Business Ethics
The Basis of Trust
When we develop new trade channels, the first questions that are always asked are:
Can we trust the people we are dealing with?
Do they have the business ethics, that we require?
How do we know if they will act in a Professional Manner?
How can they demonstrate that they are ethical?
What are the consequences if they don’t act ethically?
Course Detail Competitive Edge
Qualifications Executive Certificate (Level 1 & 2)
Executive Diploma (Level 3& 4)
Executive Fellowship (level 5 & 6)
Duration 3 months -60 months
Cost $50,000 ea $500,000 (10)
location Anywhere in the World
Prerequisites Must have at least 10 employees
Why do we need business Ethics ?
Most people & Businesses want to act ethically.
Surprisingly there is no detailed system or process that businesses can follow.
With trillions of US dollars at stake the Federation of Co-operatives running under the banner of World Trade Co-operative mandate is to:
Establishing a true business system, that covers all elements of ethical trading.
Creating a fully accountable mechanism for organisations which breach or break the ethical standards expected
Journal of Business Ethics
Wong and Beckman (Journal of Business Ethics, V11, pp. 173-178) note that
"Researchers are claiming that current literature is filled with strong arguments for more ethical corporate leadership and incorporation of ethics in business curriculum."
Conspicuously missing however is the "how-to" in actually putting ethical goals and theories into practical action."
It Pays to be Ethical
For the past five years to September 2002 the annualised returns for DSI were 27.03% in contrast to the S&P at 25.5% and the S&P Midcap index at 18.75%.
Research in Britain has also found that socially responsible companies have higher stock market returns.
Source Dr Roger Spiller compere of the New Zealand Money show.
What should be done
. McDonald and Zepp, in their article "What Should Be Done? A Practical Approach to Business Ethics" (Management Decision, 28, 1, 1990, pp. 9-13), note that when someone brings up the topic of business ethics "... it tends to bring up cynicism, righteousness, paranoia, and laughter."
Many leaders and managers believe business ethics is religion because it seems to contain a great deal of preaching.
Or, they believe it to be superfluous because it seems to merely assert the obvious: "do good!"
THE COMPETITIVE EDGE
The Complete Business Ethics Management System
The corporate eco system
Parties to an Ethical Business System
Elements that need to be take into consideration
Shareholders
Financial and any other investors who invest in you and your business
Stakeholders
Customers and consumers
Suppliers and the parties in the supply chain
Employees, contractors, sub-contractors and people who work to supply services for the contractors
The wider community
Ethics Ethos
A Six Part Process for Businesses to Prove they are Ethical.
Firstly, you will need to identify the parties involved in the ethos program.
Secondly, we establish a three-part process where a statement or section of an act is displayed, then a reasoning as to why and what should be included and then we have an evidence process where the corporation provides evidence of conformity.
Corporate Governance
The Corporate Governance Principles cover six (6) areas
ensuring the basis for an effective corporate governance framework;
the rights of shareholders and key ownership functions;
the equitable treatment of shareholders;
the role of stakeholders;
disclosure and transparency; and
the responsibilities of the board.
Rewards
Individual Achieving accreditation for being an ethical business also has significant benefits for senior executives.
When the business has achieved level 1 and 2 the executive in charge may receive an Executive Certificate from the World Trade University.
When the business achieves level 3 and 4 the executive receives an Executive Diploma from World Trade University.
When the business achieves levels and the executive receives a Fellowship from the World Trade University.
Corporate The advantages of receiving accreditation brings rewards with the capacity to show investors, creditors, suppliers and clients that you have not only a well-run business but also one which acts in an ethical manner.
Business run in an ethical manner have been identified as achieving between 5 and 15% increased profit over those that do not.
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