Developing a Code of Conduct and Business Ethics Policy for ADV Network Sdn. Bhd.

Poo, Fong Teng (2026) Developing a Code of Conduct and Business Ethics Policy for ADV Network Sdn. Bhd. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study examines the development of a Code of Conduct and Business Ethics Policy for ADV Network Sdn. Bhd., a Malaysian SMEs in the structured cabling and CCTV industry. In an increasingly competitive and transparent business environment, organisations are evaluated not on financial performance but also on their ethical standards and governance practices. However, many SMEs continue to rely on informal systems. In the case of ADV Network, the absence of a formal policy has led to inconsistent decision-making, weak accountability, and potential operational and reputational risks. The study analyses the organisation’s current practices, which are characterised by informal communication, decentralised operations, and reliance on experiential learning. These practices result in inconsistencies across branches and a lack of standardised procedures. This underscores the need for a structured ethical framework to guide employee behaviour and support effective governance. To inform the policy development, the study draws on key governance theories, including Agency Theory, Stakeholder Theory, Stewardship Theory, Legitimacy Theory, and Institutional Theory. It also benchmarks the organisation against recognised frameworks such as MCCG 2021, Section 17A of the MACC Act, and ISO 37001. A triangulation approach is adopted, combining questionnaires, interviews, and document review, with thematic analysis used to identify governance gaps. Based on the findings, a comprehensive Code of Conduct and Business Ethics Policy is proposed to enhance ethical standards, strengthen internal controls, and improve consistency across operations. The study concludes that a formal policy is essential for improving organisational effectiveness, building stakeholder trust, and ensuring long-term sustainability.