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 …show more content…
Caterpillar uses the fourth value of “Commitment: The Power of Responsibility” (Caterpillar, 2005 p. 23) to outline its commitment “with whom we work, live and serve” (Caterpillar, 2005 p. 23). An example of Caterpillars commitment to those they live with is exemplified in how they conducted themselves after locating facilities in the Brazilian town of Piracicaba. Caterpillar partnered with the local government to provide guidance and expertise to develop the city. It did have benefits to Caterpillar, but it also showed the integrity to partner with others for mutual benefit to society. Author, Margaret Griesse (2007) illustrated Caterpillar’s leadership and commitment to an underdeveloped community in which they headquarter the Brazilian operations and how they aided the community to the benefit of all stakeholders. “The community-based effort led by Caterpillar to elaborate and carry out a sustainable development plan for the city is notable example how a firm can encourage civil participation and offer strategic planning know-how to civil-society organizations” (Greisse, 2007 p. 39).
Caterpillar recognized early an importance of sharing and communicating its ethics across its global company. It has, over the years,