A guide to Business ethics

1. Business Ethics Presentation
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2. Presentation Outline
• Introduction and Objectives
• What do we mean by Business Ethics?
• Business Ethics – a definition
• Key contributors to Business Ethics
• Business Ethics improvement tips
• Recommended Reading
• Recommended Motivational You Tube Videos
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3. Presentation Objectives
As a result of the Presentation you will be able to:
• Take a fresh look at the topic of Business Ethics
• Understand what we mean by Business Ethics
• Plan improvements for your organisation
• Update your knowledge of Business Ethics
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4. Quote
“A good head and a good heart are always a
formidable combination”
- Nelson Mandela
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5. Possible Definition of Business
Ethics
“Business Ethics describe all aspects, both
profit-related and non profit-related (e.g.
Social Responsibility), relevant to the conduct
of the whole organisation, and individuals
within it, against which its corporate integrity
and responsibility are to be measured”.
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6. Key Elements of Business Ethics
The following contribute to descriptions of
Business Ethics:
• The Organisation’s Values
• The Organisation’s Code of Conduct
• Corporate Communications
• Conflict Management
• Corporate Best Practices
• Corporate Leadership
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7. Corporate Values
The Organisation’s Corporate Values play an extremely
important part in determining its Business Ethics. Well
defined and communicated Corporate Values spell out the
expected behaviours of employees when relating to others
both internally and externally. Employees who behave in
line with Corporate Values protect the organisation from
unnecessary risk-taking but also know exactly how to make
decisions or solve problems to enhance the organisation’s
image and reputation in line with its Business Ethics.
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8. Code of Conduct
Sometimes referred to as an Operating Credo, a Code of
Conduct spells out for employees not just how to behave in
line with Business Ethics but what they need to do in their job
to follow a Code of Conduct to ensure they do the
rights things right! An organisation which has clearly
communicated a Code of Conduct is more likely to operate
ethically for both commercial and non-commercial reasons.
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9. Communications
Success in the area of demonstrating Business Ethics depends
largely on what is communicated to employees and how.
Employees in order to buy-in to Business Ethics, not only need
to understand what the organisation is working to achieve but
they also need to see evidence of it. The frequency and
quality of internal and external communications should leave
employees in no doubt that Business Ethics are high up on the
organisation’s list of priorities and that every employee plays
their part in demonstrating Business Ethics.
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10. Conflict Management
Conflict is a norm. It is how organisations resolve conflicts, both internally
and externally that either support and strengthen their Business Ethics or
undermine them. There will always be a tension between the need for
economic (financial) ethics and the need for non-economic ethics (e.g.
Social Responsibility). In resolving conflicts due to this tension
consideration needs to be given to both aspects and a balanced decision
made for all to see. Organisations which in a conflict situation put profit
before the wider good of customers and other key stakeholders run the
risk of displaying double standards. The way conflict is managed reflects
considerably on how important Business Ethics figure in the life of
organisations.
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11. Corporate Best Practice
Just as an organisation continuously looks for ways to improve its own
internal processes, use of resources, customer interactions, staff training,
financial performance and a host of other contributors to their corporate
success they need also to frequently re-think their Business Ethics and
whether they leave them as they are or not. Business Ethics can build
Brands into powerful and popular organisations, achieving long-term
success, or a lack of Business Ethics can wreck an organisation overnight.
The message is to pay attention to continuous updating in this high
visibility area. Make sure that your organisation is keeping up with current
trends and best practices.
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12. Corporate Leadership
Leaders are people who create willing followers. Why?
Because the followers like what they see and hear. Note, it is
not just what they hear. It is what they see as well. Corporate
Leadership requires honesty, integrity and a commitment to
doing the right things often at personal loss so that the
organisation and its integrity will survive, prosper and grow.
Great Corporate Leaders put the Business Ethics of their
organisation first because they are passionate about them.
They put effort into “walking the talk”. They embody the
Business Ethics of the organisation.
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13. Business Ethics improvement tips
Corporate Values
Tick those tips below you believe you can use.
 Include Corporate Values into your Terms and Conditions.
 Include Corporate Values into Client Proposals.
 Include Corporate Values in Job Advertisements to attract
people with similar values.
 Create Corporate Values posters for display on office walls in
your organisation.
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14. Business Ethics improvement tips
Code of Conduct
Tick those tips below you believe you can use.
 Include your Code of Conduct in your Terms and Conditions.
 Include your Code of Conduct in Client Proposals.
 Include your Code of Conduct in Supplier Agreements.
 Create Code of Conduct posters for display on office walls in
your organisation.
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15. Business Ethics improvement tips
Communications
Tick those tips below you believe you can use.
 Include assessment of employee performance in the area of
Corporate Values in the organisation’s Performance
Management System.
 Start important internal meetings with a statement of
Corporate Values.
 Create a “strap line” to be included in Internal and External
Communications e.g. “Putting Customers First No Matter What
The Cost”.
 Reinforce the importance of “living out” the organisation’s
Business Ethics in employee reward and recognition
programmes.
 Make exhibiting the organisation’s Business Ethics a key part of
an employee’s career development within your organisation.
 Publish a list of the charities that you support.
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16. Business Ethics improvement tips
Conflict Management
Tick those tips below you believe you can use.
 Use a balanced approach which best represents your Core
Ethics including both profit-related aspects and non profit-
related aspects. Ensure you create “wins” for both parties in
both aspects.
 In negotiations with Customers and Suppliers use the
organisation’s Business Ethics to build trust.
 In conflict situations stand firm on your organisation’s Business
Ethics. These should be non-negotiable.
 Be clear on what your people need to do and say to reinforce
your organisation’s Business Ethics when handling conflicts.
 Use your Business Ethics to attract others with similar ethics to
avoid conflicts.
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17. Business Ethics improvement tips
Corporate Best Practice
Tick those tips below you believe you can use.
 Stay in touch with trends in your market-place.
 Include the “Green Agenda” in your Business Ethics.
 Incorporate the notion of “Being Fair” in your dealings with
others.
 Reinforce the “Caring” nature of your organisation.
 Be explicit about Obeying The Law.
 Spell out the organisation’s accountability in acting ethically.
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18. Business Ethics improvement tips
Corporate Leadership
Tick those tips below you believe you can use.
 Corporate Ethics is not always about handling straight forward
situations. Often there is no completely right or wrong answer.
Identify some of these situations and meet with your
employees to work though the issues concerned to arrive at the
best ethical response. What might be some of these issues for
your organisation?
 Make Corporate Ethics a way of life not a set of rules and
regulations. Agree with managers and employees what they
can do to challenge others in living out the Business Ethics of
the organisation.
 Appoint people as managers who really believe in the
Corporate Ethics and who live them out. Replace those
managers who undermine your organisation’s Business Ethics.
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19. Recommended Reading
1. Business Ethics: Ethical Decision Making and Cases
By O.C. Ferrell, John Fraedrich, and Ferrell
2. Good Profit: How creating Value for others built one of the World’s
Successful Companies
By Charles Koch
3. Moral Issues in Business
By William H. Shaw
4. Managing Business Ethics: Straight Talk about how to do it right
By Linda K. Trevino and Katherine A. Nelson
5. Ethics for the Information Age
Bu Michael J. Quinn
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20. Recommended Motivational You Tube Videos
for Entrepreneurs
1. Entrepreneurs can change the World
2. Where Good Ideas Come From
3. The Best Motivation Video
4. The Rocky Story by Anthony Robbins
5. Everything started as nothing
6. Drive: The Surprising Truth About What Motivates
7. Powerful inspirational true story...Don’t give up!
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