NFIB

A Small-Business Code of Ethics
03/ 15/ 2004

by Vicki Gerson

Business ethics is an important issue in today's business world. Currently, major corporations in the United States and abroad are being scrutinized for creating dummy companies and fake balance sheets, skimming money into executives' pockets, and other unethical behavior.

Whether you are a two-person firm or employ 500 people, consumers want to deal with an ethical business. One way to make sure your business always employs ethical procedures is to follow a written ethics code. Take this short quiz to evaluate your current ethics code status:

1. Does your business have an ethics code?
2. Are your employees aware of the code?
3. Do you communicate the ethics code to all employees regularly?
4. If you have an ethics code, are your actions consistent with the values targeted?

Ethical behavior in your business must start with top management. To prevent fraud, employees need to know that you have values as well as a concept for motivating people within your company. Besides creating an ethics code, consider employing the following tips:

* Create an independent board of directors or advisory board. Make sure your employees know you are aware of what is happening in your company.

* Every quarter hold a staff meeting focused on ethics. This way you are constantly integrating an awareness of ethics to your employees.

* Conduct periodic ethics audits to help you assess the current state of affairs in your company. During an ethical audit, four questions should be asked:

1. What is my business' ethics code?
2. What do your employees know about your ethics code?
3. What can you do to strengthen your ethics code?
4. What are the weaknesses of the ethics code?

* Finally, review your program yearly and decide what needs to be changed or implemented.

By taking a look at your ethics policy, your business can achieve greater ethical behavior in today's business world.

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