Code of ethics refers to documented policies, business norms, personal values and company rules used by employees and

companies. Companies are committed to achieving the highest possible ethical standards and personal ethics for themselves and its personnel in the performance of their duties. Honda and the General Motors are competitors in the auto industry. Their code of ethics covers similar aspects ranging from personal integrity issues, fair dealing and market competition to environmental competition. General Motors have a long history in the auto industry. To the company, integrity is fundamental to gaining a market share in the industry. Therefore, the company advocates for all its stakeholders to comply with the company policies and all legal requirements as described in its ethical code of conduct. The companys policy has six major sections. Our Customers describes the importance of the companys customers, the rules that govern customer relations and methods of dealing with the customers fairly and competitively. Our Company has rules pertaining to compliance with internal and regulatory policies, conflicts of interests including corporate opportunities, the protection of the companys tangible and intangible assets, elements of financial reporting and enforcement. Our Employees describes personal integrity, confidentiality, personal conduct and reporting unethical behavior. Accountability describes employee responsibility. The last major segment, Our Community refers to policies that help in serving the community. Honda has a different format for its policy. It has eleven sections: Compliance, Traffic Safety, Environmental Protection, Contribution to Society, Company Assets, Management of Information, Safety and Health, Respect for Human Rights, Business Transactions, Relationships with Politics and Administration and Communication. These sections describe similar aspects as those in the General Motors ethical code except that they are in different categories.

The GM code of ethics is better than the Hondas Code. The categories and format of its document makes it possible for its code to cover a high number of issues relating to each stakeholder. The companys code covers more area that deal with consequences in case of a breach, warning signs of a possible breach, rules to follow in case of an amendment of the sections and practical examples to help its users. It is comprehensive. On the other hand, Hondas policy is lacking important elements. It summarizes some important ethical components, but leaves out important issues such as reporting unethical behavior, accountability, the element of future amendments, warning signs, conflict management and any complaints regarding to internal controls. These elements are important and significant to the company. Both companies conform to the professional IEEE ethical codes. The both describe matters of integrity, corruption, financial reporting, company assets and public or society safety and welfare. This indicates that these international companies work towards upholding their code of ethics and reputation in the auto industry. These companies apply all categories of the ethical theories. Honda applies duty ethics predominantly in its operations. It exercises the duty of care to its management, employees, community and customers. GM applies rights ethics because they emphasize on each individuals rights and opinion. A code of ethics is important for companies and their employees. Every company should have a documented code of ethics to minimize conflicts due to ethical breach. Both the GM and Honda companies have codes of ethics, which are complied with by their stakeholders.