[Business Ethics and Social Responsibility

1
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development

Module 003 The Role of Business in Social and

Economic Development:
Common Practices in Business Organization

Ethics primary concern is a person's moral judgment on what is right and

wrong. Every decision made within an organization are influenced by
whatever is the culture of the business or the company. The decision to
behave ethically in the context of having moral standards in an organization
is important; employees decides what they think is the right course of action
in a certain situation but this may also mean rejecting the course imposed if
it will lead to a biggest short-term profit for the company.

At the end of this module, you will be able to:

1. Identify the meaning of protocol, decorum and policy;
2. Recognize the importance of creating policies in a business;
3. Be familiar with basic business policies that may help establish business
goals and opportunities.

What are the possible benefits of having ETHICS as a guiding principle to a

business?
Keeping an principled environment in a company may:
 attract more customers and increase sales and profits;
 make employees want to stay longer with the business or company and reduce labor
turnover and lead s to an increase in productivity;
 attract more employees wanting to work for the business or company and reduce
recruitment costs and enable the company to get the most talented and efficient
employees.
 attract investors and keep the business and company's share price high, thereby
protecting the business from being takeover or from bankruptcy.
Contrary to unethical behavior or a lack of corporate social responsibility, by comparison,
may damage the business or company's reputation and make it less appealing to
stakeholders. Profits could fall as a result.

Course Module
Protocol and Decorum: Business Manners
There are sensible reasons to be courteous and fair whether in the family circle, in a
community, in public places and when a workplace environment .The business
world has radically changed in the past years and it must be very careful in treating
their clients to the highest respect they run the risk of malicious misconduct. This is
one big dilemma for businesses as now a days, the Internet plays a big role in
everyone's routine. Reviews and blogs for inquiring people are all over the net; this
may have a positive or negative intonation for a company.
Protocol and decorum is an important factor in running a business or organization.
Without protocol and decorum there will be unavoidable friction, confusion,
misunderstanding and emotions that may get in the way of the business. Following
protocols of a professional and executing words with decorum, gives the business
person a powerful tactical advantage over their clients. Following strict protocols
and decorum's means that the business person cannot be easily drawn into making
a appalling business decisions.
Protocols are established procedures one follows to execute a task.

pro·to·col \ˈprō-tə-ˌkȯ l, -ˌkōl, -ˌkäl, -kəl\

Protocol
a code prescribing strict adherence to
correct etiquette and precedence
https://www.merriam-webster.com/dictionary/protocol

Protocols are defined by custom, education, professional codes and statutory law.
The protocol, "do business in a business like way" means that this approach to
business is the most efficient, effective, trouble-free and profitable means to conduct
business. No one can make a business person acknowledge or forcible accept this
rule but to ignore it may affect profitability and expect a conflicting business
environment.
Decorum relates to how a person negotiates a sale and handles any ensuing
problems.

de·co·rum \di-ˈkȯ r-əm\

Definition of decorum
propriety and good taste in conduct or appearance
https://www.merriam-webster.com/dictionary/decorum

Decorum indicate the emotional situation in which business is conducted.

Considerate, personable, cheerful, responsible, patience, and the like describe some
of the elements of decorum. A violation of decorum would be to express outrage and
emotion towards the case worker regarding how a process is being handled.
 [Business Ethics and Social Responsibility
3
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development

In business, observance of decorum is necessary to maximize profits and minimize

risks and conflicts. To execute business with decorum quite literally means to take
the high ground in a transaction. Clients will use the lack of decorum to resist
payment or ask for extra considerations. Decorum minimizes the risk of any
unnecessary lawsuits that arise out of misunderstandings.
The mathematical nature of conflicts and the need for protocol and decorum
Here are situations where proper workplace decorum is necessary:
Workplaces now a days have become less formal and more business transactions
are taking place outside traditional office settings, the line that separates business
from personal can vaguely be recognized. It is important to maintain a certain level
of workplace decorum, whether you are in the office, on field, or simply in front of
telephone line conversing with clients.
Here are simple guidelines, which address a variety of scenarios:

1. BUSINESS MEETINGS IN PERSON (FACE TO FACE)

How you conduct yourself during an in-person meeting will leave a lasting
impression on your boss and colleagues.

