Ethics and the small business

Many of us have been disturbed by the apparent lack of ethics displayed by some leaders of large financial firms during the past few months. Which has led me to wonder about how concerned small businesses can and should be about ethics in their organizations.

Every day we make decisions, large and small, based upon our individual values. To make sure employees align with the values of the owners and leaders of small companies, and to help them do the right thing, businesses should consider creating codes of ethics. Here some things to consider:

1. List your core operating values. Limit the list to ten or fewer to ensure you can remember them, and reflect on them daily. Keep them posted as a reminder to you and your staff. Examples of core operating values held by some organizations are: recommending only the services or products the customer truly needs; honestly informing customers about products you stock; invoicing a customer only for the products and services provided; giving back to the community.

2. Create a policy statement. Define your philosophy on ethical business conduct. Create a statement that includes your operating values and calls for all employees to uphold those values every day in the services they provide for your customers.

3. Train your staff. Review the values you expect your business to embrace. Discuss performance actions that meet those values. Talk about situations that may challenge those values and how to handle them.

4. Evaluate how well your procedures support your values. Do your advertising and business documents reflect your values? Policies should be up front, clear, and concise. Your procedures for hiring and disciplining employees, hiring contractors, and working with suppliers should also reflect your code of ethics.

Once you’ve created a Code of Ethics, you must hold yourself, employees, vendors, and subcontractors accountable. Behaviour upholding company values should be applauded. Behaviour that detracts requires further training, guidance, or disciplinary action. Let your company’s code help you to balance the quest for profit and growth with fair, honest treatment and stellar customer service.