Companies need to act responsibly because unethical and irresponsible behavior
Could result in legal sanctions
Could result in consumer boycotts
Could lower employee morale
Could cost sales because of bad publicity.
A major component in a company's strategy for ethical and socially responsible behavior is a code of conduct. Codes of conduct involve four dimensions Setting a global policy that must be complied with wherever the company operates Communicating the code to employees, suppliers, and subcontractors, Ensuring that policies are carried out Reporting results to external stakeholders