The Intel logo is ubiquitous on computers and laptops—lowercase letters surrounded by a quickly drawn oval. But few people really understand the business that Intel is in. Founded in 1968, the company has grown steadily from its initial startup of producing semiconductors. Today, the $70 billion firm has over 100,000 employees and offices throughout the world. The company has diversified since its inception and currently offers all manner of processors, motherboards, wireless connectivity products, software, and business-consulting services.(1) Being such a large company, with tens of thousands of employees, means that the organization must stay focused on ethical business practices.

In March 2020, the organization released its updated code of conduct. This page document explains to employees why ethics are important, the values of the company, how to be a responsible corporate citizen, laws affecting their operations, and how to respectfully treat coworkers; it even includes a glossary of the terms mentioned throughout the code. According to the document, "The Code of Conduct sets the standard for how we work together to develop and deliver product, how we protect the value of Intel and its subsidiaries, and how we work with customers, suppliers, distributors, and others." In short, it provides the guidelines for all an employee's dealings with coworkers, as well as stakeholders outside the company. Every employee is expected to read the code of conduct and understand its meaning.

In addition, the document lays out the five ethical principles to which Intel holds firmly. They are as follows:

    Conduct business with honesty and integrity. Conduct business with uncompromising integrity and professionalism, demonstrating honesty and high ethical standards in all business dealings and treating customers, suppliers, distributors, and others with fairness, honesty, and respect.
    Follow the letter and spirit of the law. Ensure that business decisions comply with all applicable laws and regulations of the many countries in which Intel does business.
    Treat each other fairly. Work as a team with respect and trust for each other.
    Act in the best interests of Intel and avoid conflicts of interest. Avoid situations where our personal or family interests interfere—or even appear to interfere—with our ability to make sound business decisions in the best interest of Intel.
    Protect the company's assets and confidential information. Protect the value of Intel's assets, including physical assets, intellectual property, confidential information, Intel brands, and its name and reputation as well as the confidentiality of information of our customers, suppliers, and employees.

In the event an employee of Intel feels that one of these values or any of the company's ethical standards have been violated, steps for reporting this is outlined in the code of conduct. The organization has an open-door policy, which means that an employee should feel comfortable approaching any manager about an issue. Obviously, employees are encouraged to first contact their direct manager, but they may also discuss the matter with anyone all the way up to the president of the company. Of course, if the matter is one that an employee does not wish to discuss with management, that employee may certainly talk to someone in the HR department, legal offices, or corporate security or any other support staff member.

What happens if an employee is in violation of the code of conduct? First, an investigation is conducted internally to determine the nature of the violation. If the investigation indicates that no violation occurred, then the matter is dropped. However, if there is an infringement of the code, then the company will take action. According to the code, if that happens, the result could be "discipline, up to and including termination of employment."

However, the code of conduct is not designed to catch people doing something wrong. Rather, it is a set of guidelines that embodies the ethics Intel would like all to share. As the code states, "Our future growth depends on each of us understanding these values and principles and continuously demonstrating the uncompromising integrity that is the foundation of our company."
Questions

1. For a company of Intel's size and type of business, how important is a code of conduct? Explain.
2. Consider a company you are currently working for or have worked for in the past. Did that organization have a code of ethics or a code of conduct? Discuss.
3. What is the purpose of a code of ethics? Shouldn't employees of a firm expect everyone—other employees and managers—to do the right thing every time?
4. Taking each of Intel's five ethical principles described in this case, evaluate each one. Do you agree with that principle? Is it easy to understand?
5. How should a company enforce its code of ethics?
6. If someone violates the code of ethics but also breaks the law in doing so (such as stealing something of value), should that person also face legal action, not just disciplinary action