Be considerate of others’ time.

- Be on time.

- Communicate the purpose, duration and the items for discussion in advance.

- Thank attendees for their participation and contribution. Demonstrate

appreciation b circulating minute of the meeting.

- Avoid monopolizing the conversation. Have a listening and attentive ears.

Ensure that everyone has had a chance to speak before ending the meeting.

- Avoid assigning responsibility to anyone not present in the meeting unless you
have had the chance to inform the person ahead of time.

- If you are attending another person's meeting, be respectful and resist the urge
to multi-task.

- If waiting for an unavoidable phone call, turn your phone to vibrate or silent, and
excuse yourself before answering. Otherwise, turn your devices off.

Course Module
2. ON THE PHONE

Although the cell phone has allowed us to take calls wherever and whenever, there
are still proper phone etiquette to guide us especially in workplaces.

- For company landlines, always answer the phone with warmth and enthusiasm,
and identify yourself and your department.

- When initiating a call, be sure to introduce yourself and explain why you are
calling. This will help ensure that you are reaching the right person or
department.

- Always return calls within twenty-four (24) hours. If you do not have an answer
for someone, advise the person that you will address the concern the soonest
possible. If someone else would better serve them, point them in the right
person and department.

3. USING E-MAIL

Email is a very efficient and effective communication tool, but it is not always the
best choice of communication. It is important to know when it is appropriate to
email, when it is better to pick-up the phone or to meet in-person.

- Email communications should be concise, with a subject line that adequately

describes the content of the message. If a topic is so complex that you cannot
sum it up in three paragraphs or less, the communication probably must be
through a phone call.

- "Reply All" must be weighed whether or not you really need to copy all
recipients of the original distribution.

- Be sure that your name and contact information are included in a signature line.

- Use complete sentences and avoid slang, abbreviations or emoticons, unless you
are certain the person receiving the email will appreciate them.

- When emailing someone in authority, have someone read the message before
sending it to check if you have overlooked a detail. If no one is around, read your
message aloud and listen carefully to the tone to ensure that you are not leaving
room for misinterpretation.
 [Business Ethics and Social Responsibility
5
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development

4. PROPER DRESS CODE AND APPEARANCE

It is important that one is cautions in their physical appearance. Showing a lack of
concern can be interpreted as being disrespectful to clients or co-workers and those
in authority.

- Iron clothing and avoid worn out clothes in workplaces

- Be sure to shave face and avoid greasy or unkempt hair which conveys lack
professionalism.

- In general, business attire requires men to wear decent shoes, slacks and a
collared shirts if there are no required uniforms and for women; decent shoes, a
blouse, dress, pants or a skirt.

5. BUSINESS AND COMPANY FUNCTIONS

A good impressions made during a gathering, dinner or reception can make or break
a business any deals.

- Always bring calling cards, and be sure to arrive on time.

- Do some work ahead of time to familiarize yourself with attendees, and provide
introductions where appropriate.

- If you forget or are unaware of someone’s name, introduce the person you know
first, and the unknown person may introduce themselves. If not, excuse yourself,
and admit you are having trouble recognizing the person.

When speaking to people you must portray a positive attitude and be friendly no
matter what the situation. A customer or co-worker will respect you much more and
take you seriously if you remain to have a professional work attitude and do not
bring outside issues that can affect your mood in the work area. However, how you
act outside of the work area is also a significant factor that can effect how your co-
workers view you. If you have a bad behavior or act irresponsible outside of the
professional life, some may not take you seriously. Make sure to smile and look
approachable, not like you are going to contribute a negative influence or attitude.

Course Module
Be professional and make sure you come through with what you say and what you
do. This applies to the “do as I say, and as I do,” set for by Jay Heinrichs. In
conclusion, the key factors to a successful impression or decorum on co-workers or
an audience in a professional business are fitting in, holding a positive attitude, and
looking and acting professional.

Policies

pol·i·cy \ˈpä-lə-sē\
Definition of Policy
Management or procedure based primarily on material
interest

https://www.merriam-webster.com/dictionary/policy

A policy is a principle or protocol to guide a decision and achieve rational outcomes.

