Essay about Review of Caterpillars Code of Ethics

1012 Words Jul 30th, 2010 5 Pages
Review of Caterpillars’ Code of Ethics
Caterpillar Incorporated (Caterpillar) is the world’s top in manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. In 2008, Caterpillar reported sales revenue of $51.3 billion dollars from domestic and worldwide operations (Caterpillar, 2008). As reported in Caterpillar’s 2008 Annual Report, Caterpillar is a worldwide company with 67% of their sales from outside of the United States (Caterpillar, 2008). With a global reach and influence, Caterpillar has recognized the need to develop and implement a Code of Conduct to guide its management and employees in their daily practices to make Caterpillar the efficient and profitable global leader
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In the post Enron era, a company must have honesty before any customers, suppliers, investors or general public has faith in their credibility as a company. The next pillar of Caterpillars Code of Conduct is Excellence. The excellence credo is further highlighted in the 2005 Code of Conduct as “The Power of Quality” (Caterpillar, 2005 p. 11). Caterpillar is trying to impart to the stakeholders and their employees that they strive for excellence in everything they do. Caterpillar has built a line of products and has a long standing tradition of high quality products that are in demand around the world. To build the quality they do, they instill the concept of excellence in their employees, suppliers and dealers. An important part of any successful business is the ability to develop and nurture a culture of teamwork. The third principal Caterpillar notates in its Code of Conduct is teamwork, in which they stress that they “know by working together, we can produce better results than any of us can achieve alone” (Caterpillar, 2005 p. 17). Caterpillar also uses the principal of teamwork to emphasis that the global and cultural diversity of their company is a competitive strength. In an enlightening approach to teamwork, Avshalon Adam and Dalia Rachman-Moore (2004), discuss how companies implement their ethical codes. They have

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