However, the

process must be an inclusive one, drawing upon ideas, input and support

from individuals at all levels of the organization and representing a

wide range of functional areas.

Typically,

a code of ethics has two components.

The first section,

which sets the tone, is often a preamble and states the organization's

aspirations and overall mission. The second section specifically outlines

guidelines or principles to which members of the organization are expected

to adhere.

It's important

that the code be written in language and a style that employees can easily

understand, avoiding legal jargon and empty generalizations. It also should

include wording that indicates all employees are expected to conform to

the behaviors specified in the code.

When appropriate

for the employee population, the code should be translated into other

languages.

A code of ethics

should be tailored to fit your organization's specific line of business.

Consider identifying

different kinds of ethical problems your employees are most likely to

encounter and be sure that they are addressed in the code. Include examples

that reflect real-life situations.

To gain maximum

support of the new code, employees should be given a role in drafting

it.

Additionally,

before adoption, the code needs testing and validation with a sample of

employees drawn from all levels and different functional areas.

Promoting your

code of ethics sends the message that ethics is a critical issue-one which

shapes the organization's culture.

Send the code

to all employees, partners, suppliers, customers, and other relevant stakeholders.

It's a good idea to require that employees sign the code.

You may also

want to distribute it to employees in a portable form, such as a brochure

or a handy laminated card. Also consider framing and displaying your organization's

code or sharing it publicly by posting it on your Web site.

For the greatest

effectiveness, the code of ethics should be integrated into policies and

procedures throughout the organization.

A good practice

is to introduce the code in company training and orientation programs.

You might also consider making adherence to the code obligatory by including

it in employment contracts and linking it with disciplinary procedures.

Employees need

to be made aware that having a code of ethics can strengthen the environment

in which they work, as well as protect the company legally.

It is crucial

that leaders set a good example and live the code to its fullest, referring

to it whenever appropriate, (i.e., during employee performance reviews).

The code should

include the phone number or e-mail address of a contact person in the

organization who can provide interpretations.

You might also

consider establishing an ethics "hotline" employees can call

to ask questions or report suspected unethical activities.

CPAs point

out that a code of ethics is a living document and thus should be reviewed

annually for relevancy.

Changes in

society, the organization, and the environment within which the organization

operates need to be reflected in the code.

Be sure to

establish a system for regularly updating your codes of ethics.

The GSCPA is

the premier professional organization for CPAs in the state of Georgia.

With over 10,500 members throughout the state, the purpose of the GSCPA

is to promote the study of accountancy and applicable laws, provide continuing

professional education, maintain high ethical and work standards, and

provide information and accounting issues to the membership and the public.

For more information, access our web site at www.gscpa.org.

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