© IBE ....doing business ethically makes for better business….
Business Ethics: the essential components
Philippa Foster Back OBE
Director
Institute of Business Ethics
www.ibe.org.uk
© IBE ....doing business ethically makes for better business….
Topics
Setting the sceneEthics, values and business
behaviours
Business ethics as a practical matterThe importance of ethics in business
Summary
© IBE ....doing business ethically makes for better business….
What is Business Ethics?
… the application of ethical values to business behaviour …
Ethical Values
Business Behaviour the way we do business
= Ethical Business Conduct
Governance
Ethical commitments / Corporate Responsibility- to whom we are responsible:
- ways of working- relationships with stakeholders
Policies & Codes & Targets
Business Ethics is about …
Core business strategy
©IBE
© IBE ....doing business ethically makes for better business….
Values and ethics
All businesses operate on the basis of core values – implicit or explicit
These include business values and ethical values
© IBE ....doing business ethically makes for better business….
Identifying company values
Customer focus
Business values
Ethical values
Respect
Openness
Integrity
Transparency
Honesty Efficiency
Profitability
Quality
Trust
Customer focus
Forward thinking
Performance Reliability
Teamwork
Responsibility
Fairness
© IBE ....doing business ethically makes for better business….
Business Ethics as a practical matter
© IBE ....doing business ethically makes for better business….
COMPANY
employees
shareholders
NGOs media
regulators
suppliers
communities customers
stakeholders
interested partiescompetitors
Who is interested?
© IBE ....doing business ethically makes for better business….
Top business ethics issues for UK companies
1. Executive pay
2. Environmental responsibility
3. Discrimination in treatment of people Speak up policies (whistleblowing)
Gifts and entertainment
Conflicts of interest
Openness with information
Lobbying and donations
Work / home balance
© IBE ....doing business ethically makes for better business….
Code of Ethics
Code of Conduct
Communication&
Awareness Campaigns
Training &
Reinforcement
Elements of an effective ethics programme
Supporting context and
Culture
Monitoring&
Accountability
Ethical Values -> Ethics Policy
induction; on-line; dilemmas, debate; incentives …
leadership, strategy; polices; resources, business goals; compliance; CR, CSR …
what, why, how; understanding as well as information …
surveys, stakeholder engagement; business review, reporting…
•Guidance for Staff•The Way We Work• Business Principles•Our Commitments & Standards …
embed, implement, make operational …
Embed values -> behaviour
© IBE ....doing business ethically makes for better business….
When does a business problem involve ethics?
When it is not covered by the law If it raises moral problems for a member of
the team If it makes you reflect on what is a correct
and incorrect response If you are forced to consider where your
obligations and duties lie.
© IBE ....doing business ethically makes for better business….
Some red flagsIf you hear someone say any of these,
you can expect something unethical is about to happen!
“Well, maybe just this once.” “No one will ever know.” “It doesn’t matter how it gets done as long as it gets
done.” “Everyone does it.” “Don’t worry, it’s part of the culture.” “Shred that document.” “We can hide it.” “What’s in it for me?” “We didn’t have this conversation.” “I don’t want to know.”
© IBE ....doing business ethically makes for better business….
Doing Business Ethically
Improves trust and morale internally
Helps to ensure consistent conduct
Reduces risk
Strengthens external reputation
Over the long term will benefit the bottom line
© IBE ....doing business ethically makes for better business….
Business EthicsValues
Ethics Culture Trust &
Reputation
Conduct AND Financial
Performance
Risk
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