More importantly, because the system needs to be perceived as fair, employees opinions must be taken into account. We are not putting this system into place to be punitive, but rather to protect the interests of all of the employees.
It is believed that the system of inquiry will have a strongly positive effect on the organization. Verizon has long had some form of ethical code, but with the new code coming into effect in 2008 and the introduction of a system of inquiry, the firm is demonstrating strong ethical values. These are the values shared by most of the employees already. What the code and system do within the company is to formalize the values that most employees already have. It improves the perception of fairness and presents a unified view of ethical issues throughout the firm.
This also will have strong impacts outside the organization. In an era when corporate scandals are commonplace, having such a strong program of building and enforcing a code of ethics will have a positive impact on Verizons reputation. It will also strengthen the stock markets view of Verizons governance, which can help sustain shareholder wealth.
Verizon has instituted this year a new code of conduct for its employees.
The practical application of this code will require a formalized system of inquiry to identify and investigate potential ethical problems.
The system begins with information, since communication is essential to understanding and trust in the system. When a situation is identified, the investigation process will be swift and transparent. To help encourage the identification of ethical issues, a whistleblower protection system will be used. Accused will have rights, and any serious matters will be referred to the criminal justice system. Ultimately, the code of conduct and the system of inquiry will strengthen Verizon, both internally and in terms of their external reputation.
No author & Seidenberg, Ivan. (2008). Your Code of Conduct. Verizon. Retrieved October 25, 2008 from https://www22.verizon.com/about/careers/pdfs/CodeOfConduct.pdf
Liptak, Adam. (2007). Verizon Reverses Itself on Abortion Messages. New York Times. Retrieved October 25, 2008 at http://www.nytimes.com/2007/09/27/business/27cnd-verizon.html?adxnnl=1&adxnnlx=1224961253-V6iLKJ6NbEBQ/tn2vsTygQ
Dallas, Lynne. (2003). A Preliminary Inquiry into the Responsibility of Corporations and their Directors and Officers for Corporate Climate: The Psychology of Enrons Demise. Rutgers Law Journal. Retrieved October 25, 2008 at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=350341
Liptak, Adam. (2007). Verizon Reverses Itself on Abortion Messages. New York Times..