bfbm(9-2016) business ethics & business value

Business Ethics

ResponsibilityTrust

Behavior

Principle

RelationshipChoice

Reliability

Morality

3 E

Economical Responsibility

EthicalResponsibility

EcologicalResponsibility

Business Ethics and Social ResponsibilityBusiness Ethics:The principles and standards that define acceptable conduct in business

Social Responsibility:A business’s obligation to maximize its positive impact and minimize its

negative impact on society

Ethical Issue Categories1. Conflict of interest

2. Fairness and honesty

3. Communications

4. Business relationships

Three Factors That Influence Business Ethics

Individual Standards and Values

Managers’ and Coworkers’ Influence

Opportunity: Codes and

Compliance Requirements

Ethical/Unethical Choices in Business

Factors Influencing Managerial Ethics

Values Work

Background Family Status Personality

Individual Top Level

Management Philosophy

The Firm’s Reward System

JOB Dimensions

Organizational

Competition Economic

Conditions Social / Cultural

Institutions

Environmental

The Pyramid Of Social Responsibility

Voluntary ResponsibilityBeing a “good

corporate citizen.” contributing to the

community and quality of life

Ethical ResponsibilitiesBeing ethical; doing what is right, just,

and fair, avoiding harm

Legal ResponsibilitiesObeying the law (society’s codification

of right and wrong)

Economic ResponsibilitiesBeing profitable

Philanthropic Responsibilities

Ethical Responsibilities

Legal Responsibilities

Economic Responsibilities

Be A Good Corporate Citizen

Be Ethical

Obey The Law

Be Profitable

Contribute Resources To The Community; Improve Quality Of Life.

Obligation To Do What Is Right, Just And Fair. Avoid Harm.

Law Is Society’s Codification Of Right And Wrong. Play By The Rules Of The Game.

The Foundation On Which All Other Rest.

Ethics In Workplace

Work Ethics Is An Invisible Employee Behavior, Noticeable By Its Absence.

In The Work Place The Senior Management Have A Responsibility To Set An Example That Reflect The Company

Expectations.

Ethics is Two – way!

Employees, having strong ethics in personal

and professional life, need no explanation,

unlike those employees for whom work ethics is

a growing problem.

By The Time Employees Hit The Workforce, Can They

Be Taught Things Like Ethics – Or Is It Too Late?

Training On Workplace Ethics Is Imperative.

Ethics Help A Lot In Effective Productivity As Well As A Great Balance

Of Responsibilities In Your Life On Personal &

Professional Front.

Good Behavior Should Be Acknowledged.

Clearly, Consistently, And Frequently Communicate The Desired Behaviors And Why They Are Important To The

Organization. Model These Behaviors As A Leader

Ethics Depends On Situation.In Spite Of Training Sessions On

Ethics, Enforcement Is Ultimately Left To The Individual.

And Finally, It Is Essential To Communicate Ethical Values To Employees As

You Are Giving Them The Authority To Take

Appropriate Ethical Decision In Any Given

Situations.

Ethics Is Knowing The Difference Between What You Have A Right To Do And What Is Right To Do.Potter Stewart

Integration View of Ethics

Government

Market Systems

Law

Society

Business Ethics

Business Morality & Ethics

Forces That Shape Business Ethics

Is the Decision or

Behavior Ethically and

Socially Responsible?

Personal Ethics

Beliefs and ValuesMoral DevelopmentEthical Framework

Organizational Culture

FounderHistoryDefining Moments

Organizational Systems

StructurePolicies and RulesCode of EthicsReward SystemSelection and Training

External Stakeholders

Government RegulationsCustomers/ClientsSpecial Interest GroupsMarket Forces

7 Principles of Admirable Business Ethics1. Be Trustful2. Keep An Open Mind3. Meet Obligations4. Have Obligations5. Become Community Involved6. Maintain Accounting Control7. Be Respectful

Building Ethical Safeguard Into CompanyHow to control unethical issues or conduct in organization or promote ethical behaviour:1. Top Management Commitment and Involvement2. Ethics Policies or Codes3. Ethics Officers, or Compliance Officer4. Ethics Audit5. Whistle Blowing Policies6. Corporate Ethics Awards

Highly Effective PeopleYour Character and Personality Ethic

Your Personality

Your Character

Positive Mental Thinking People Skills Win-Win Mindset

Beliefs & Values Effective Living The Golden Rule

YOUR PERSONALITYYour secondary greatness

YOUR CHARACTERYour primary greatness

Business

Values

Integrity Effort Partnerships Passion

HonestyObjectivityAccountability

PerformanceFocusResults

ResponsivenessCollaborationSupport

AmbitionInspirationCreativity

PeopleStaff with Specialized Experience

PlatformsFlexible BusinessArchitecture

ProcessesAdaptable SupportingTechnology

Business Value

How to build a BUSINESS FOR VALUE

So what drivesVALUE

in a business?

There Are Eight Key Drivers To

Your Company’s

Value:

1. Financial Performance

2. Growth Potential

3. The Structure

4. Valuation See-Saw

5. Recurring Revenue

6. Monopoly Control

7. Customer Satisfaction

8. Hub & Spoke

Growth

Start Up

Adolescence

MaturitySuccessio

n & Decline

Life Cycle of a Business

Growth Adolescence Maturity Succession & Decline

Structure Management Style Culture Profit/Cash

Focus Challenges Risks

Life Cycle of a Business

Growth

Start Up

Adolescence

MaturitySuccession & Decline

Lifecycle

Maturity- The Company We Dreamed Of!Where owners can step away for a period of time and the company will perform as well or better than if they were there!

MaturityClear Vision and Strategy

Empowered Teams

SOPs

Key Metrics

Growth

Start Up

Adolescence

Maturity

Succession &

Decline

Lifecycle

$

Building Value in Your Business

Become a Different Kind of Leader

Develop a Winning Team

Develop A Standard Production System

PhilosophyStrategySystems

Processes – ProceduresTools

Metrics

Peop

lePeople

Philosophy

Strategy

Systems

Processes - ProceduresTools

Metrics

Right People Right Seat Cost Based Estimating Sales Drives the Business Systems Based (SOP’s) Keep

Score

Vision Based Strategic Plans drive all operational decisions and charts course for business

Good System produce predictable outcomes. Sales, Product Delivery, Administration

Good System are composed of (SOP’s) that allow ordinary people to perform at extraordinary levels

Pro-Build Est. Template, MPSS Maintenance Est., Enhancement Est. Labor Tracking

Facilitate systems and processes, collect and track

data, create reports

KPIs for Sales, Production, Financial, Customer Sat, Safely

Right People/ Right Seat

General Manager

Account M

gr

SalesDesig

n

Operations

Accounting Admin

GOOD PEOPLE

Your Company’s Greatest Asset

The value of value! Maximizing the value of your business!!!

“How Do I Create Value In My Business?” Focus on the long-term value of institutionalizing your

organization and creating contractual or tribal

relationships with customers and staff.

Individualized business = me style = weak strategy = low value Institutionalized business = we style = strong strategy = high value

Four contracts:

1. Physical

2. Emotional

3. Intellectual

4. Spiritual

BUSINESS ETHICSAssociation

Books

Self Concept

Making the shift requires hard work, management transparency and commitment to creating true long term value!

Thank You