Every organization must have a code of conduct regardless of the underlying legal mandate. A code of ethics has value internally as a guideline and externally as the statement of corporate values. A proper code of conduct clarifies the organization's mission, ideals, and principles and connects them to professional conduct standards (Kotzian et al., 2021). Moreover, a code of conduct articulates the morals that employees should reflect and creates in them the desired behavior. Values refer to "what we choose as worthwhile or believe to have merit in a general or broad sense […] are deep-seated ideas and feelings that manifest themselves as behavior" (Grigoropoulos, 2019, p.168). In essence, a code of conduct becomes the benchmark for measuring performance, both individually and organization-wide, and evaluating behavior.

Also, a code of ethics guides the organization's decisions, policies, and programs for business. An organization's ethical philosophy impacts its bottom line, productivity, and reputation. Ethics in an organization is crucial since unethical behavior costs a firm its reputation and profitability. To this end, the paper analyzes Morinda Corporation's Code of Ethics by focusing on the rationale for choosing the ethics code.

One of the reasons for developing the ethics code is compliance. Every business must adhere to the laws that regulate issues such as safety standards and hiring. Apart from setting guidelines for conduct, compliance-based codes also inform penalties in case of violation. Any law or regulation forms the rules that adhere to daily business interactions. Legislation such as the Sarbanes-Oxley Act (2002) mandates individuals who serve on boards and public company leaders to implement codes. Thus, it is imperative to develop company codes to conform to the national legal requirements. The Sarbanes-Oxley Act was a direct consequence of the infamous Enron scandal where executives falsified financial documents to gain selfishly (Calinovici, 2018). The law details what institutions must do. In this case, Morinda's Code ensures that the finance department provides complete and truthful records that align with the International Financial Reporting Standards (IFRS), as well as the Generally Accepted Accounting Principles (Gwardzinska, 2019). Notably, a comprehensive code of ethics enables an organization to have extra protection even if one employee commits fraud or other criminal acts while using the company's name. For instance, when a purchasing manager defrauds suppliers, the organization's Code of ethics will help convince the court that the firm did not endorse the behavior.

The Code is critical in building customer loyalty (Iglesias et al., 2020). Consumers will not let firms take advantage of them if they become victims of unfair treatment, such as overcharged products. The customers are unlikely to be repeat customers. A loyal customer base is a key to long-term business success since dealing with existing customers does not entail marketing costs compared to acquiring new ones. A firm's reputation for ethical behavior fosters the creation of a more positive image (Iglesias et al., 2020). The positive image can lead to new customers, primarily via word-of-mouth.

In contrast, having a reputation for unethical practices can damage a firm's reputation, hindering the opportunity to bring new customers. With the current era of social networking, dissatisfied consumers can quickly share information concerning their bad experiences with a company. Nonetheless, Morinda Corporation maintains a code of ethics that considers the treatment of customers to prevent such issues from occurring and ultimately damaging its reputation. For instance, the Code covers integrity and responsiveness, representing two vital aspects of customer interaction.

The ethics code promotes a positive work environment. Employees must remain ethical ever since their first job interview with the company. Employees must be honest concerning their

capabilities and experience. Essentially, others view ethical employees differently, as they perceive them as team players instead of individuals. Such employees develop positive relationships with their colleagues, and supervisors trust them with confidential details, often giving them more autonomy than others. Unethical employees expose themselves to limited chances of advancement in an organization. Another impact is dismissal. Extreme cases of unethical behavior include employee theft or fraud. The cost of unethical employee conduct is high. In sum, the codes promote a positive work environment for everyone.

Ethical codes also affect the organizational culture. Achieving this ideal requires a positioning process integrating ethics and corporate mission, ideals, and strategies. Ethical principles strongly impact social tenets. Therefore, alignment is pertinent to interactions as it defines interpersonal anticipations. The result is a principled organization that represents the desired one. Also, it leads to an enhanced internal and external relationship. All parties involved experience an excellent and consistent treatment that leads to the growth of an ethical culture. A fantastic opening awaits firms that are attentive to the moral observances integrated into the daily functioning of their business activities. Moreover, these ideas make Corporate Social Responsibility (CSR) the core of management (Grigoropoulos, 2019). They provide for employees' well-being while guaranteeing that all stakeholders profit.

A code of ethics entails a set of principles that intend to instruct professionals to behave in honest ways that benefit every stakeholder involved. A business drafts a code of ethics in a customized way to suit its specific industry and requires every employee to adhere to it. Failure to comply with an ethical code attracts several adverse effects to a company. The reasons for creating a code of ethics are numerous, including compliance, building customer loyalty, legal considerations, among others (Iglesias et al., 2020).

References

Calinovici, V. (2018). Can be the code of ethics an important piece of the big picture companies' puzzle? LUMEN Proceedings, 5(1), 40-48.

Grigoropoulos, J. E. (2019). The role of ethics in 21st century organizations. International Journal of Progressive Education, 15(2), 167-175.

Gwardzinska, E. (2019). Standardization of competencies and qualifications of customs representatives of the EU Member States. http://biblio.umsf.dp.ua/jspui/handle/123456789/3334

Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2020). Co-creation: A key link between corporate social responsibility, customer trust, and customer loyalty. Journal of Business Ethics, 163(1), 151-166.

Kotzian, P., Stöber, T., Weißenberger, B. E., & Hoos, F. (2021). Effective, but not all the time: Experimental evidence on the effectiveness of a code of ethics' design. Business and Society Review.