Competitive Intelligence And Business Ethics


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  • The article can be found at : http :// www . scip . org / news / jcim / JCIMv2i1Comai . pdf
  • Competitive Intelligence And Business Ethics

    1. 1. Competitive Intelligence and Business Ethics Based on the article : Global Code of Ethics and Competitive Intelligence Purposes: an Ethical Perspective on Competitors Alessandro Comai. ESADE Business School, University Ramon Llul . SCIP Journal : Journal of competitive Intelligence and Management Ziv Rafalovich – July 2004
    2. 2. Agenda <ul><li>Approaches to CI and ethics </li></ul><ul><li>Codes of ethics </li></ul><ul><li>4 Variables to evaluate ethics in CI. </li></ul><ul><li>Model which combines Information collection and ethics. </li></ul>
    3. 3. Goal <ul><li>Framework to help organizations decide which information collection techniques are ethically acceptable in a specific context. </li></ul><ul><li>Discuss approaches to CI through which firms can embrace multinational code of ethics. </li></ul>
    4. 4. Competitive intelligence definition <ul><li>a systematic, legal and ethical process for the gathering and (insightful) analysis of information, and the dissemination of actionable intelligence to decision makers, that can affect your company’s plans, decisions and operations. </li></ul><ul><li>(SCIP’s definition of CI) </li></ul>
    5. 5. Who are the stakeholders ? <ul><li>The traditional focus for business ethic was around the firm and its stakeholders (environment). </li></ul><ul><li>Ethics in market research is focused on the relation between the researcher and the end customer. </li></ul><ul><li>Competitors were usually excluded from the stakeholders group when coming to deal with ethics. </li></ul><ul><li>CI is focused on competitors and competitive arena. When comparing CI to market research, the competitor is the main subject of the study. Hence, should be treated like the end-customer. </li></ul>
    6. 6. Different Ethics to different stakeholders
    7. 7. Codes of ethics <ul><li>Flexible code </li></ul><ul><ul><li>General guideline. Open to interpretations </li></ul></ul><ul><li>Rigid or Regulatory code </li></ul><ul><ul><li>“ Dos and don’ts” </li></ul></ul><ul><ul><li>Can be seen as contract between the company and the environment. </li></ul></ul><ul><li>Storytelling, Case study, Narrative approach </li></ul><ul><ul><li>Bring up awareness, Educational code </li></ul></ul><ul><li>Golden Rules </li></ul><ul><ul><li>“ I will not do anything that may now, or in the future, harm, or embarrass, the corporation” </li></ul></ul><ul><ul><li>“ don’t’ do what you do not want others to do”. </li></ul></ul><ul><li>Question and Answer Approach </li></ul><ul><ul><li>Help an individual assessing a decision by answering a set of questions </li></ul></ul>
    8. 8. SCIP Code of Ethics for CI Professionals <ul><li>To continually strive to increase the recognition and respect of the profession. </li></ul><ul><li>To comply with all applicable laws, domestic and international. </li></ul><ul><li>To accurately disclose all relevant information, including one's identity and organization, prior to all interviews. </li></ul><ul><li>To fully respect all requests for confidentiality of information. </li></ul><ul><li>To avoid conflicts of interest in fulfilling one's duties. </li></ul><ul><li>To provide honest and realistic recommendations and conclusions in the execution of one's duties. </li></ul><ul><li>To promote this code of ethics within one's company, with third-party contractors and within the entire profession. </li></ul><ul><li>To faithfully adhere to and abide by one's company policies, objectives, and guidelines.  </li></ul>
    9. 9. The framework <ul><li>Introduce four variables to filter Information collection techniques. </li></ul><ul><ul><li>The technique </li></ul></ul><ul><ul><li>The Business context </li></ul></ul><ul><ul><li>Culture and ethical principles </li></ul></ul><ul><ul><li>Competitive Intelligence purposes </li></ul></ul>