It states the business or company's intentions to meet an end goal. This can assist in
making an objective and subjective decision making. Policies may differ from rules
of the law b ut with a common goal of achieving a desired outcome.

Business policy basically deals with decisions regarding the future on an ongoing
enterprise. These decisions are taken to top level carefully evaluating the
organizations strengths and weakness in terms of product quality, pricing,
leadership positions, resources in relation to the workplace environment.

Importance of business policies:

A written business policy communicates your company's expectations about

appropriate employee work ethics and performance. A Policy demonstrates the
acceptable performance boundaries while simultaneously addressing the
employees' needs.

Some employers prefer a written policy that covers every imaginable situation that
may occur but others prefer no written policy, whereby management only decides
depending on each case as the situation merits. Nonetheless, there are important
points to consider in making an effective business policy;

a. Balance

The ideal business policy encourages individual productivity without making the
employee feel as though the employer or the person in authority is micromanaging
 [Business Ethics and Social Responsibility
7
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development
them. According to Entrepreneur magazine, "neither an extremely detailed nor a
nonexistent business policy create a highly productive work environment".

It is important that business expectations are in writing so employees know how to

meet the requirements of the business or company. this will serve as their guiding
points in achieving goals.

It is important that employees know what you expect him to achieve. Once
communicated properly, and these are carefully enforced, manage and updated, it is
most likely to have an effective workplace and excellent business revenue.

b. Equal Opportunity

Equal opportunity must be clear in any rules; to promote fair treatment in the
workplace. Most organizations implement equal opportunity policies like anti-
discrimination and affirmative action policies, for example, to encourage
unprejudiced behavior within the workplace. These policies discourage
inappropriate behavior from employees, supervisors and independent contractors
in regard to the race, gender, sexual orientation or religious and cultural beliefs of
another person within the organization.

c. Employees' Job Description

One significant content of your business policy is including a description of every

position in the organization; from the highest ranking down to the ranked in file.
Employees must understand their role, duties and responsibilities and how they will
interact with others within the organization.

Each employee should understand how their work impacts others in the business
organization. Make the reporting structures clear both inside the department,
between departments and companywide. Once employees understand their
responsibilities, it is another vital point to see to that they will be held responsible
for their work performance.

Course Module
d. Liability

All employees, including managers, must understand the acceptable behavior

boundaries at work. When an employee misbehave on the duty, the employer may
be held liable for how that situation affects clients, individuals or other employees.
Thus, a written business policy with clear behavioral expectations on their end will
help establish the authority's disapproval of the employee's inappropriate behavior.
The lack of a written business policy may lead to legal action.

e. Employee Conduct

An employee conduct policy establishes the duties and responsibilities each

employee must adhere to as a condition of employment. This must all be clearly
established prior to the start of the work. Conduct policies are in place as a guideline
for appropriate employee behavior, and they outline things such as proper dress
code, workplace safety procedures, harassment policies and policies regarding
computer and Internet usage. Such policies also outline the procedures employers
may utilize to discipline inappropriate behavior, including warnings or employee
termination.

f. Consequences for Violations

A business must establish rules that address any violations from the policy. Stating
the consequences for violating business policy puts the employee on notice and also
increases the employer's options for effectively dealing with behaviors contrary to
policy. Decide what behavior mandates an immediate dismissal and what behaviors
will trigger a disciplinary approach, and clearly outline the steps involved in your
disciplinary procedure. A detailed outline of procedure must be specified to avoid
malicious movement from the authorizing personnel.

From a clean and concise policy, the employee will have a better understanding of
the disciplinary process. It is better is the goal is to improve the employee's future
performance and the company's employee retention rate by helping the employee
improve, rather than losing him as a valued member of your business team.

Company policies and procedures establish the rules of conduct within an

organization, giving a intensive outline of the responsibilities of both employees and
employers. Company policies and procedures are in place to protect the rights of
workers as well as the business interests of employers.
 [Business Ethics and Social Responsibility
9
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development

Some other examples of business Policies & Procedures that a business must take
into consideration:

Attendance and Time Off Policy

Attendance policies set rules and guidelines surrounding employee observance to

work schedules. Attendance policies define how employees may schedule time off or
notify superiors of an absence or late arrival. This policy also sets forth the
consequences for failing to adhere to a schedule. For example, employers may allow
only a certain number of absences within a specified time frame. The attendance
policy discusses the disciplinary action employees face if they miss more days than
the company allows. Attendance greatly affects the output of a workplace and must
always be given appropriate action.

