The Concept of Code of Ethics and the Agency Theory

Business Ethics Paper
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Section 1
1 Define the concept of Code of Ethics, and critically evaluate its effectiveness in managing business ethics.
Business ethics constitutes a guide of principles tailored to assist professionals in carrying out business with integrity and honesty. The code of ethics document outlines the values and missions of the organization or business, how professionals should handle workplace problems, the ethical canons centered on the company’s core values and the standards to which the employee is bound. In addition, the code of ethics, or rather the ethical code, could incorporate business ethics, employee conduct code, and professional practice code.
The code of ethics plays a critical role in managing business ethics. Managers within organizations face ethical dilemmas in their routine practice contexts. There is rarely a decision that a manager makes which does not include the ethical facet or dimension of it. Apart from facing ethical problems in their decision-making processes, they deal with ethical issues as they conduct their leadership roles, thus reiterating the need for business code of ethics. Whether they are taking part in planning, motivating, organizing, communicating, or other management roles, managers handle the fact that issues could be wrong or right, unfair or fair, coupled with the potential that justice or absence of it could impact their actions, behaviors, or decisions. In that vein, the code of ethics enables managers to manage business ethics, particularly when handling various values within work contexts. It helps managers organize empowered working teams to increase productivity, prevent bribe-taking, and cultivate business values into professionals.
2 Define what Agency Theory is and critically evaluate its possible problems
Agency theory is a concept that attempts to delineate the interaction between the principal and the agent where the former delegate decision-making authority or work to the latter, who performs the duty under the binding contract. It is a theory that is useful to examine service agent dishonesty or fraud. The warranty provider constitutes the principal that delegated the specific warranty checking to the service agent. Agency theory involves solving two fundamental problems that could happen within the principal-agent engagement. The first problem emerges when the two individuals have divergent objectives. It is increasingly challenging or expensive for the principal to evaluate and verify the agent’s actions and whether they behaved properly. The second problem entails the risk sharing that happens when the agent and the principal have conflicting attitudes to risk, particularly due to various uncertainties. Each party could prefer divergent actions due to diverse risk attitudes or preferences.
3 Critically evaluate what Sustainability marketing is, and what makes it important?
Sustainability describes the continuity in adopting practices and behaviors that ensure t...