Major Teoh’s Blog

December 14, 2005

Code of Conduct Policy (standard)

Filed under: Code of Conduct,Sample Letters — Major (Rtd) Teoh @ 9:53 pm

HR-Admin Code of Conduct 


Code of Conduct Policy (standard) 

The _________________ (name of company) prides itself on the high standards of excellence embodied by our operating principles. We expect our employees to personify these ideals in their dealing with persons both inside and outside the company. The following code of conduct is intended to provide guidelines for the professional, ethical, legal, and socially responsible behavior we expect of our employees. It is impossible for this code to cover every situation that may arise. When you have a question, ask your Supervisor or your Manager. In circumstances where you are unable to consult with an appropriate person in the company, use your common sense and good judgment.

I. Professional Integrity

Consistent with our operating principles, employees should strive to conduct all business dealings and relationships with integrity, honesty, and respect for others. Employees should loyally and faithfully serve our principles and always deal fairly and honestly with customers and others with whom we do business. No employee should knowingly permit any transaction to occur through his or her offices that is not fair to our principals and customers alike. Relationships with customers, manufacturers, suppliers, competitors, and employees are to be based on fair dealing, on fair competition in quality, price, and service, and on compliance with applicable laws and regulations.

II. Accurate and Complete Accounting

A. Employees should use the approved company’s funds and other property solely for the benefit of the company. All disbursements must be lawful and consistent with instructions and approval provided by the company. Transactions concerning the account, including the purchase and distribution of premiums, should be clearly authorized and properly and promptly recorded.

B. No unrecorded fund, reserve, asset, or special account shall be set up or maintained for any purpose. No false or fictitious entries shall be made in books, records, accounts, or in company communications for any reason. No payment or transfer of funds or assets (such as tangible and intangible premiums) shall be made for any purpose other than that described by the supporting documents, and specifically as authorized by the company or clearly within the discretion granted to the company by the Management.

C. Employees are responsible for the accurate and timely recordkeeping for all company assets, liabilities, revenues, and expenses. Compliance with accepted accounting rules and controls is required. All books, records, suppoprting vouchers and documents must accurately and completely describe the transactions they represent.

III. Bribes and Kickbacks

A. The company does not permit or condone bribes, kickbacks, or any other illegal, secret, or improper payments, transfers, or receipts. This prohibition applies both to the giving and the receiving of payments or gifts above the value of RM ____________ (state amount). 

B. All payments and transfers of premium and other items of value to employees of other business entities or to such entities themselves shall be made openly and must be disclosed and authorized in advance by the principal, the customer, and the company.

C. No employee shall offer, give, or transfer any money or anything else of value for the personal benefit of any employee or agent of another business entity for the purpose of:

1. Obtaining or retaining any business that the business entity itself would not otherwise provide

2. Receiving any kind of favored treatment that the business entity itself would not otherwise provide

3. Inducing or assisting such employee or agent to violate any duty to his employer or to violate any law.

D. No employee shall assist in the misuse of company funds, including, without limitation, the misappropriation of such funds for the personal benefit of employees of the company, or customers.

E. No outside agent of any kind shall be used to circumvent the prohibition against bribes, kickbacks, and other illegal, secret, or improper payments. Fees, commissions, and expenses paid to outside agents must be based upon proper billings, accurate recordkeeping, and reasonable standards for services rendered.

IV. Gifts and Entertainment

A. Except in connection with and specifically pursuant to programs officially authorized by the company, employees may not accept, directly or indirectly, any money, objects of value, or premiums from any person or company that has or is doing or seeking business with the company. All employees must disclose authorized transactions of this nature to the the company. Providing excessive gifts or entertainment to others who may represent potential business is prohibited.

B. Employees may accept only business-related meals, entertainment, gifts, or favors when authorized by management and when the value involved in not significant and clearly will not create an obligation to the donor.

C. Any payments or transactions must be accurately recorded in the company’s books and records and must be consistent with applicable law and accepted practice in the community.

V. Conflicts of Interest

A. No employee should use his or her position with the company or information acquired during employment in a manner that may create a conflict, or the appearance of a conflict, between the employee’s personal interests and those of the company.

B. All activities conducted as an employee of the company should always place the lawful and legitimate interests of the company over personal gain.

C. Absent written authorization by the company, no employee shall be affiliated with any buyer, purchasing agent, or provider of goods or services to the company. Such affiliation generally is inconsistent with the employee’s capacity to deal equitably with all buyers, to fairly and honestly service principals, and to discharge his or her responsibility to the company.

D. If an employee has any reason to believe there may be a conflict of interest, he or she should immediately disclose the matter to an immediate supervisor or his manager.

VI. Diverting Diverting is defined as “a process in which a product is sold by a manufacturer to a specific customer in a designated market, who subsequently transfers product ownership, distribution and retail control to a different customer and/or marketing area.” It is a process that many principals prohibit either by policy or in their contracts with the company. Employees shall not knowingly assist or otherwise be involved with the diverting of any products.

VII. Confidentiality

A. Except as properly authorized by the company, it is the responsibility of all employees to maintain the confidentiality of:

1. Proprietary information of the company

2. Information entrusted to the company by principals or customers that is otherwise not readily available to the public.

B. Employees should refrain from discussing confidential company business with outsiders and with anyone else who does not have a legitimate need to know the information. Employees should refer outside inquiries regarding the company to the persons in the company authorized to respond to the particular inquiry.

VIII. Political and Charitable Contributions Although employees are encouraged to be socially responsible and politically active, employees may not contribute the company’s or any principal’s funds or assets to any political candidates, party, charity, or similar organizations, unless such contribution is expressly permitted by law and has been preapproved by the appropriate, authorized representative of both the company.

IX. Administration of Code

 A. All employees who suspect violations of the letter or spirit of this code have an obligation to report their concerns to the company or to any member of the board of directors. . Matters of concern include pressure exerted by manufacturers, customers, company personnel, or others to utilize accounts in an unauthorized manner or to take or enable other actions inconsistent with authorized company procedures and policies or this code. Employees may also relate their suspicions or specific incidents to any member of the board of directors.

B. All allegations of improper or illegal behavior will be investigated promptly and thoroughly. The investigation shall remain as confidential as practicable and those conducting the investigation shall respect the privacy of all persons involved.

C. No adverse action shall be taken or permitted against anyone for communicating legitimate concerns to the appropriate persons. While an investigation will be facilitated if the employee identifies himself or herself, the company will accept and investigate matters submitted anonymously.

D. This code is subject to amendment and may be reviewed and updated periodically. All employees must certify annually their intent to comply with the guidelines herein.

Receipt and Acknowledgment of Code of Conduct

Your signature below indicates that you have read, understand, and agree to abide by the company’s code of conduct.

Employee’s Name (please print) ____________________________Branch ___________________ Employee’s Signature __________________________________Date _______________________ Supervisor’s Signature__________________________________ Date _______________________  


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