Analysisn of Premier Food`s Code of Conduct and Business Ethics Essay

Analysisn of Premier Food`s Code of Conduct and Business Ethics - Essay Example These values are reflected not only in the company’s code of conduct, but in Premier Foods’ annual report to shareholders which emphasise corporate social responsibility as a key business success factor. Critical analysis of Premier Foods’ Code of Conduct Premier Foods has established its code of conduct, a document illustrating the expectations of both managers and employees to satisfy demands for ethical business behaviour. The code of conduct stipulates that manager should be leading by example as well as creating a decentralised environment in which employees are allowed to express their concerns openly (Premier Foods 2012). Premier Foods identifies one of its core values as trust (Premier Foods 2012), the foundation by which employees are willing to follow leadership guidance and example. According to Farrell and Knight (2003, p.541) â€Å"trust is embodied in the regulations, rules and policies by which leaders seek to get accepted by others†. The co de of conduct acts as both a reinforcement of expectations of ethical behaviour and also as a sanction by which to ensure compliance, backed by managerial role modelling of desired behaviours to gain employee commitment to achieving strategic goals. Premier Foods establishes an ethical climate by using the code of conduct to promote social justice. Under social justice theory in ethics, it is assumed that every individual in society or in the organisation maintains an inviolability of justice and human rights that cannot and should not be overridden by the broader organisational culture (Rawls 2005). The expectations of managers in promoting equality and rights in the workplace are reflected in the corporate code of conduct, emphasised under the company’s â€Å"treating people fairly† guidelines. Premier Foods ensures that fair treatment is imposed on the employee population with decisions made based on individual merit (Premier Foods 2012). The company also ensures eq ual opportunities for all employees through objective management systems. These aforementioned managerial responsibilities highlighted in the corporate code of conduct are designed around transformational leadership theory, one in which managers are interactive with employees, regularly impart mission and vision principles to gain commitment, and where managers utilise role modelling to promote ethics under social learning theory (Fairholm 2009; Schlosberg 2006). This is how trust is instilled into the organisation: the business does not simply promote its belief in social justice and equality, but injects a clear example of its ethical values into the philosophy of management utilised by leaders in the organisation. Premier Foods is able to maintain its tight and unified corporate culture by not deviating from management theory that promotes equality and shared decision-making. â€Å"Leaders who are ethical demonstrate a level of integrity that is important for stimulating a sense of leader trustworthiness† (Resick et al. 2006, p.348). Grieves (2010) iterates that change must be a negotiated order in order to gain employee commitment and loyalty. The conception of social justice and equality, as two components acting as the foundation of trust, are reinforced by establishing expectations for managerial behaviour under visionary or transformational