MBA 6301-10H-20 Unit VII Assignment 1

Running head: MBA 6301

MBA 6301-10H-20 Unit VII Assignment

By: Nguyen Dinh Quoc Viet

Student ID: 228598

Columbia Southern University

May 18, 2014

CODE OF ETHICS OUTLINE FOR BIDV ORGANIZATION

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Summary

BIDV organization is constrained in conducting legal and ethical business activities throughout

Vietnam. BIDV organization is in need of update current code of ethics because of the growth of

the company and the changing workforce. BIDV is constantly improving our products, services,

and operations thus stressing the integrity of both corporate and personal role. Besides

complying with laws and regulations set by the authority, we also strive to create reputable

business judgment together with highest ethical standards of respect, honesty, fairness, and trust

to our customers. There is no chance that BIDV will sacrifice the set of ethical principles of the

company over short term advantage. The company’s set standards root from employees at

highest level of personal integrity and encourage it in others.

BIDV’s employees are expected to be honest and must never let personal interest come in

between customers and company’s interest. They are demanded not to commit any unethical

behaviors that would bring dishonor upon themselves or the organization. Under no

circumstances should BIDV’s employees accept any form of bribery, kickback or remuneration.

Any staff must prevent the occurrence of representing BIDV under any form of transaction with

other individuals or parties outside the company’s affiliates. In addition, management level such

as directors must by all means avoid using the contacts available from the company to carry out

personal business activities at the expense of the company (Stanwick & Stanwick, 2009).

Moreover, they are required to take necessary steps to guarantee the company’s information

safety.

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Guiding principles:

Whenever it comes to company’s inside information, employees must follow with several

guideline principles. First of all, if BIDV hasn’t yet released the material information to public,

employees must never disclose the confidential information, unless to a special member within

the company who was assigned to require that information. Furthermore, it is obligatory for

employees not to involve in any act of purchasing the company’s securities of which they have

information to, only after that company has publicly disclosed those information regarding the

securities and the public has had enough time to take in the material information. Additionally,

regarding the company’s securities, employee shall not buy or sell the securities to a different

organization.

According to the Securities Exchange Act, employees and directors of BIDV shouldn’t wrongly

interpret their qualifications. In other words, the involved individual must acknowledge that the

consequences of misusing company’s internal information linking to securities trading will be

resulted in penalties and civil liabilities.

Purpose of the code:

As a part of an overall ethics policy, BIDV’s code of ethics reinforces the moral principles and

commitments of the company by spelling out such purposes. First of all, this Code ensures that

unethical acts in the company and any dishonest behavior corresponding relating to business

activities within BIDV shall not be promoted at all. For that reason, the purpose of the Code is to

promote honest and ethical practices in terms of personal and professional relationships.

Secondly, set in the company’s ethical environment, this Code promotes adherence and

accountability of the set of guidelines and principles. Next, the Code promotes compliance to

legal laws and regulations set by the authority regarding the business activities that the company

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carries out. Last but not least, this code promotes fairness, honesty and accuracy in disclosure of

the company’s reports.

Core values:

BIDV organization aims to go far beyond doing the right thing by possessing core values:

Integrity, Confidentiality, Loyalty, Legality. Not only does our organization commit strongly

with legal issues and cultural ethics, but we also protect the most valuable assets as well as

ensuring the success of our business throughout Vietnam and its region (McKinney, 2010).

Each and every employee of BIDV must resort to gathering report information from clients in an

accurate and honest manner according to the requirements of reporting. On top of that, they must

refrain from the acts of gathering intelligence information from competitors through the use of

illegitimate means and, certainly, they must at all times avoid exaggerating or disparaging when

comparing their services to others.

Training and education:

BIDV will provide training for the code of ethics to all employees because it will govern the

company with an aim of guaranteeing compliance to the relevant standards and guidelines before

they actually sign the code of ethics. Adequate training and education will enable a clear

understanding of the code as the disciplinary action that an individual is entitled to in case of

violation to the rules and guidelines of the code.

