FON

UNIVERZITET R.M.

PRV-PRIVATEN-UNIVERZITET-VO-

Fakultet za primeneti stranski jazici i biznis

Business ethics
po predmetot

Mentor Prof. d-r

Izrabotila Br. indeks

07/0068(06)

Business ethics , , 2010

Contents Introduction Ethics with suppliers Ethics and customers Ethics and employees Ethics and banks and other providers of money Ethics and the environment and the wider public Conclusion References

Business ethics

Introduction Ethics are difficult to define in a precise way. In a general sense ethics code of moral principles and values that guide the behavior of individual or group to respect what is right or wrong. Ethics is defined as the science of morality and is divided into two main branches: 1st Theoretical or ethic metaetika - which lays down moral judgments 2nd Normative or practical ethics - which are prescribed. Ethics sets the standards for what is good or bad in the running and decision-making. Ethics deals with internal values that are part of organizational culture and shapes the decisions including social responsibility with respect to the external environment. Today ethics is an important part of any company, the successful application of ethics in everyday business form business ethics departments. Ethics is present in situations in which the activity of the person or organization can endanger others. Ethics can be better understood when compared with the behaviors governed by law and is free. Human behavior can be put into three categories, region of codified law (legal standard), an area of ethics (social standards) and the area of free choice (personal standards). The first is called the law, in which the values and standards are written in the legal system and implemented in the courts. In this area legislators have regulated that people and organizations need to behave in certain ways, such as to have driver's licenses or pay tax. The area of free choice is the opposite side of the scale and refers to the conduct for which no words indivual law and the organization enjoys complete freedom. Between these two areas is ethics. This area will have specific laws but standards of governance spread based on principles and values of moral conduct that leads the individual or 3

Business ethics

company. In the area of free choice concerning respect for oneself. In the field of coded law obedience is the law written by the legal system. Ethics with suppliers Nowadays for companies to exist and develop it is necessary to have set standards for access, treatment and relationship with suppliers. This can best be seen as internal rules that are prescribed, the adoption of ISO standards for transparency and ethical principles to their suppliers. This kind of work in Macedonia were part of the companies, according to their size, they are medium or large companies1. Analyzing this fact comes to the conclusion only companies that exceeded the phase of resistance and established market can afford the introduction of this principle at work. But clearly specifying ethical principles of their companies to strengthen its image and make sure that every vendor wants to have with a client. Below is shown transparent to reveal the importance of ethical business in a cosmetic company in Macedonia.

, , , , 2005

Business ethics

Ethical principles or in some companies is adopted code of ethics, very clearly and precisely that represents elements of ethics and rules of the game is set for the company and thus make filtering and achieve a higher quality of work. Often these are obligations that need to be filled by the client, and obligations and the way in cooperation with the supplier. Below is given an example of transparency, ethics suppliers of foreign companies. Supplier Business Ethics We are committed to the highest standards of ethical conduct in all of our business dealings. We invite all suppliers to compete for our business, and in return, suppliers can expect a level playing field. We have no hidden factors in evaluating suppliers and submitted proposalsall relevant 5

Business ethics

decision criteria will be spelled out in advance of soliciting a proposal. Our employees are prohibited from accepting gifts or gratuities from our suppliers. While our rules do allow for limited exceptions for items of nominal value, the offer or acceptance of gifts is inappropriate gratuity. Measurement Specialties reserves the right to reject any and all proposals and does not bind itself to accept the lowest bid for any materials, products, or services submitted. Non-acceptance of any proposal will not imply any criticism of or deficiency in any proposal. Non-acceptance will mean that another approach was deemed by Measurement Specialties to be more advantageous. In addition, suppliers are asked to only direct all inquires through the corporate sourcing groups and avoid any back-door selling techniques through our Engineering or Manufacturing organizations. Such an approach will eventually and unlikely result in no award scenarios or elimination from our supplier base. Ethics and customers Ethics consumer pays is greater place in the Macedonian companies especially those with foreign ownership structure of companies implementing their organizational culture and ethics. But if small businesses or businesses seeking to enhance their work is then required to implement the following general steps in the consumer ethics2. 1. Be Trustful: Recognize customers want to do business with a company they can trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business.
2

and

discouraged.

