Ethical codes are adopted by organizations to assist members in understanding the difference between ‘right’ and ‘wrong’ and in applying that understanding to their decisions. An ethical code generally implies documents at three levels: codes of business ethics, codes of conduct for employees, and codes of professional practice.
Code of ethics (corporate or business ethics)
A code of business ethics often focuses on social issues. It may set out general principles about an organization’s beliefs on matters such as mission, quality, privacy, or the environment. It may delineate proper procedures to determine whether a violation of the code of ethics has occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Violations of a private organization’s code of ethics usually can subject the violator to the organization’s remedies (such as restraint of trade based on moral principles). The code of ethics links to and gives rise to a code of conduct for employees. Basically business ethics deal with the moral beliefs of the owners of the business towards the employees code of ethics(business of ethics) focus on social issue of organization. It focuses on development of business, mission of business, plan of business development, it determines privacy, environment and great plan to deliver business at the top level.
Code of practice (professional ethics)
A code of practice is adopted by a profession or by a governmental or non-governmental organization to regulate that profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account of what behavior is considered “ethical” or “correct” or “right” in the circumstances. In a membership context, failure to comply with a code of practice can result in expulsion from the professional organization. In its 2007 International Good Practice Guidance,Defining and Developing an Effective Code of Conduct for Organizations, the International Federation of Accountants  provided the following working definition: “Principles, values, standards, or rules of behavior that guide the decisions, procedures and systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all constituents affected by its operations.”
Code Ethics Issues
Code of Ethics
A code of ethics is a set of principles and rules used by companies, professional organizations and individuals to govern their decision making in choosing between right and wrong. Depending on the context of a given code of ethics, penalties and/or sanctions may result from a violation. Codes of ethics are generally used in the business and professional context to assure the public that corporations and members of regulated professions are acting in a socially and professionally acceptable manner. Organizations with an established and published code of ethics have in place review processes and appeals procedures to guard against malicious or self-serving use of the code for individual benefit.
Code of conduct (employee ethics)
A code of conduct for employees sets out the procedures to be used in specific ethical situations, such as conflicts of interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code of ethics occurred and, if so, what remedies should be imposed. Codes for Individuals
Individual codes of ethics are most commonly seen as part of the tenets of a religion but can also be considered to be those unwritten rules of behavior instilled in an individual by their upbringing and environment. Society at large assumes that certain ethical behaviors are defined regardless of religion, geographic location or nationality. Examples of societal ethical behavior can include such things as: * Respect for another’s property
* Refraining from violence against another
* Treating others with civility