WOMEN’S UNIVERSITY IN ARICA
Addressing gender disparity and fostering equity in University Education
FACULTY OF MANAGEMENT AND ENTREPRENEURIAL DEVELOPMENT STUDIES
BSc HONOURS DEGREE IN ACCOUNTING SCIENCE
EVENING CLASS
Full Name of Student: Kudzai Murairwa
Student ID: W191279
Course Code: HRM213
Course Name: Corporate Governance
Lecturer: Mr Muzungu
Date: 30 October 2020
Assignment 1: a) The CEO has asked you to develop a formal code of conduct and ethics for
XHING. Discuss the key features of a corporate code of business and ethics that you will cover
in draft code. (15).
b) Discuss what is meant by personal ethics, corporate ethics, and professional ethics and
explain how they inter-relate.[Note: you should not refer to XHING in this part of the question.
(15)
Code of Business Conduct and Ethics
XHING plc
Vision
Our vision is to be the earth’s leading brand, utilising quality practices and employee
involvement for the production manufacturing industry, both in the domestic and international
markets that result in customer and employee satisfaction.
XHING plc inspire its employees to be the best they can be, engage in sustainable practices and
anticipate the needs of our customers and to maximise return to the shareholders while still
maintaining quality of our products.
Values
XHING plc’s continued growth, profitability and prosperity is linked to our employee’s ability to
make decision that are consistent with XHING’s core values and ethical principles. We are
committed to:
1. Passion for Excellence- Strive to achieve the best in every aspect of our business and in
every corner of the world
2. Integrity-hold ourselves to the ethical standards. To interact in an open, honest positive
manner and be guided by what is right.
3. Team work-work together with trust, openness, honesty and respect. Respect for the
rights of all individuals and respect for the environment
4. Inspired people build culture where people are motivated, engaged valued and growing.
Our people make the difference are the essence of XHING plc.
5. Ethical and responsible conduct in all our operations.
Mission
XHING plc inspire its employees to be the best they can, engage in sustainable practices
and anticipate the needs of our customers and maximise return to the shareholders while
still maintaining quality in our products.
1
Introduction
1.1 Honest and Ethical Conduct
1.2
The Board of Directors of XHING plc (together with its subsidiaries, the ‘Company’) will adopt
this Code of Ethic and Business Conduct (the ‘Code’) in order to:
a) Promote honest ethical handling of actual or apparent conflicts of interest;
b) Promote full, fair, accurate, timely and understandable disclosure in reports and
documents that the Company files with, or submits to , the Securities and Exchange
Commission (the ‘SEC’) and in other public communications made by the Company;
c) Promote compliance with applicable governmental law, rules and regulations;
d) Promote protection of Company assets, including corporate opportunities and
confidential information
e) Promote fair dealing practices
f) Deter wrong doings; and
g) Ensure accountability for adherence to the Code.
2
The work environment
2.1 Equal Opportunity
2.2 Human Rights and Law
2.3 Violence policy
2.4 Substance abuse
2.5 Safety policy
2.6 Gambling policy
2.7 Privacy policy
2.8 Misconduct explanation and policy
3
Conflict Of Interest
3.1 Corporate asset contributions
3.2 Running for public office
3.3 Insider trading and financial interests
3.4 Investments in companies employees do business with.
3.5 Employee political Interests
3.6 Significant financial interests in other companies
3.7 Securities transactions.
3.8 Taking out loans.
4
Protecting Company Assets
4.1 Preparing, maintaining and disclosing accurate records
4.2 Information security
4.3 Protecting communication and IT systems
4.4 Protecting external communication
4.5 Use of company property
4.6 Use of property owned by others (hired or rented property)
4.7 Facility security
4.8 Protecting intellectual property.
5
Anti-bribery and corruption
5.1 Doing business with government
5.2 Choosing and maintaining service providers
5.3 Receiving gifts and entertainment
5.4 Loans, bribes, and kickbacks
5.5 Relationships with former employees
5.6 Obligations of departing and former employees
5.7 Interaction with competitors
5.8 Relationships with affiliates, international entities and customers.
6
Attendance and punctuality
7
Absence without notice
8
General harassment and sexual harassment
9
Cell phone use at work
10
Dress Code
11
Substance Abuse
12
Build Trust and Credibility
The work environment
Employees should work with integrity, comply with laws, maintain a professional work
environment and comply with company policies. Employees should treat customers, colleagues,
and partners, ethically at all times. Individuals shall uphold the dignity and autonomy of
professions, maintain collaborative and harmonious interprofessional relationships, and accept
the professions’ self-imposed standards. Employees should be able to exercise independent
professional judgement in recommending and providing professional services when an
administrative mandate, referral source, or prescription prevents keeping the welfare of persons
served paramount.
