As mentioned by Victor Fung, CEO of Li & Fung Limited, business ethnics should apply not only to whole corporation, but also every units of the corporation. In order to create companies’ ethnical culture, they should first define the culture. This definition need to be crystal clear to all members within organizations, including stakeholders, executives, middle managers, and all general staffs. They should also incorporate the culture into organizations’ mission, vision, core value and strategies. Ethnical culture should have a performance evaluation system that has explicit references to values, having values integrated into operating systems, and examining key decisions in light of values. But if the systems are ignored or if performance pressure or financial criteria trump values, the ethics get lost.
While a typical values statement runs about a page, a code of conduct is usually a booklet that includes a background on policies, gives details needed to apply the policies to different departments, and includes instructive Q & A’s. All employees should posse well-organized and comprehensive code of conduct documents. Ideally, all employees should have annual signoff and agree to follow the code of conduct.
Best practices involve having a senior executive overseeing the ethics effort, having a dedicated ethics officer, and having an active audit or ethics committee, with regular reporting to the board.
What the management team does dwarfs everything else when it comes to corporate ethics and values. They are a walking embodiment of values, day and night, in public and in private. Best practices include casual communication, notice board, e-mail, regular forum & meeting, etc., about values. Regular trainings are arranged not only for new ...