The values of an organisation are used to indicate the type of conduct:

Required by employees when carrying out the operations of the organisation

That customers can expect from the organisation

Organisational values often cover the following areas:

Compliance with legislation

Employment of staff

Customer service

Receiving gifts from suppliers and customers

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Giving gifts to customers

Discrimination in the workplace

Employee integrity

Employee privacy

Quality standards of products and services

Example:

Some of the values that might be set for a Customer Contact Centre include:

Employees will act with honesty and integrity when dealing with customers, suppliers, government
agencies and fellow employees. At all times employees will endeavour to act in such a way that others
are treated with respect and dignity.
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Employees will never directly or indirectly engage in theft, fraud or embezzlement. No employee will
participate in fraudulent or deceptive activities towards the organisation, customers, suppliers or any
other party with whom the organisation has business dealings.

Company policy prohibits unlawful discrimination against employees or customers based on their
race, gender, religious or ethnic background.

The organisation will observe all laws and regulations governing business activity.

When organisations set values, they do so based on the ethics that they hold to be important.

What Are Ethics?

In our personal lives ethics provide an indication of what is right and wrong. We all have an ethical
framework that we operate within. This ethical framework is influenced by a number of factors, such as
laws, religious beliefs and socially acceptable standards of behaviour.

Organisations can also be regarded as operating within an ethical framework which establishes what is
right and what is wrong in terms of how they operate.

The following influences help determine the ethics of an organisation:

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 Government laws and regulations

Standards set by professional organisations

Customers' standards and values

Benefits Of Business Ethics:

When organisations and employees operate in an ethical manner, there are benefits to:

The organisation

Society

Benefits to the Organisation

When an organisation and its employees act in an ethical manner the following benefits to the
organisation may occur:
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A strong company image. As society places more emphasis on the ethics of the business world it is
important that an organisation operates according to the standards that society deems acceptable.

Improved quality of products and services. When employees act ethically they are more likely to
ensure that their work meets the quality standards expected by the organisation.

Criminal acts are reduced. When employees operate ethically criminal activity is eliminated. Criminal
activity can range from taking stationery items home to being involved in defrauding the company.

Increased company profits. Whilst increased company profits are not a reason for acting ethically,
they are a possible benefit. When customers view an organisation as being ethical they are more likely
to choose to deal with that organisation.

Benefits to Society

When organisations act ethically, society benefits in the following ways:

Customers are dealt with honestly and fairly. Unscrupulous behaviour towards customers is
eliminated and customers receive a higher standard of service when an organisation acts ethically.

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 The natural environment is dealt with in a more acceptable manner. Although legislation exists to
strictly control how organisations treat the environment these controls only work if an organisation acts
ethically and operates within the legislation at all times.

Employees receive fair reward and treatment. Ethical organisations ensure that employees are
rewarded fairly in line with government legislation, such as a minimum wage, and that employees are
treated fairly when being employed or during disciplinary procedures.

Employees are free from discrimination. Ethical organisations have policies and procedures in place
to ensure that all employees understand acceptable behaviour in terms of discrimination and that
instances of discrimination can be identified and dealt with fairly.

Codes of Ethics:

A code of ethics is a formal document outlining the standards and values that an organisation intends to
abide by. The code of ethics provides an indication of the type of behaviour that:

Employees are expected to follow when carrying out the operations of the organisation.

Customers and other organisations can expect when dealing with the organisation.
For examples of organisations' codes of ethics look at the following resource:

world wide web

Corporate Codes of Ethics Online

Social Responsibility:

An aspect of ethical behaviour that has received more attention in recent years is social responsibility.
Social responsibility refers to the belief that business organisations have a responsibility to society over
and above the need to maximise profits.

The types of social responsibilities expected of business organisations include developing and
maintaining ethical practice in society and a focus on environmentally friendly business practices.

For an example of an organisation's commitment to social responsibility go to:

world wide web

Social Responsibility

Organisations displaying social responsibility receive a number of benefits including:

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 Increased business. Business can be increased if customers view the organisation as contributing to
society over and above providing employment to its employees and profit to its shareholders.

Reduced government intervention. Government intervention will be reduced if organisations take

responsibility for issues that may impact society.

The ability to attract and retain high calibre employees. High calibre employees are increasingly likely
to be attracted to and remain with organisations that display social responsibility.