Siam Cement Group (SCG)

The SCG has a strict ethical code of conduct. Its key features are shown in the table below.

Business ethics Code of conduct

 Fairness to all who have business  Upholding the principles of honesty

relationships with the company, and fairness.
including society and environment.
 Protecting the properties and
 Making business gains in a proper reputation of SCG.
manner.
 Conducting business in the best
 No alliances with political parties. interests of SCG and its
stakeholders.
 Non-discriminatory treatment of all
staff and stakeholder groups.  Behaving appropriately at all times
towards others.

According to a report by Judith Ross, as SCG expanded beyond Thailand managers came
under pressure to compromise on its corporate code of ethics. The company’s standards on
bribes and other improper payments, for example, made it difficult to compete in places
where such unethical payments are a way of life. This example demonstrates the classic
problem: should firms conform to the standards of the country they operate in or should they
try to export their own high moral principles to other lands?

Source: http://hbswk.hbs.edu (adapted)

1. Explain what you understand by the terms:

a.  business ethics [2]
b.  code of conduct. [2]

2.  Explain how SCG and its employees might benefitfrom the clear statement of
business ethics andthe code of conduct. [6]

3.  Should a business such as SCG ever use unethical methods in a country where they
are the ‘norm’,for example the giving and accepting of bribes?Justify your answer.
[10]