CODE OF CONDUCT AS A TOOL IN THE EXERCISE OF MANAGEMENT PREROGATIVEAtty Elvin
Code of Conduct pertains to principles, values, standards, or rules of behavior that guide the decisions, procedures and systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all constituents affected by its operations.
A well-established Code of Conduct/Discipline provides confidence to the exercise of management prerogative to enforce the rules and regulations. The code is well-recognized by the court as basis of disciplinary action taken by employer.
In one case, the Supreme Court said that the complainant loses sight of the fact that the right of an employer to regulate all aspects of employment is well settled.
This right, aptly called management prerogative, gives employers the freedom to regulate, according to their discretion and best judgment, all aspects of employment, including work assignment, working methods, processes to be followed, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers.
Further the Court ruled that in general, management has the prerogative to discipline its employees and to impose appropriate penalties on erring workers pursuant to company rules and regulations. Thus, the court found complainant’s protestation unfounded.
For, based on the record, the employer imposed the penalty pursuant to the Company Code of Discipline which the labor agencies find to be fair and in accordance with law.
(See Discussion in the book How to Design and Formulate Company Code of Discipline, pp. 7-8)