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SME JOURNAL
Business Ethics:
DEVELOPING YOUR COMPANY'S ETHICS POLICY
There are definite advantages to owning your own business when you are wanting to establish an ethics policy. You see, ethics come from the top. Without setting an example at the top, it is often difficult, if not impossible,
to convince your employees that they too should be ethical in their business dealings.
A well-defined ethics policy along with an outline of related standards of conduct
provides the framework for ethical, moral behavior within your company.
What is the benefit to developing such a policy,
you may be wondering. The benefit is higher employee morale and commitment
which in most cases leads to higher profits. But higher profits should not be your motivating
factor in defining your ethics policy. An ethics policy should look at the bigger picture
of how we relate to society as a whole and what our responsibility is to the greater
good. Of course, in these days of downsizing and increasing change, some may argue that
these ideals are unrealistic. However, it is important to note that most of the opponents
of good ethics are focusing on short-term
versus long-term results. Many organizations which have participated in the downsizing
mania are beginning to realize that they have traded long-term employee morale and productivity
for short-term profit margins.
The bottom line is "what goes around, comes around." If you treat your employees with disrespect
and distrust, chances are they will do the same toward you.
When you are developing your ethics policy, you must decide what it is you want your
company to stand for, put it in writing, and enforce it.
According to Blanchard and Peale, you can base your policy on five fundamental
principles:
Purpose. A purpose combines both your vision as well as the values you would like to
see upheld in your business. It comes from the top and outlines specifically what is considered
acceptable as well as unacceptable in terms of conduct in your business.
Pride: Pride builds dignity and self-respect. If
employees are proud of where they work and what they are doing, they are much more apt
to act in an ethical manner.
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Patience.
Since you must focus on long-term versus short-term results, you must develop
a certain degree of patience. Without it, you will become too frustrated and will be more
tempted to choose unethical alternatives.
Persistence. Persistence means standing by
your word. It means being committed. If you are not committed to the ethics you have outlined,
then they become worthless. Stand by your word.
Perspective. In a world where there is never
enough time to do everything we need or want to do, it is often difficult to maintain perspective. |
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However, stopping and reflecting on
where your business is headed, why you are headed that way, and how you are going to
get there allows you to make the best decisions both in the short-term as well as the
long-term.
A company policy is a reflection of the values deemed important to the business. As you
develop your ethics policy, focus on what you would like the world to be like, not on what
others tell you it is.
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