Reference no: EM133775706

Discussion

Boards of directors are described as organizational structures that formulate broad policies for the facility, set the necessary strategies, make decisions related to the company's assets, evaluate the company's performance, and appoint the company's CEO, in addition to carrying out control tasks and discovering risks (Kanakriyah, 2021). Steve Jobs' departure from Apple in 1985 was caused by some factors. There are different tones of vision, strategy, and inefficient communication. An example is that Board of directors trusted strategy of Sculley who Steve Jobs hired. Steve Jobs clashed with Sculley after two new products - the Lisa and the Macintosh - failed to meet sales expectations. As a result, Jobs was moved away from the Macintosh product and was furious about the change, taking his case straight to Apple's board of directors. Finally, Steve Jobs departure Apple in 1985 (Schlossberg, n.d.).

A code of ethics is a set of rules outlining moral precepts and standards that people and organizations should adhere to (Deutsch, 2023). More recently, Stevens (1996) defines ethical codes as "written documents which presume to state the major philosophical principles of an organization." Kaptein and Wempe (1998) state that "a code is a suitable instrument to increase the moral resistance of an organization" (Babri, Davidson, and Helin, 2021).

Companies must create and implement a code of ethics for several reasons. It provides a framework for ethical behavior, outlines the expectations for workers, and fosters an environment of honesty and responsibility. It guides ethical decision-making by outlining the organization's values and principles, enabling employees to make informed decisions aligned with ethical standards. Moreover, it helps to maintain the organization's reputation and credibility (Deutsch, 2023).