Code of Conduct and ethics

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Code of Conduct and ethics

• Code of Conduct
• Business ethics
• Wednesday 4
• Steffen Thomsen

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Code of Conduct

• Why code of conduct and guideline for business
  ethics?
• Because of internal reasons
• Because of external reasons
• 4 levels
• Global (UN)
• National (government, MSI)
• Industry (industry association)
• Company (management and board)
• How we act as individuals

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Code of Conduct and ethics

• EICC CoC outlines standards to ensure that
  working conditions in the electrnics industry
  supply chain are safe, that workers are treated
  with respect and dignity, and that manufacturing
  processes are environmentally responsible.
• IBM (to partners) You must observe the highest
  ethical principles in all your activities in your
  IBM business relationship and avoid engaging in
  any activity that involves even the appearance of
  impropriety.

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Code of Conduct and ethics

• Maersk We recognise the importance of conducting
  business in an ethical and lawful manner. In all
  our activities we strive to be role models for
  good business behaviour.
• LEGO The LEGO CoC is intended to encourage
  commitment to responsible production and business
  principles around the worldin a manner that
  respects the right of their employees and the
  environment.

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UN Global Compact

• UN Global Compact
• Initiative by Kofi Annan in 1999-2000
• The mother of all codes of conduct
• Sets the standards for companies around the world
• Has also served as guideline for governments,
  associations, NGO etc.
• Free and voluntary initiative
• Free to use and inspire, no fees
• Not allowed to use logos

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Code of Conduct and ethics

• UN Global Compact
• Today approx 2,500 large companies are members
• The guideline has served as basis of thousands of
  company-CoC
• Stakeholders
• UN
• Companies (and associations)
• Governments
• Labour (and labour unions)
• NGOs

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UN Global Compact

• UN Global compact 10 principles
• Human rights
• Not complicit in human right abuses
• Freedom of association
• Forced and compulsory labour
• Abolition of child labour
• Discrimination in employment
• Precautionary approach to env.
• Environmental responsibility
• Env. Friendly technologies
• Corruption

Human rights
Labour rights
Environment
Anti corruption
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Code of Conduct and ethics

• UN Global Compact is not very specific on
  business ethics
• Global industry association have developed
  Business Integrity Policies and guidelines
• E.g. Electronics industry (IBM, HP, DELL etc)
• E.g. FIDIC (consulting engineers)
• Most companies adapt these guidelines into its
  corporate guidelines in a modified way, e.g. DFSME

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Code of Conduct and ethics

• Standard content of CoC
• Business integrity
• No improper advantage (bribes, corruption etc)
• Fairness in business practise and competition
• Responsibility to society (or community)
• Protection of identity
• Respect and dignity

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Code of Conduct and ethics

• And specific point must be added, e.g.
• Anti-trust regulations
• Insider trading
• IPR
• Competence
• Child labour

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Code of Conduct and ethics

• CoC in the supply and value chain
• Upholding CoC standards in the entire value chain
  is a common requirement for many European
  consumers
• Hence European companies will impose CoC
  standards to their suppliers and their suppliers
  suppliers.
• Large IT suppliers are demanding CoC by their
  partners, e.g. HP and IBM.

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Code of Conduct and ethics

• A well worked out CoC will
• Improve your business internationally
• Improve staff morale and working environment
• Create a more safe and pleasant work place
• Make staff stay with your company
• Make your business clean and healthy
• Be an added value in your marketing
• .if it is sanctioned and not just a piece of
  paper!