Under no circumstances will our employees solicit any gift or

, , , , 2005

Business ethics

2. Keep An Open Mind: For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow. 3. Meet Obligations: Regardless of the circumstances, do

everything in your power to gain the trust of past customer's and clients, particularly if something has gone awry. Reclaim any lost business by honoring all commitments and obligations. 4. Have Clear Documents: Re-evaluate all print materials including small business advertising, brochures, and other business documents making sure they are clear, precise and professional. Most important, make sure they do not misrepresent or misinterpret. 5. Become Community Involved: Remain involved in communityrelated issues and activities, thereby demonstrating that your business is a responsible community contributor. In other words, stay involved. 6. Maintain Accounting Control: Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of your company, but as a resource for any "questionable " activities. Gaining control of accounting and record keeping allows you to end any dubious activities promptly. 7. Be Respectful: Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and courtesy. Customer Relations in ONE Company interactions with customers must be fair and transparent. The Company succeeds due to the superior value of its product & 7

Business ethics

service portfolio, not due to captive, uninformed or confused customers. The Companys credibility depends on employees ability to consistently keep their promises; after all, it takes years to build the reputation and only a few seconds to ruin it. Happy customers are loyal customers. Employee behavior should reflect and uphold the customer is king principle. Employees should be polite and calm in their customer communications. Customer concerns should be listened to carefully and addressed to the greatest extent possible. This means taking personal responsibility to ensure a concern is addressed, not simply referring the issue to another department or colleague.

Ethics and employees Ethics of employees in companies indirectly allow their employees to know the limits and norms of behavior 3. This is accomplished through the adoption of codes of staff and this code is adopted in the sector of human resources who best knows the nature of the work of the company and the relevant rules and principles of conduct. Ethics principle for employees in ONE4 Each of us projects intentional and unintentional messages about our Company through our every day attitudes, behaviors and actions. Thus, each of us has the power to help confirm or negate our brand in the minds of others. Employees should be aware of this fact and seek to align these messages with our Company vision, mission and values. This is critical when representing the Company in any formal capacity (e.g., as sponsor, volunteer), but also important in employees private interactions.
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Source: John Schermerhorn: Management, Sixth edition, four views of ethical behavior, 1999 4 www.one.com.mk

Business ethics

Employees should address questions or comments they receive about our Company in a positive and helpful manner. If employees are asked to respond by a member of the press with a statement or opinion on company matters, they should direct the question to the Companys Corporate Affairs and Internal Communication Department. This is to avoid having a personal opinion viewed as an official company stance.

Ethics and banks and other providers of money Ethics in banking have a high place in its operations, creating the image of the bank and is in line with its success. Almost all banks in Macedonia have enacted or introduced codes of ethics in their work, codes of banking, bank fundamental values, protection of lichnitite data, transactions and bank secrecy. The banking sector in Macedonia is a segment of the prevailing financial system 5. Therefore, good quality and efficient corporate sector commercial banks is extremely important not only for the stability of our financial sector, but also for the stability of the economy as a whole. Today we witness that all corporate governance and corporate governance in the financial sector a top topic in the world scale, which gained its particular relevance to the outbreak of financial scandals and crises which in the last twenty years adopt unexpected proportions. For the last global financial crisis, which affect the real sector (economic crisis has become so) specifically accused mechanisms of banks and other financial institutions since the crisis, in a part caused by growing presence of risky instruments ( derivatives) institutions. in the operation of banks and other financial