Equal Opportunity
It is believed that each person is entitled to opportunities for employment and promotion based
on their talent and merit. Labour Act (1985) prohibits discrimination in wages on the bases of
sex. Labour Code also prohibits discrimination against a current prospective employee on the
grounds of race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy,
HIV/AIDS status, any disability in relation to the determination or allocation of wages and
salaries. The constitution supports the principle of equal pay to male and female employees for
work of equal value. It also supports the right to equal pay for equal work.
Human Rights and Law
XHING has a record of violating its workers’ rights therefore it is time to rectify.
It is the duty of the company to assure and upholds its promises, to comply with the employment
laws in every country in which it operates, and supports fundamental human rights for all people;
not to employ children or forced labour; not to allow physical punishment or abuse; to respect
the right of employees to exercise their right of employees to exercise their lawful right of free
association; enthusiastically supports laws prohibiting unjustified discrimination.
Build Trust and Credibility
The success of the business is independent on the trust and confidence that is earned from
employees, customers and shareholders. Credibility is earned by adhering to commitments,
displaying honesty and integrity and reaching company goals solely through honourable conduct.
It is easy to say what the company must do, but the proof is in its actions. According to the
Statutory Instrument 159 of 2018 (Genetically Modified Food and Labelling) states that the
GMO labelling shall apply to all food or feed irrespective of threshold of the content of
genetically modified material. If XHING chooses to use these genetically modified ingredients
then products should properly labelled as required by law. The company has to states its
ingredients on the label even with the inclusion of palm oil.
It is not acceptable at law to used unprotected rural communities water for the production of
products. To gain the customers trust again in the local market XHING should use distilled and
protected water and follow laws from the laws the Environmental Management Act.
It is mandatory for a listed company to give a sustainability report. The report communicates the
sustainability performance and impacts- whether positive or negative. XHING was not reporting
a true picture of sustainability. Therefore with the new code of business conduct and ethics this
will be definitely rectified .
b) Personal Ethics are moral guidelines that can help one through his or her personal and
professional life. They often develop from core values and work ethic into actionable goals used
in variety of challenging situations. [ CITATION Coy10 \l 1033 ] states that personal ethics are
closely associated with morality and a view of what is right and wrong. One’s personal ethics
can and likely will, contain common ethical guidelines that other people share, but they will vary
in their level of importance and how to maintain them.
Corporate ethics is a form of applied ethics that examines ethical principles and moral or ethical
problems that can arise in a business environment. They are organisational standards, principles,
sets of values and norms that govern the actions and behaviour of an individual in the business
organisation. These corporate ethics originate from individuals, organisational statements or the
legal system.
Professional ethics are principles that govern the behaviour of a person or group in a business
environment. Like values, professional ethics provide rules on how a person should act towards
other people and institutions in such an environment. Professionals and those working in
acknowledged professions such as medicine, law, divinity, accounting and many others exercise
specialist knowledge and skill. How the use of this knowledge should be governed when
providing service to the public can be considered a moral issue and is termed professional ethics.
According to [ CITATION Kra19 \l 1033 ] personal ethics and business ethics are essentially the
same thing, but there can be significant differences in how they are applied and when they are
appropriate to express. Both are moral principles that drive behaviour, and often, an individual’s
personal ethics code looks quite similar to a company’s business ethics code. The primary
difference between personal ethics and business ethics is whose behaviour they drive and
repercussions that result. Companies and individuals have different legal obligations and
different social expectations placed upon them. Professional ethics is related to the moral issues
which arise on account of specialised know how which professionals attain, and how the use of
this knowledge should be governed when providing a service to the public.
Therefore an accountant for an organisation has his or her own personal ethics that controls
her/his behaviour on personal level, the accountant is expected to behave in a certain way by the
organisation he or she is working, as a professional is expected to behave according to the
professional code.
Personal ethics Corporate ethics Professional ethics
integrity integrity Integrity
honesty honesty Honesty
loyalty loyalty Loyalty
Self- respect Empathy & Compassion and respect Respect for others
respect for others
friendliness
Personal responsibility Accountability Accountability
Lawfulness Law abiding
Equality and fairness Equality and fairness
Excellence commitment
Reputation & morale Reputation & morale
Trust worthiness Trust worthiness
Transparency
References
Coyle, B., 2010. Corporate Governance. 5 ed. London: ICSA Publishing Ltd.
Kramer, L., 2019. Similarities Between Personal E thics and Business Ethics. [Online]
Available at: https://bizfluent.com/info-7742837-similarities-personal-ethics-business-ethics
[Accessed 01 November 2020].
