ANY professional organisation worth its salt should have prescribed rules governing the conduct and integrity of its membership if it is to survive and function efficiently and with the required stability for advancing its ideals.
Experience has shown that organisations, whether they are political, social or business in nature, which are not governed by high moral and ethical standards do not function with a great degree of success and in many cases they actually collapse or become dormant.
This is logical because such organisations eventually lose respect and credibility from the wider society and simultaneously are characterised by internal wrangling and squabbles.
It is therefore encouraging that the Georgetown Chamber of Commerce and Industry (GCCI) has introduced a code of conduct with about 25 businesses signing on to it.
GCCI President, Mr. Komal Ramnauth, said the covenant was developed as a guideline for its membership on the basis of the ideals of ethical principles and standards, in accordance with the laws of Guyana and the by laws of the organisation.
He said it is also based on firm business ethics and incorporates social and corporate responsibility, particularly in relation to the environment and strives to inculcate the ideals and provide a framework to guide members on fair and ethical practices in their enterprise.
This is indeed a forward step and a progressive landmark for the local business community and will certainly help to ensure that even as businesses compete with one another they would do so within the ‘rules of the game’.
It would be hoped that all those businesses that have not yet signed on to the code would eventually do so and other organisations which do not yet have such a code would move towards implementing one.
Henry Posters, in an article ‘Importance of Ethics in Business’, points out: “Recent events in corporate America have demonstrated the destructive effects that occur when the leadership of a company does not behave ethically. One might wonder why highly educated, successful, and business savvy corporate professionals at Enron, Tyco, WorldCom, and Adelphia got themselves into such a big mess. The answer lies in a profound lack of ethics.
“Running a business ethically is good for business. However, ‘business ethics’, if properly interpreted, means the standards of conduct of individual business people, not necessarily the standards of business as a whole.
“Business leaders are expected to run their business as profitably as they can. A successful and profitable business in itself can be a tremendous contributor toward the common good of society. But if business leaders or department managers spend their time worrying about ‘doing good’ for society, they will divert attention from their real objective which is profitability and running an efficient and effective organisation.
“Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers, it usually is awarded with a high degree of loyalty, honesty, quality and productivity.
For example, employees who are treated ethically will more likely behave ethically themselves in dealing with customers and business associates. A supplier who refuses to exploit its advantage during a seller’s market retains the loyalty and continued business of its customers when conditions change to those of a buyer’s market.
A company that refuses to discriminate against older or handicapped employees often discovers that they are fiercely loyal, hard working and productive.
“It is my firm belief that a ‘good man or woman’ who steadfastly tries to be ethical (i.e. to do the ‘right thing’, to make appropriate ethical decisions, etc.) somehow always overtakes his immoral or amoral counterpart in the long run.
A plausible explanation of this view on ethical behaviour is that when individuals operate with a sense of confidence regarding the ethical soundness of their position, their mind and energies are freed for maximum productivity and creativity. On the other hand, when practicing unethical behaviour, the individual finds it necessary to engage in exhausting subterfuge, resulting in diminished effectiveness and reduced success.”
The GCCI must be commended for setting a worthwhile trend.