In today’s challenging economy business owners of all sizes must be aware of business ethics.  Simply ‘making good business decisions for the right reasons’ is a good start but it is more complicated than that.  How do business owners assure themselves that their company is operating in an ethical manner?  It has to do with establishing an ethical culture within your organization.  Here is information from the Institute for Business Ethics, www.ibe.org.uk/developing.html that will help you in reviewing or developing your organization’s Code of Ethics.

Eight Steps for Preparing a New Code of Ethics

1. Get endorsement from the Board
   Corporate values and ethics are matters of governance. The board must understand the business case for an ethics policy and code, recognise their role in its success, their relevance to what they do and how, and be committed to monitoring the policies effectiveness, though a board committee.
   
2. Find a champion
   It is good practice to set up a board level (ethics or corporate responsibility) committee, preferably chaired by a non-executive director, or to assign responsibility to an existing committee (such as Audit or Risk). A senior manager will need to be responsible for the development of the policy and code and the implementation of the ethics programme.
3. Understand the purpose
   It is important to clarify the relationship between and understand your organisation’s approach to corporate responsibility, ethics, compliance and corporate social responsibility strategies.
4. Find out what bothers people
   Merely endorsing an external standard or copying a code from another organisation will not suffice.
   It is important to find out on what topics employees require guidance, to be clear what issues are of concern to stakeholders and what issues are material to your business activities, locations and sector.
5. Be familiar with external standards and good practice
   Find out how other companies in your sector approach ethics and corporate responsibility. Understand what makes an effective policy, code and programme from the point of view of your particular business, staff and other stakeholders.
6. Monitoring and assurance
   Consider how you will embed your code into business practice. Consider how the success of the policy will be monitored and to whom the business will be accountable regarding its ethical commitments. How will you know its working? What are the key indicators/measures of an ethical culture for your organisation?
7. Try it out first
   The draft code needs piloting - perhaps with a sample of employees drawn from all levels and different locations, to find out if it is user-friendly. The Institute of Business Ethics welcomes requests to comment on drafts.
8. Review
   Plan a process of regular reviews that will take account of changing business environments, strategy, stakeholder concerns and social expectations, new standards, and strengths and weakness in your ethical performance.

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