Colossal Motor Company: Business Ethics and Conduct in Mexico

Table of Contents


Business ethics and conduct is professional ethics involving business ethical principles and molar that should be applied by both individuals and organizations. Business ethics examines individual molar conduct and ethical problems that arise in a business setup. Business ethics and code of conduct is a normative discipline with corporate ethics. Every business operates in a social and natural environment thus it should have its ethics and conducts because it is accountable for its immediate environment. Corporate social responsibility (CRS) is part of business ethics and a code of conduct involving ethical rights, duties, and responsibilities between an organization and society. The purpose of business ethics and conduct is to determine the core reason for operating the business.

Main body

Business ethics and code of conduct are bound by the country’s legal laws. Business should conduct its ethics and code holding on its surrounding society basic rules. Every business should adhere to social rules and regulations either bound by legal laws or traditional custom ethics. All businesses are subjected to the country’s legal responsibilities and it is required to follow all legal rules and regulations. This affects the organization’s planning management process since it has to set its internal ethics and code of conduct within the limit. There are external factors that every business should adhere to. For every business to portal a positive corporate image, it must follow and adhere to requirements about social responsibilities. It should provide valuable services and products to society together with a charitable donation. A business should plan its guidelines and policies to guide employees and protect the company. This is accomplished by establishing business ethics and a code of conduct to govern the whole organization. Ethics help the organization to create policies for ethical practices within the organization and on how to handle its customers (Collins, 2009).

Mexico has federal law for all commercial organizations regarding legal treatment and tax payment. Federal law regulates Employment Act which states that every employee should be trained to improve their skills. In Mexican highest percentage of employees is young youth, they encourage the training of young to adapt to technological changes and new techniques for management that older employees can not adjust easily. Colossal Motor Company adhering to Mexico’s legal and ethics laws will build a strong workforce that will be efficient in production. Mexico has a set of standards ethics and code of conduct for every business thus, Colossal Motor Company conveying consistent ethics and code of conduct will build a good corporate image. The company will grow well financially if it chooses to have a consistent ethical and good code of conduct within the organization.

Mexico Federal Labor law has mandatory employee benefits to be followed by all employers such benefits include Christmas bonus, employees to be paid during holidays, overtime payment, healthy and safety to be provided to every employee. Colossal Motor Company adhering to this legal ethics will produce motivated employees who are disciplined and will be able to control their code of conduct. In Mexico employee discrimination is illegal, federal Labor Law expects every employer to set internal ethics and codes of conduct that are within external reach (Mesick & Tenbrunsel, 1996).


In conclusion, following and adhering to Mexico’s legal and ethical laws will result in overwhelming profit to Colossal Motor Company. It will produce motivated employees, with low rate turnover and a positive corporate image. This will gladly attract more customers to the company.

Reference list

Collins, D. (2009). Essential of business ethics: Creating an organization of high. Canada: John Wiley & sons.

Mesick, D. & Tenbrunsel, A. (1996). Codes of conduct: Behavioral research into business ethics. United State of America: Russell Sage Foundation.

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