Code Of Conduct For Australian Company: Addressing Discrimination, Exploitation, Corruption, Dishonesty, Fraudulent Behaviour And Whistleblower Protections

You are required to read a series of news articles and other information about an Australian company. The details of the Australian company, the news articles and other information will be supplied to you in due course.
You must then draft a Code of Conduct for the Australian company that specifically addresses:
A. Discrimination
B. Exploitation
C. Corruption
D. Dishonest and Fraudulent Behaviour
E. Whistleblower Protections
F. Enforcement

A. Discrimination

This report is a written review of Code of Conduct of Metcash- an Australian supermarket chain. Employee code of conduct company policy framework is prepared to be tailored to firm’s needs as well as should be considered a starting point step for developing employment policies. Major purpose of the report is to review the Code of Conduct policy and to support the review, data and evidences have been collected from company websites, newsletter, blogs and few journal articles published on code of conduct and employment policies. Metcash is Australia’s leading wholesale distribution as well as marketing company with the sales of over $14 billion as per the financial year 2018. The business of Metcash strives to “Best Store in Town by providing merchandising, operational as well as marketing support across several products such as food, liquor as well as hardware pillars. Organization has a large employee base due its extending services across many cities; thereby, code of conduct policies are a significant concern to the business. Considering this Code of Conduct of the company, this report pays attention to some significant areas of Code of Conduct such as discrimination, exploitation, corruption, dishonest and Fraudulent Behaviour.

A newsletter published on behalf of Metcash and stated the fact that small businesses like Metcash often play a great role in community, providing career opportunity for residents as well as supporting local causes, school as well as small businesses. Code of Conduct at Metcash developed to be overarching commitment that people make, as individuals and organization, to behave in a certain way that makes Metcash Australia’s favourite place to work and preserves its reputation. Code of Conduct builds behaviour that all Metcash team members are expected and supposed to comply with. Where a team member does not comply with one or more elements of the Code, the consequence could be disciplinary action which is up to the termination of the employment. Following are some of the areas in Code of Conduct in Metcash are built upon a fair employment policies.

According to Chen, Larsson and Mark-Herbert (2014), all team members should experience a sense of belonging to feel comfortable by bringing their whole selves to work as well as feel respected and valued. Team members in the organization are expected to engage in conduct that promotes diversity as well as belonging at Metcash which is further helping to protect corporate reputation, commercial relationship as well as developing the in the community. Thus, to avoid discrimination in the workplace, the organization promotes “belonging and diversity” as policy of Code. Jedlickova (2015) mentioned that team members at Metcash are expected to treat others with dignity, courtesy as well as respect. 

• Employees are not supposed to be involved in conduct that is inappropriate, unreasonable or could pose threat to safety, health of another person
• Employees are not supposed to be involved in conduct that could bring or threaten to bring Metcash into serious dispute
• Employees are not supposed to be engaged in unlawful conduct, with the including any conduct or behaviour that could lead to sexual harassment, unlawful discrimination
• Employees are supposed to comply with all policies, procedure  as well as direction from their leader about their behaviour including but not limited to Metcash’s EEO, discrimination,harassment and bullying policy

Exploitation is another significant concern every business needs to consider when running a firm along with a large employee base. To avoid exploitation in the workplace, Metcash promotes the policy of “Conflicts of Interest” under its Code. Corones (2015) mentioned that a conflict of interest could arise or exist where a team member has an interest or activity that might create an actual or potential conflict with the interest of the company. Author of this article has also mentioned the fact that a team member could use their position or engagement with the company to gain an undisclosed benefit for themselves or someone else (mars-metcdn-com, 2018). On the other side Lund-Thomsen and Lindgreen (2014) mentioned that instance of exploitation could occur when or during the shift hours, a team member does not devote their full time as well as attention to their tasks but rather they undertake activities that could lead to personal gain or benefits. Organization has developed Code of Conduct to avoid exploitation in the workplace and employees are supposed to comply to the following

• Employees are supposed to avoid actual or potential conflicts, unless they have first disclosed the conflict and resolved it to the satisfaction of their leader
• No individual in the team is supposed to make or influence any sort of decision in the course of their employment with Metcash for personal and other improper reasons like benefitting a partner, friend or relative

B. Exploitation

According to Carruthers (2013), when a business enters a wide market with a large external and internal setting, corruption is likely arise from both internal and external environment. In the news article of Metcash, it was found that team members are expected at all times to be familiar with as well as at all times comply with all laws concerning their employment or engagement with the company. According to Code of Conduct, team members must not involve in any unethical or improper payment practice, which is either to derive business or for personal interests or gains

• Employees are not supposed to engage in commercial bribery
• Employees must not have party to the bribery of public officials
• No individual in the workplace is not supposed to develop so called slush funds to facilitate bribery or other improper practices

According to Beaton-Wells and Paul-Taylor (2018) team members are not supposed to be criticized for the loss of business as the consequence of resisting a bribe or inducement from any third party and under such case, all disciplinary action should be taken with the inclusion of termination.

