Having a code of conduct in any organization is an imporant element for any organization because it determines the standards of behvaior on which the organization will set its internal and external environment. The actions that are acceptable and unacceptable in any organization from the employees, managment, suppliers or vendors and any such group whose acions can effect the organization in any way. It defines the policies of the company, the rules followed for everyday activities, the standard of ethics followed at each level of management and most iomportantly the action taken against any behavior which is against the code of conduct or fraudulant. This code of conduct not only avoids such fraudulant behavior from happening but also has determined rules for the action to be taken against the employee involved in such a behavior. This helps in maintaining the discipline and ethical environment in the organization with the consent and cooperation of all.
Fraudulant behavior can be defined in a number of ways. Right from taking a pen from the office stationary for personal use to creating false bills in company name and earning money or selling compnay products in unlawful manner, all these actions and any such action whether big or small will fall in the category of fraudulant behavior and action should be taken against the person involved in such acts. The steps taken against the employees involved in such act will depend on the nature of the act, how much it has effected the company profits or company environment on the whole. For example, if a person is caught in a big level of such act which is against the code of conduct of the company but the employer does not take any action against him, the other employees will get a wrong indication that getting involved in fraudulent acts in the company is not big issue and may encourage them also to do the same. In the same way if a small act which hardly makes a difference on any aspect of the company is being caught but big action is taken against, this may discourage the other employees showing an injustice done with the fraudulent for a small act of his. Hence the action taken against the fraudulent should be justified in all ways. Taking correct action by the help of the legal laws made for environmental culture can help in such issues. The code of conduct will refer to these laws and create the standards of their code of conduct to be followed in their organization.
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