/art_lifestyle/dark-side-of-chocolate-exposes-the-seedy-underbelly-of-the/article_2401290a-0b30-11e3-9d63-001a4bcf6878.html

Figure 7: KdG logo [Illustration]. (n.d.). Retrieved April 26, 2018, from :

1. Introduction
   

Ethical codes in business practice are a subject we cannot turn a blind eye to anymore. In today’s world, considering the ever-changing nature of business and growing diversity in the workplace, we cannot lag.  We want to be an employer that contributes to maintaining a healthy society in a stable world. Secondly, we are convinced that a responsible way of doing business is key to create happy employees, which is key to creating happy customers. The days of irresponsible and unethical business practice is slowly coming to an end, seeing that young generations are more conscious about corporate social responsibility, which is also reflected in the graph below. (Morgan Stanley, 2016)

As the reader, you will learn what makes a code of ethics successful and what absolutely does not. What makes people at Starbucks love their job, where does Lush get its good environmental scores from? Why is Nestlé considered one of the most ethically malicious companies? What do you do about discrimination in the workplace?

Investigation of these questions via examples of large companies will make clear which practices are worth making an extra effort for, and which aren’t. In this way, we can come to an ethical code that will create a good working environment while also doing good to society: it will be clear which sea to sail with Aveve. This is important to safeguard the future of our business and all the subjects related to it. [pic 6]

 https://www.morganstanley.com/ideas/ethical-retailing-consumers-survey

1. Company analysis – work field examples

1. Code of Ethics – definition

[pic 7]

       Code of ethics, Cambridge Dictionary

As mentioned in the introduction, various codes of ethics will be examined. So, let us start with the definition before we move on. According to Investopedia, the code of ethics is “a guide of principles designed to help professionals conduct business honestly and with integrity.” (Investopedia, 2018)

Organizations use their code internally as a guideline for their employees. Employees can handle ethical problems that may occur in their daily life. It guides them to find a solution in a correct way and according to their code. Externally an organization uses the code of ethics as a statement to clarify their mission, values and principles. The code will be implemented in the way the company works. It describes the desired behavior that the organization wants their employers and employees to have. (Ethics & Compliance Initiative, 2018)