When running a multinational or large business across different markets fraudulent behaviour and dishonesty in a business is certain to occur. Chen, Larsson and Mark-Herbert (2014) mentioned that according to the Code of Conduct of Metcash, team members are not supposed to be criticized for the loss of business as the consequence of interfering the bribery through a third party. On the other side, Carruthers (2013) mentioned that team members who tend to believe that they are aware of any fraud, corruption or irregular activities have the duty to inform their leader or manager about the same. Hence, the company is supposed to investigate with the regulation or taking help from the regulatory authority. According to Code of Conduct of Metcash members are expected to act always within their level of authority with the inclusion of authority. Team members are not supposed to do the following:

• Employees are not supposed to make any disbursement of organization funds or other organizational property without proper supportive documentation; and this might include ensuring that all appropriate payment authorities are derived simply according to the delegated authorities.
• Under the employment contract of Metcash business, employees are not supposed to make any direct or indirect personal payment to official or team members of any government at any range with the exclusion of payment, which should be later reimbursed by the company
• Employees are not supposed to take any action or authorize any sort of action which could include illegal, unethical or improper payment or provision of service.

In addition to this, Beaton-Wells and Paul-Taylor (2018) mentioned that all disputed claims need to be processed according to Metcash’s Disputed Resolution Policy which could be found on the Metcash policies.

The organization is committed to operate its business with honesty and integrity and to promote compliance with all applicable laws, rules and regulation Board of Directors of Metcash has adopted a Code of Ethics which could reiterate the standards of conduct as well as ethical behaviour that are always expected out of the directors. The organization has developed the following policies to protect the whistle blowers.

Governmental laws are certain to prohibit retaliatory action by public companies against their employees who could take appropriate lawful action if and when they observe wrongdoings on the part of their employer. Moreover, organization’s obligation under the federal law, neither the organization or nor any sort of officials, agents could discharge, demote, suspend or any other manner discriminate against a staff as any of the lawful act done by organizational members

• To provide information to or otherwise guide in investigation by a federal regulatory or lawful agency or any individual with the supervisory.
• To file, testify, participate and assist in proceeding related to alleged violation of any federal fraud or security laws

Enforcement is another significant area in the business that organization must have to consider. Carruthers (2013) mentioned that it is company’s policy to comply with all applicable regulations and rules. Author of this article has also mentioned that It should be company’s personal responsibility of each Associate to adhere to standards as well as restriction imposed by those regulations. So in performing the duties, all organizational members are supposed to comply and take appropriate actions within the areas of responsibility to guide organization to comply with appropriate government laws and regulations.

According to the policies of the Code at Metcash, organization’s management under the supervision of its Board of Directors or a committee, therefore, in the case of auditing, the Audit Committee, which means Metcash’s Board of Directors should take reasonable steps from time to time

• Monitor compliance with Code, with the inclusion of establishment of monitoring the system that are particularly designed to investigate and detect conduct in violation of Code.
• When required, company can impose or enforce appropriate disciplinary measures for the violation of Code

Disciplinary measures for violations of Code could include but are not limited, or written reprimands, warning and probation with or without pay in salary, termination of employment or service and restitution. Moreover, when it comes to enforcement, management of the organization is supposed to periodically report to Board of Directors or the committee; thus, these compliance effort, with the limitation, periodic reporting of alleged violation of Code as well as the actions taken with response to any sort of  violation.

Conclusion 

In conclusion, it can be mentioned that Code of Conduct is one of the significant areas that business should consider when dealing with a large market. It is worth stating that corporate governance practices Metcash’s business activities are directed, overseen as well as monitored to a greater range. However, it is certain that market environment has been dynamic in nature; therefore, the nature of corruption, discrimination or conflict could be different. To avoid such discrepancies or deal with dynamic nature of corporate environment, business or organization as whole should review the policies Code of Conduct and amend the policies according to the needs.

References

Beaton-Wells, C., & Paul-Taylor, J. (2018). A Code of Conduct for Supermarket-Supplier Relations: Has it Worked?. Australian business law review, 46(1), 6-31.

Carruthers, S. (2013). Supermarket code of conduct. Practical Hydroponics and Greenhouses, (138), 3.

Chen, T., Larsson, A., & Mark-Herbert, C. (2014). Implementing a collective code of conduct–CSC9000T in Chinese textile industry. Journal of cleaner production, 74, 35-43.

Corones, S. (2015). Regulating unilateral supermarket misconduct as customer/acquirer of goods and services. Australian Business Law Review, 43(5), 400-419.

Jedlickova, B. (2015). Vertical issues arising from conduct between large supermarkets and small suppliers in the grocery market: law and industry codes of conduct.

Lund-Thomsen, P., & Lindgreen, A. (2014). Corporate social responsibility in global value chains: Where are we now and where are we going?. Journal of Business Ethics, 123(1), 11-22.

mars-metcdn-com. (2018) Metcash Code of Conduct. [online] Mars-metcdn-com.global.ssl.fastly.net. Available at: https://mars-metcdn-com.global.ssl.fastly.net/content/uploads/sites/101/2018/06/05134702/Code-of-Conduct.pdf [Accessed 31 Dec. 2018].