. Beber &A., Poslovna etika, Zagreb, 2000

Business ethics

Below is given the code of ethics of the employees in Stopanska bank. GENERAL PROVISIONS This Code of Ethics does not provide new obligations, but merely sets standards that are generally accepted, that banks have established through many years of work in order optimization of banking professionalism. 1st Principle of legality in the operation 2nd Principles of integrity 3rd Principle of Professional Conduct 4th Principles - Customer is always right 5th Principle of Awareness 6th Principle of Professional Competence 7th Principle of objectivity 8th Principles of efficency 9th Principles of confidentialy of information 10th Principle of avoiding conflicts of interest 11th Principle of prohibition of receipts gifts 12th Principle of public appearance and publicity 13th Principle of respecting Associate 14th Principle of fair competition FINAL PROVISIONS Actualization of Corporate Governance in Macedonia opens the question of implementing ethical corporate behavior, norms, codes, regulations, or building ethical corporate culture 6. The new law specifically regulates the banks in this area, ie the decision on corporate governance in banks, which among the set of policies in the spirit of corporate governance, raises ethical codes as required in the banks. But it is only the formal aspect of the problem.

www.hrdf.org.mk

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Ethics and the environment and the wider public The concern for the environment by the company's feedback, making it possible to have a good source of raw materials, healthy environment and preserving it. The concern for environmental companies often expressed through the establishment of technological processes that do not make pollution by supporting various ecological campaigns or donating financial resources to improve the environment.

Physical Work Environment in ONE As in any cohesive community, it is important that employees respect those around them by avoiding behavior that can disrupt, distract or otherwise harm the productivity of others. Disruptive Behavior Shouting, playing loud music, conducting lengthy personal conversations and other behavior that interrupts the productive work of our colleagues is unacceptable. Clean Desk Policy

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Business ethics

A tidy desk is a sign of good organization, efficiency and effectiveness. Employees should do their best to keep their desks tidy during work hours. At the end of the working day, employees should tidy up their desk and remove office papers, coffee mugs, clutter and other unnecessary items. Smoking at Work Employees have a right to work in a healthy and smoke-free environment. As of January 1, 2010, the Companys no smoking policy applies in all company premises and to employees at all levels, visitors, contractors and interns.

Conclusion Ethical business practice or non-etical usually reflect the values, attitudes, beliefs and behavior that exist in organizational culture, therefore ethics is so much organizational and personal issues. Managers carry a specific personality and behavioral traits in the work. Personal needs, family and religious background influence all together form the value system manager. Specific personal characteristics such as ego - the force, confidence and strong sense 12

Business ethics

of independence could prevent the manager in making ethical decisions. One important personal characteristic is the stage of moral development. In convensional level, individual care for external rewards and punishments and obey the authority to avoid certain personal effects. In this context organization level may be associated with managers who use or push-up autocratic style of managing employees with dependent-oriented implementation of specific goals. On the second level called conventional people learn to behave in line with expectations for good behavior defined as such by colleagues, friends, family and society. Merger of social and personal commitments is important. Collaboration of the Working Group is the preferred manner to meet organizational goals, and managers use management style that encourages interpersonal relations and cooperation. In postconvencial level individuals are guided by the internal structure of values and standards and to avoid the rules and laws that violate these principles. Internal values become decisions based not on the collection of absolute right or wrong but the principles do not cause harm to others. One reason that higher levels of moral development is the impact of globalization. Globalization has made more complicated ethical issues for today's managers. American executives who work abroad should be sensitive and open to other systems and to be brave to solve difficult issues. Rarely can non-etical action ethical or companies to be attributed solely to the personal values of a manager. The values assigned to the organization are very important, especially when most people understand that the second level of moral development which means that they believe that their duty is to exercise the duties and expectations of others.

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References 1. , , , , 2005 2. B. Beber &A., Poslovna etika, Zagreb, 2000 3. Source: John Schermerhorn: Management, Sixth edition, four views of ethical behavior, 1999
4.

www.hrdf.org.mk

5. www.globalhr.mk 14

Business ethics 6. www.one.com.mk

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