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The possibility and need of The possibility and need of business ethics codes in small business ethics codes in small and medium-size enterprisesand medium-size enterprises
Ain KabalAin Kabal
Vice President of EVEAVice President of EVEA
08.04.200808.04.2008
IntroductionIntroduction
EVEA is a non-governmental, non-profit EVEA is a non-governmental, non-profit association of SME's and self-employed persons association of SME's and self-employed persons performing a representative, advocacy and performing a representative, advocacy and lobbying function for small and medium-sized lobbying function for small and medium-sized businesses as a social group. businesses as a social group.
Established in 1988.Established in 1988. Represents more than 1000 entrepreneurs.Represents more than 1000 entrepreneurs. Member of UEAPME.Member of UEAPME. EVEA is represented in more than 30 different EVEA is represented in more than 30 different
committees, councils, lobbying groups.committees, councils, lobbying groups.
Is there a need for business ethics Is there a need for business ethics code in SMEs?code in SMEs?
Currently bits and pieces of business ethics are included Currently bits and pieces of business ethics are included in various documents (employment contracts and in various documents (employment contracts and employment contract act, internal work regulations etc), employment contract act, internal work regulations etc), no standardised approachno standardised approach
Vast majority of SMEs have no codified business ethics Vast majority of SMEs have no codified business ethics regulation in use, except subsidiaries of multinational regulation in use, except subsidiaries of multinational global corporationsglobal corporations
Resources of a standard SME are not often sufficient to Resources of a standard SME are not often sufficient to produce a business ethics code, although there is a need produce a business ethics code, although there is a need for suchfor such
Code could help in establishing normal business ethics Code could help in establishing normal business ethics practices and prevent undesirable behaviourpractices and prevent undesirable behaviour
The possibilities of business ethics The possibilities of business ethics codescodes
Standard code, prepared and enacted by government?Standard code, prepared and enacted by government? Sectorial codes, generally accepted by sectorial Sectorial codes, generally accepted by sectorial
associations?associations? SME code of ethics – near future to come?SME code of ethics – near future to come? We cannot expect the authorities to facilitate us with We cannot expect the authorities to facilitate us with
readymade codes, at the end of the day it is the business readymade codes, at the end of the day it is the business society itself which sets rules for itself, the associations society itself which sets rules for itself, the associations being the tools for collecting the experience, resources being the tools for collecting the experience, resources and best practicesand best practices
Business ethics is a phenomena which changes in time, Business ethics is a phenomena which changes in time, we try to reach the higher standards, but we cannot be we try to reach the higher standards, but we cannot be much better than the environmentmuch better than the environment
