Does everybody in your company know the company’s core values?

On May 26, I wrote on ‘What’s going on around us?’

Let me add one more news release:

Indonesia: Banking secrecy a ‘thing of the past’

May 22, 2017 07:30 pm

With a stroke of a pen, President Joko Widodo effectively ended banking secrecy in Indonesia by issuing a decree last Tuesday (May 16 2017) to grant more powers to the taxman.

The move means all banks, insurance firms and financial institutions must open their books to both the local and foreign tax authorities when ordered to do so for tax collection purposes.

Starting from April next year, they must also automatically report the identity of any client who deposits more than 500 million rupiah (S$52,000).

We have been discussing this in the Philippines for many years.  It hasn’t happened and – in my view – is unlikely to happen, for obvious reasons.

Today, I would like to ask a few questions to companies that have signed the Integrity Pledge or are about to sign up for ethical business behavior, about core values:

1. Top management actively promotes and enforces the culture of integrity in the company – Has the CEO issued a statement along these lines in the last 12 months? Can the average employee articulate and explain the company’s core values?

2. The company has a mechanism to ensure that emerging integrity risks related to unethical conduct are identified and addressed through an action plan explaining ways to mitigate and address the risks – Has the risk management office, or its equivalent, developed formally articulated plans and strategies to mitigate, transfer, manage or avoid integrity risks?

3. Top management has a process for reviewing compliance – Has a compliance / integrity officer been identified who has a clear mandate and articulated deliverables?

4. The company has clear levels of authority when dealing with cases of unethical conduct – Is a designated officer or person empowered to investigate and decide on cases of unethical conduct and impose or recommend penalties for violations?

5. Managers and supervisors are constantly updated on the global best practices on business ethics – Are your managers and supervisors required to attend regular training on business ethics, ethical decision making and similar topics?

6. The company has programs that engage employees and strengthen their values (e.g. participation in ‘Integrity Circles) –Is personnel at any level free to discuss and raise issues on integrity and ethics with their peers, supervisors and subordinates? Are they encouraged to voluntarily engage in activities that are oriented towards value formation and integrity?

7. Sales and marketing employees (or counterparts) have been given clear instructions to act honestly and fairly at all times – Do you have written instructions to sales and marketing employees to refuse requests for bribes and unwarranted incentives for customers?

8. The company has clear written policy and procedures on bidding, negotiations, supplier selection and performance evaluation – Do you have checks and balances instituted with respect to materials specifications and do you seek feedback from suppliers and bidders?

Don’t get scared. I am only describing the difference between lip service on integrity and practicing ethical behavior throughout the organization. As I have mentioned before, companies involved in international trade in products and services are watched locally and internationally regarding their business behavior. And this requires that ethical behavior is practiced throughout the organization. I welcome comments and questions – contact me at [email protected].