Business Ethics is a set of principles and moral conduct applicable in a business.  This includes dealing with customers and employees.  Most large companies, non-profit organizations, Boards of corporations and schools, etc. have a written Code of Ethics that is a guideline for their operations.  It applies to all aspects of business conduct and is required for all employees.  It sets out the standards of the individual’s and company’s moral judgements about right and wrong.

It can be viewed as a form of internal legislation.  These codes contain sanctions and obligations as well as consequences for violators.

Confidentiality and privacy issues are much more prevalent than in previous days because of disclosures of information that can be harmful to the company’s business.  There are federal and state laws in place to prohibit discrimination, harassment, mistreatment, etc. and reference to these regulations are often also included in the Code of Ethics.

When an employee is confronted with difficult situations, the person is expected to choose the right course of action.  The consideration of the company’s standards, Code of Ethics or Code of Conduct, is expected of all employees, regardless of level.  Ethical leadership from the top is necessary as well as a comprehensive  plan to protect stakeholders.  Purpose is to protect against financial and reputational harm as well as ensure good governance and compliance with regulations.  An effective monitoring process is necessary along with a confidential process of reporting.

Some of the standard agreements address or contain the following:

• Conflict of interests in dealing with company business and with customers.

• Outside employment that may be deemed as a conflict.

• Misuse of company/organization assets.

• Buying or selling property or other assets on a personal basis to the company.

• Accepting gifts from customers, vendors, clients.

• Buying or selling arrangements with customers/clients.

•  Being a “silent” partner with a customer, vendor, or other provider of services

• Non-disclosure of confidential information.

• Insider activities, such as buying or selling based on insider information.

• Proprietary information not being shared except on a “need to know” basis.

• Processing your own business transactions with the company for whom you are an employee.

• Discrimination or harassment of employees or customers.

• Use of company pc’s, vehicles, and other equipment for personal use.

• Being under the influence of drugs or alcohol while on the job.

The above is not an exhaustive list and the code of conduct/ethics may contain specific requirements customized to the kind of business.

Technical skills are not all that is necessary to be successful in a job.   If you desire to be successful in your job and be a valuable, contributing part of an organization, good character and behavior is necessary and must come first in all situations.

Becky Vaughn-Furlow retired from Trustmark Bank as executive vice president and human resources director. She can be contacted by emailing bvaughnfurlow@gmail.com.