80% of employees report a code of ethics
define and audit ethical behaviour
There is much talk these days about ethics, values, and corporate social responsibility – and rightly so. These are increasingly important subjects.
This is the third of 10 THOUGHTS addressing ethics, values, and CSR in marketing.
It is heartening that so many businesses are now addressing ethics with the realisation that they are important to both employees and consumers. A recent global study of businesses found that:
- 80% report having a code of ethics
- 57% report having training that addressed ethics
- 60% say their boards accept responsibility for ethics
The fact that this was a self-report survey (without verification) might bring into question the credibility of these numbers. That said, however, these numbers suggest a growing understanding of the importance of business ethics.
Yesterday’s THOUGHT defined business ethics. It might be worth considering here what issues are covered by the term business ethics and which are noticed by target audiences. The literature suggests that these include:
- Providing products and services that do what they claim to do
- Being truthful and transparent
- Treating all people in a respectful, open, and honest manner
- Maintaining a high level of corporate governance
- Consistently obeying all laws and regulations
- Ensuring equality of opportunity and no discrimination
- Working with people and partners that are perceived as ethical
- Evaluating business opportunities with ethics as a priority
- Defining businesses values and living by them
- Admitting mistakes and articulating action
Deep down, we all understand what ethical practice is, and we want it in the businesses from which we buy. That said, we frequently wonder about the ethics of the businesses from which we buy. There is a lack of confidence that businesses will behave ethically, despite how important it is.
During the Royal Commission into banking in Australia, a CEO of one of the big four banks suggested that his business started off displaying best practice – but that it was like drift fishing, where the boat slowly drifts to a point where you are not sure where you are or how you got there. We might all start behaving ethically, but as the business grows little things slip between the cracks and, over time, the business drifts so far that best practice is a distant memory.
It is important to continually revisit ethics and ensure that consumer expectations are met, if not exceeded. If you don’t, social media can prove to be a powerful way to learn a lesson.
THOUGHT
Consumers are attracted to a business that behaves ethically. Employees and potential employees are drawn to a business that acts ethically. Ethics are important to all audiences.
It is critical to set your business on an ethical pathway and then carry out regular audits to ensure that the required ethics policies are in place and that all staff are consistently behaving in a manner aligned with those policies.
SOURCES
Ashton, Nielsen, Business Dictionary, Business Bank of Texas, Digital Marketing Resource Centre, Smart Company, Forbes, American Management Association, Zenzi, Investopedia, Accounting Web and Reliable Plant
John
MORE THOUGHTS – www.djohncarlsonesq.com