We hear the word ethics in business more and more but what does it actually mean? The word “ethics” comes from the Greek word “ethos” meaning conduct, customs or character. Ethics addresses the implementation of concepts such as responsibility, right and wrong and the application of moral ideals to practical human activities. Ethical analysis will address the constraints of moral standards and legal requirements and the consequences of actions. The output of such analysis is the determining of principles and protocols, the development of individual and group responsibilities and the verification of the outcome of the implementation of such a framework. Individual countries, cultures and business organisations will determine distinct codes of ethical behaviour. Individual organisations therefore need to determine their ethical strategy and the scope of such strategy may include the following:
1. Criminal behaviour and the need to operate within the legal framework. The strategy may include awareness training for individuals and teams so that employees understand the legal constraints on the business and the responsibilities this places on individuals;
2. Human values and personal behaviour. Ethical policy needs to define at a strategic and human resources level how people are expected to behave both internally within the business and also in their interactions with suppliers, customers and competitors and the development of business relationships;
3. Behaviour in business. Ethical policy should address how all corporate activities are undertaken, monitored and verified to ensure that they comply with legal guidelines and ethical standards. Ethical strategy should also include a review of potential ethical business risks and how these can be mitigated.
So what is your organisation’s ethical strategy and does it stand up to scrutiny?
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