Substance Abuse Policy

Many companies have substance abuse policies that prohibit the use of drugs,
alcohol and tobacco products during work hours, on company property or during
company functions. This is not only guided by company rules but even local
government mandates. These policies often outline smoking procedures employees
must follow if allowed to smoke on business premises. Substance abuse policies also
discuss the testing procedures for suspected drug users, this is also another
mandated requirement of the local government upon submission of requirements
for employment.
A business founder has to do everything possible to limit liability for any problems
that may occur in the premise and any situation that may defer the production of its
business revenue.

Workplace Safety Policy

Whether your business operates as a small time retailer, a mining company or has a
standard office procedure, anyone who steps onto your property faces a level of
threat. A data entry worker could develop carpal tunnel syndrome while in your
employ. These are common illnesses that are related to work. Your company vice
president could injure himself moving a computer from one office to another. By
putting workplace safety policies in place, you can help mitigate any damages
caused by an employee's negligence.

Course Module
Disciplinary Policy

Occasionally an employer may encounter the need to terminate an employee. When

that occasion arises, one must have a much more straightforward experience if the
employee has been cautioned about the process of termination. If expectations for
performance are outlined in the employee's initial job description, show an account
of problems by giving regular evaluations or appraisal.

Device Usage

Some may not realize that as an employer, they could be held responsible for the
actions of employees. If a workers conducts illegal activities on a company systems,
Employer is answerable for it. Businesses protect themselves against liability in
these instances by having a clearly written usage policy that outlines what workers
can and cannot do on devices connected business system.

Work Hours

A detailed working hours to monitor manned time is very important especially if

your business is service oriented. One important step should relate to employees
availability, responsiveness during your working hours.

CHARACTERISTICS OF A GOOD POLICY

- Policy should help in achieving the enterprise's objectives.

- It should provide only a broad outline and leave scope to subordinates for
interpretation so that their initiative is not hampered.

- Policies should not be mutually contradictory and there should not be

inconsistency between any two policies which may result in confusion and delay
in action.

- They should be sound, logical, flexible and should provide a guide for thinking in
future planning and action. Further, they should provide limits within which
decisions have to be made.

- Policies should reflect the internal and external business environment.

 [Business Ethics and Social Responsibility
11
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development
- Policies should be in writing and the language of the policies should be
intelligible to the persons who are supposed to implement them and to those
who are to be affected by them.

Kinds of Policies

Fig. 3 Kinds of Policies

Policies may be of different types. They can be classified on the following basis:

Originated Policies

These policies are formulated by manager. Managers tells employees how to act in a
given situation and the subordinates are expected to follow them strictly. They are
the basic policies and they have the support of organizational authorities.

Appealed Policy

If, on any matter, the employee is not clear and the a doubt about his authority to
handle a situation and if that subject matter is not already covered by the existing
policies, he may refer the matter for his superior's judgment. Superior's judgment
makes appealed policy and becomes a guide for the future action of the
subordinates.

Course Module
External or Imposed Policy

Sometimes, outside agencies like government may also be influential in the

formulation of a policy by the business. For example, if the government imposes a
condition on the business to have a yearly drug test examination to all, then this will
be required to all business establishments.

Functional Policies

Policies which are formulated for various functional areas of management are
known as functional policies. Some examples of functional policies are: financial
policy, production policy, marketing policy and personnel policy.

Policies on the basis of levels

Policies formulated on this basis may be basic policies meant to be used by top
managers, general policies meant to be used normally by middle managers and
departmental policies meant to be used by the departmental managers.

