© IBE....doing business ethically makes for better business…. Business Ethics: the essential components Philippa Foster Back OBE Director Institute of Business Ethics

© IBE....doing business ethically makes for better business…. Topics Setting the scene Ethics, values and business behaviours Business ethics as a practical matter The importance of ethics in business Summary

© IBE....doing business ethically makes for better business…. Setting the Scene

© 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 NGOsmedia regulators suppliers communities customers stakeholders interested parties competitors 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…. What are organisations doing?

© 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…. Underpinning Risk Management

© 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 flags If 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….

© IBE....doing business ethically makes for better business…. Summary

© 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 Ethics Values Ethics Culture Trust & Reputation Conduct AND Financial Performance Risk

© IBE....doing business ethically makes for better business….

© IBE....doing business ethically makes for better business…. Thank you