Definitions

For proper understanding of the BIDV’s code of ethics, we provide you with term definition.

These are rules set aside in the organization with an aim of governing and regulating behaviors

of the people covered; in this case, directors, employees and officers. Ethics is derived from

“Ethika” - a Greek word referring to human conduct or human morals. A distinction should

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however be driven between ethics and codes of conduct as well as codes of regulation.

Regulations, guidelines and procedures how the way employees in this organization carry out

their activity is provided by this code of conduct having employee rights and remedies of the

guidelines violations provided (Kaptein, 2011).

The purpose of a code of ethics in a business organization is the setting of the general principles

related an organizations belief on matters regarding the company’s privacy, quality, mission, or

the entire company’s environment. A company’s code of ethics delineates proper procedures

which assist in the determination of whether or not the codes of ethics have been violated. In

addition to that, the code of ethics imposes remedies if violation of the codes has actually

occurred. However, the effectiveness of the imposed remedies will depend on the extent that a

company’s management is willing to support the code of ethics with relevant rewards and

sanctions. Violating a company’s code of ethics results in remedies such as trade based restraint

on moral principles; however, this only applies to private organizations. An employee’s code of

conduct is given rise by or linked to the company’s code of ethics.

Persons covered:

This code covers from employer to director and officer in the BIDV organization or people with

similar functions within the organization. All parties are expected to conduct honest and ethical

behaviors in this code of ethics. Since this code is a condition to official employment so personal

integrity and fulfillment are required. All of the above parties have a duty of to report any minor

or major violations of the codes to the Audit committee/ Board of Directors without fear for

reappraisal or punishment due to that action.

Implementation/ Communication

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It is imperative that meeting sessions be conducted for employees after the acknowledgement,

and before both parties actually sign in this code of ethics. Further training will be provided in

order to ensure that information involved in the code of ethics such as the guidelines and

principles are clearly communicated to the parties covered. Thus, covered parties can have the

opportunity to ask questions concerning areas where a certain principle or guideline wasn’t

clearly understood (Chua & Rahman, 2011).

Enforcement/ Reporting

In the case of code violation, it is obligatory that the parties covered in this code of ethics report

the other party which is covered by the same code of ethics. Person who is reported to have

violated the code of ethics will be investigated by the Audit team and will meet corresponding

consequences depending on the violation rate if found guilty. No person will be punished for

reporting a case of violation. In case the reported individual discriminates against the person

who reported him, the Audit committee will decide to dismiss the discriminating individual.

People who violate the code shall be inflicted by some disciplinary actions such as demotion,

reassignment, and termination or even court case infliction.

Mission statement:

BIDV’s code of ethics mission statement is to guarantee that a fair and legal business system is

created within the company’s premise. This can be exercised by ensuring that dignity is

maintained among the covered parties when the company’s services are being presented.

Moreover, whenever a business transaction is being undertaken, this code of ethics will help

ensure that honesty is maintained among the covered parties. Therefore, false, inaccurate and

confusing information being exchanged can be avoided during transactions.

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Additionally, in relation to the interpretation of the code of ethics, Union’s authority role is

recognized at all times under this code of ethics. Also, this code contributes to the production of

high quality business products that are somehow similar to the ones displayed in the samples by

BIDV organization. The last mission statement of this code is to offer the company standards

that help enhance the profitability of the company as well as sales.

References

Chua, F., & Rahman, A. (2011). Institutional pressures and ethical reckoning by business

corporations. Journal of Business Ethics, 98(2), 307-329.

Kaptein, M. (2011). Toward effective codes: Testing the relationship with unethical behavior.

Journal of Business Ethics, 99(2), 233-251.

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McKinney, J., Emerson, T., & Neubert, M. (2010). The effects of ethical codes on ethical

perceptions of actions toward stakeholders. Journal of Business Ethics, 97(4), 505-516

Stanwick, P. A., & Stanwick, S. D. (2009).Understanding business ethics. Upper Saddle River,

NJ:

Prentice Hall.