Evaluation of a business code of ethics Essay

Ethical appearance from employees is the fundament for a successful business. Trevino and Nelson define honorable behavior as being, pursuant(predicate) with the principles, norms, and standards of business practice that look at been agreed upon by society (2007, p. 16, para. 1). A canon of moral philosophy is an example of the way a lodge would entertain employees act an instruction manual for honorable behavior. Simply possessing a reckon of honest motive does non guarantee ethical behavior from employees.Therefore, a law of ethical motive mustiness outline consequences for violations. Employers must perform the enroll as substantially. A code of morals ensures that, if followed, employees will work diligently with integrity and expertise, c atomic number 18 confidential information, and do so in a professional manner.Implementing and maintaining a code of conduct and morals creates stakeholder confidence in a multinational monetary operate comp both. MetLif e is one of the largest fiscal services companies in the world as well as the anatomy one conduct indemnity compevery in the United States providing services worldwide in the interest argonas investments, monetary planning, banking, and insurance. MetLife was formed as a sh ard insurance comp each(prenominal) in 1864 in the excite of the American well-mannered War.The follow would insure Civil War veterans against disabilities because of wartime injuries and sickness. After a rough leap out in the first four stratums and some(prenominal) reorganizations, the comp all started to focus primarily on the life insurance perseverance a move that would sacrifice MetLife as one of the largest companies in the United States. everywhere the span of 143 years MetLife grew significantly through acquisitions and continue to provide superior service and support to clients. or so recently MetLife acquired American Life Insurance bon ton (ALICO), and provides people financial ser vices, life insurance, health insurance, and investments, in the following counties Australia, China, India, Japan, Korea, and Pakistan. This acquisition has given MetLife a superior spot in the global financial services market making MetLife the largest insurance company in the world. With more(prenominal) than 50,000 employees worldwide, managementaccentuates an ethical bodied stopping point with a conformity department that goes in a higher place any state or federal regulations with strict conformation monitoring.Management also creates a positive working environment free of harassment in any form and develops employees with goals of creating professional relationships that last a spirit as well as achieving high levels of sales and pay. In addition to MetLifes code of ethics all officers, managers, and employees are must follow and heed all applicable states and federal laws, company policies, and indus leaven regulations where they hold a license to avoid any percep tion of impropriety. MetLifes Chief Executive ships officer Robert Henrickson states, For 140 years, MetLife has helped various(prenominal)s and institutions build and protect their most rich assets (MetLife, 2005, p. 2).In accordance with this reputation, MetLife has a code of ethics in place to support these efforts with the core determine integrity and honesty as the foundation of the ethical culture indoors the company. These core values are vital to the company achieving the MetLife vision to build financial freedom for everyone. The code of ethics at MetLife is a voluntary code of conduct that emphasizes a duty-based ethical outline.The foundation for the code is broad and encompasses the following corporate values integrity, expertise, suitability, full disclosure, fair competition, service, brand, confidentiality, professionalism, and reputation. However, a code of ethics does not guarantee ethical behavior. Managers carry out the code of ethics with employees as well as administer legal or disciplinary sue that cases from a deviation from the code of ethics.In the financial services persistence deviations from accord may result in a producer and manager get in serious trouble. Trouble can be anything from fines to arbitration hearings and loss of licenses and registration. Therefore, many employees genuinely try to make a living and build a successful career following the code of ethics.This is a result of the organizational culture at MetLife. Employees and managers must make minimum sales number each year and failing to hit target total results in termination. Any major deviation from MetLifes code of ethics that results a fine or legal action against the company will have the akin terminus. There is a conceptive sufferance and sticknce to the code of ethics.For example during quarterly form meetings employees get refresher training on outstanding state and federal tax laws that reposition often. The rear this has on the organi zation is a positive one. However, in that location are exceptions to this as some employees and competitors employees just have poorly personal ethics and draw negative attention to the effort for bad business practices.A recent example is the Ponzi schema committed by Bernard Madoff. In one of the lash periods of economic uncertainty Madoff defrauded thousands of investors out of billions of dollars and at the akin time planted the seeds of consumer mistrust against individuals working in the financial services industry. Management expects employees to do the remediate thing for clients. The primary focus for employees is to achieve MetLifes vision through fair sales practices, gauzy customer service, and making suitable recommendations to clients.Employees must gravel to strict corporate deference monitoring that goes above state and federal regulations. For example an independent insurance instrument, non-MetLife, must arrest 16 hours of state man ensured act instr uction classes each year whereas a MetLife agent must comply with state regulations as well as MetLifes annual continuing education courses. MetLifes courses are intentionally more in-depth than the substantive that the state courses cover and emphasize ethics in all business practices.MetLife is proud of the reputation the company has established in the financial services industry and expects employees to operate their personal business with the highest standards of conduct in all business endeavors (MetLife, 2010, p. 7). Managers also follow the same code of conduct andethics. And can be held accountable for employee violation of the code of ethics. Management must adhere to strict company guidelines and complete many more continuing education classes that cover a compartmentalisation of topics some that employees take as well as many early(a)s that focus on corporate compliance regulations.State and federal laws to abide by so MetLife has its own regulations that cover all sta tes and goes beyond any individual states laws or regulations. severally employee, manager or producer must complete an annual compliance review and demonstrate an grounds of the concepts and practices covered by the code of ethics. Corporate ethics and compliance managers hold quarterly and annual compliance meetings with all employees to discuss industry incidents and violations that cost other companies and producers money, court proceedings, and careers.In the code of ethics there is little space for change to make monitoring employees easier or any individual employee more compliant. In the financial services industry state and federal laws change or are undergo tweaks a little each year. To that end MetLife releases a code of ethics each year that outlines any new practices or changes in the way employees are to do business, always keeping standards consistent with MetLifes vision.In short, a code of ethics is a necessary tool for management in an organization such as MetLif e. All directors, managers, and employees are judge to read the code of ethics and appoint to it when making critical decisions. The company keeps employees up to date with compliance meetings and maintains a high standard of compliance monitoring and reviews.However, ethical behavior is not guaranteed plainly because these systems are in place or obtainable for review. Managers set the example for employees and set the standard for the employees they supervise. low the duty-based system in place employees are expected to do the right thing for clients. The company hires from within only the best employees into management positions. This ethical system keeps organization simple while maintaining a strong compliance keeps financial transactions ethical and in line withMetLifes vision to build financial freedom for everyone.ReferencesMetropolitan Life Insurance Co. (2009). charge Our Promises. Retrieved February 6, 2011 from www.metlife.com/assets/investments/products/annuities/ CLVA6037-3.pdfMetropolitan Life Insurance Co. (2010). Representative form Manual. How We Do Business. Retrieved February 5, 2011 from https//imetlife.metlife.com/wps/myportal/rpp/content?contentId=8ac6c697baa72210VgnVCM1000000ae818acRCRDTrevio, L. K., & Nelson, K. A. (2007). Managing business ethics reliable talk about how to do it right (4th ed.). Hoboken, NJ Wiley.