    10. 10. Variable 1 : The Questionable Methods <ul><li>Collection techniques (Legal!!) </li></ul><ul><ul><li>Legitimate – respected, agreed either formally or informally by broader society </li></ul></ul><ul><ul><li>Misrepresentation or covert intelligence – name of the investigating company is not fully disclosed. </li></ul></ul><ul><ul><li>Improper influence and undue influence. </li></ul></ul><ul><ul><li>Improper means or False purpose. </li></ul></ul><ul><ul><li>-Unsolicited or accidental intelligence – (not really a group) </li></ul></ul><ul><li>There is a conflict between a technique’s effectiveness and ethical value. </li></ul><ul><li>There is a conflict between the importance level of CI (tactic -> strategic) </li></ul>
    11. 11. Variable 2 : The business context <ul><li>Regulation and Rules </li></ul><ul><ul><li>Porter : “bad and good competitors” </li></ul></ul><ul><li>Information Accessibility and the Law </li></ul><ul><ul><li>80-90% of competitive information is freely available and the remaining is not required. </li></ul></ul><ul><ul><li>80% is “white” information, 20% is “gray” and “black” information. </li></ul></ul><ul><li>What is public information? </li></ul><ul><ul><li>Provided by a competitor who has either chosen or is required to make this information public. </li></ul></ul><ul><ul><li>Defined by Confidentiality and Accessibility </li></ul></ul>
    12. 12. Public information (cont.) Non confidential Confidential Not Accessible Accessible Can’t be obtained by legal means The “INTRESTING” information : Confidential and available Internal Common Information. Usually less interesting Common knowledge
    13. 13. Geographical Context <ul><li>What is Legal in the destination country ? </li></ul><ul><li>What is Legal in the motherland ? </li></ul><ul><li>What is ethic in the destination country ? </li></ul><ul><li>What would be the consequences of ethic/legal issue in any country ? </li></ul><ul><ul><li>IBM in South Korea – Korean director was accused with bribery which resulted in NASDAQ stock , press release and more .. </li></ul></ul><ul><li>Is the company a local company working abroad or a global company ? </li></ul>
    14. 14. Variable 3 : Culture and ethical principles <ul><li>External Environment </li></ul><ul><ul><li>Legal, Cultural or geographical , Family </li></ul></ul><ul><li>Corporate </li></ul><ul><ul><li>Most influence regarding CI approach. </li></ul></ul><ul><ul><li>Code of ethics ,Rules, guidelines </li></ul></ul><ul><ul><li>How to achieve moral excellence </li></ul></ul><ul><ul><li>Resolve conflicts between individual and corporate </li></ul></ul><ul><li>Group Behavior </li></ul><ul><li>Individual </li></ul><ul><ul><li>Age, sex , rural/urban, education, level in hirarchy </li></ul></ul>
    15. 15. ethical principles - The four imperatives <ul><li>“ Ethic principles provide a common framework that individuals who hold differing normative positions can adopt when debating an issue”. </li></ul><ul><li>Harmlessness </li></ul><ul><ul><li>You have the right to study the other’s environment but you have obligation to preserve it. </li></ul></ul><ul><li>Beneficence </li></ul><ul><ul><li>Intelligence can be use to build partnership. </li></ul></ul><ul><li>Autonomy </li></ul><ul><ul><li>The investigated element has the freedom of decision </li></ul></ul><ul><li>Justice </li></ul><ul><ul><li>Firm should use the same techniques independently of the object studied. </li></ul></ul>
    16. 16. Variable 4 : CI purpose <ul><li>Neutral Intelligence </li></ul><ul><ul><li>Scanning the environment. </li></ul></ul><ul><li>Rival Intelligence </li></ul><ul><ul><li>Focus on competitors </li></ul></ul><ul><li>Collaboration Intelligence </li></ul><ul><ul><li>Such as due diligence activities </li></ul></ul><ul><li>Defensive Intelligence </li></ul><ul><ul><li>Forecasting threats, maintaining status quo, protecting from unethical/illegal activities </li></ul></ul>
    17. 17. The model
    18. 18. The Common mental spectrum