EXAMPLES OF UNETHICAL PRACTICES IN A BUSINESS

Unethical behavior in business runs the range, from simple victimless crimes to
huge travesty that can hurt large numbers of people. Whether it is stealing a pen,
padding an expense report, lying to avoid a penalty or emitting toxic fumes into the
air, unethical behavior cannot be condoned by a company. A strict ethics policy is
the cornerstone for any business that wants to maintain a good reputation. here are
some common unethical behaviors in the workplace:

1. Misusing company time

When an employees' activity is outside its job description, duties and

responsibilities, it maybe misusing company time. This category includes knowing
that one of your co-workers is conducting personal business transaction, doing
personal errands or simple wasting working time.
 [Business Ethics and Social Responsibility
13
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development
2. Abusive behavior

Too many workplaces are filled with managers and supervisors who use their
position and power to mistreat or disrespect co-workers. This is very vital now a
days and situations as such must be given attention by the business' management
whether it involves racial discrimination, gender or ethnic origin.

3. Employee theft

There are so many records of employees stealing from their company. Theft at work
comes in a variety of forms, and oftentimes employees do not view it as unethical
behavior, believing no one gets hurt by the action.

Employees may take home office supplies, use business computers for personal
tasks, pad expense accounts and abuse sick time or allotted personal days. Unethical
behavior also includes having another employee punch a time card, or not punching
out for lunch hours or other unapproved time off. Though these may seem like
minor infractions, they eventually have an impact on the bottom line of the
company.

4. Lying to employees

The fastest way to lose the trust of your employees is to lie to them, yet employers
do it all the time. One of out every five employees report that their manager or
supervisor has lied to them within the past year.

5. Violating company internet policies

Cyber slackers and cyber loafers are terms used to identify people who surf the Web
when they should be working. It's a huge, multi-billion-dollar problem for
companies. A survey conducted recently by Salary.com found that everyday at least
64 percent of employees visit websites that have nothing to do with their work. Who
would have thought that checking your Facebook page is becoming an ethical issue?

6. Bending the Rules

Bending the rules in a business situation is often the result of a psychological

stimulus. If an employee is asked to perform an unethical task by a supervisor or
Course Module
manager, he may do it because his allegiance to authority is greater than his need to
abide by the rules. Turning the other way to avoid trouble for another employee is
still unethical, even though the motivation may be empathetic. For example,
knowing that a coworker is having issues outside work justifies watching him leave
early each day without reporting it. Withholding information that can change an
outcome also falls under the umbrella of unethical behavior, even if the perpetrator
believes he is doing what is in the best interest of the business.

7. Environmental

Unethical behavior by companies, such as releasing pollutants into the air, can affect
cities, towns, waterways and masses of people. Though accidents can occur, the
release of harmful toxins into the environment due to lax safety standards, improper
maintenance of equipment or other preventable reasons is unethical. If a business
willingly continues production of a product knowing inherent environmental risks
exist, it can certainly be categorized as unethical behavior.

8. Wages and Working Conditions

Other unethical practices include not paying workers a fair wage, employing
children under the legal working age and unsafe or unsanitary working conditions.
Any practices that are not in compliance with fair labor standards and federal
working guidelines fall into this category.
 [Business Ethics and Social Responsibility
15
The Role of Business in Social and Economic Development
The Role of Business in Social and Economic Development

Glossary

E-mail: messages distributed by electronic means from one computer user to one or
more recipients via a network.
Professionalism: the competence or skill expected of a professional.
Job Description: a formal account of an employee's responsibilities.
unethical: not morally correct.

References and Supplementary Materials

Book

William H. Shaw, Vincent Barry; 2013Moral Issues in Business 12th Edition; Cengage

Online Supplementary Reading Materials

Protocol and Decorum; http://www.businessethics.net/P/protocol_and%20decorum
.htm; December 2009l May 18, 2017

Where proper decorum is essential; http://blog.aicpa.org/2014/07/5-scenarios-where-

proper-workplace-decorum-is-essential.html; July 2014; May 19, 2017

Maintaining Decorum In Business Situations; https://blogs.longwood.edu/ eng

l400scerbo/2015/03/13/maintaining-decorum-in-business-situations/;March 2015;
may 19, 2017

Online Instructional Videos

Office Etiquette: Miss Manners Minds Your Business; https://www.youtube.com/
watch?v=zxUFJXDIf5o; 2013; May 20, 2017
05 Etiquette Rules for Business Meetings for every professionals; https://
www.youtube.com/watch?v=ieYuoQ9sMvA; 2014; May 20, 2017

Course Module