More multinational companies are reporting on the progress of their responsible sourcing programs. A look at their data over a few years reveals mixed results.

Since 2004, Gap has been reporting on its responsible sourcing efforts, including specific data on factory monitoring. Following Gap’s lead, Wal-Mart, Ikea, Reebok, Nike and others have begun to disclose monitoring statistics as well. These numbers typically indicate the percentage of suppliers by region that are compliant, with anywhere from ten to 100 compliance indicators.

To get a quick idea of what the abundant data shows, we can look at a few key indicators related to child labour, wages, work hours and worker treatment from suppliers based in Asia.

The Gap reports indicate that there were improvements in supplier compliance related to age documentation, voluntary overtime and worker treatment, over a three-year period from 2003 to 2005. For Wal-Mart, the findings in these areas were nearly the opposite. Wal-Mart saw an increase in violations over 2004-05.  For both Gap and Wal-Mart, the data showed no visible changes in wages and work hours indicators over the multi-year period. Ikea, which classifies its findings by much broader categories, saw no change in the area of wages and hours and an increase in the violations related to worker treatment in Asia from 2004 to 2006.

Important to understanding this apparent conundrum, Gap provides an excellent discussion of the limitations of monitoring data in its 2004 report. For example, Gap discusses how training monitors and improving detection skills may result in a related spike in findings in the subsequent year. In evaluating overall supply chain performance, it is important to consider these types of contributing factors that may skew data.

Even more important to understanding the data, consider that sourcing locations are constantly changing, for some product types more than others. Therefore, the variation in findings from year to year normally will not represent the same pool of suppliers, but rather the current suppliers for that year. Newer suppliers may have less experience with compliance and therefore demonstrate worse performance.

The data underscores the importance of a long-term relationship with the supplier when seeking sustained improvements in labor rights. For some product lines, this is much easier said than done.

Nike shows one way forward in its latest report, where different goals are set for the 20% of its supply base that is long term, representing 80% of Nike’s products. Nike is focusing on improving conditions with long-term partners, capitalizing on increased influence and opportunity for improvement over time.

Hopefully its future monitoring data will also set new standards. While the reporting of monitoring data has come a long way in a few short years, it still has a long way to go.

A boss is the head of an organization or department in a business. He or she as the case may be is the person in charge of effective functioning and responsible for instituting business plans. Donning the mantle of a great boss is a commitment for life. You need to reach out in every way.

The cornerstones to becoming a great leader who people look up to and admire are:

1. To be a visionary and abandon concentrating on nitty gritties to view the “big picture”. You must be able to plan and lead the company to a zenith never reached before. The company mission must include rounded goals, healthy profits, high ideals, and opportunities for employees to scale new heights along with the company. It gives employees a sense of belonging and purpose.

2. To applaud initiative and accept good ideas from employees giving them due credit. It is important for you to have a drive to take ideas to higher levels of implementation and not just file them away. Most successful companies are built on team effort with everyone contributing their mite. Acknowledge graciously contributions big and small made by employees.

3. Be qualified and competent. You need to have the talent and curiosity to know how each department functions and where they are right and where they need correction. Must know the art of reining in as well as giving a free run.

4. Have resilience. It is flexibility of mind and action that will allow you to adapt to situations without caving in. Triumphs and defeats are all a part of business and must be taken in stride. If you encounter a dead end have the courage to review matters and change direction without missing a single beat.

5. Interpersonal skills and the art of communication must be mastered. Work alongside your employees and lend a patient ear. Brainstorm with the employees you will be surprised to receive good and quick solutions to unsolvable problems. This does not mean you become a door mat. Lead the company with a firm yet kind hand.

6. Lead a team not a silent group lead by one person. Delegate responsibilities and ensure that they are fulfilled. Be a colleague and place your trust in those who have earned it. For the team to be effective you must recruit quality people. Allow and encourage independence of thought and action provided set goals are met.

7. Learn effective communication. For an organization to run on oiled wheels internal and external communications must be excellent. Honesty, fair play, and integrity are the keys. Promises made to customers and other business must always be kept and there should be no cloak and dagger practices.

8. Sharpen your instincts to a level that benefits you. Most business decisions are made on intuition that rises from experience and know how.

9. Be an effective leader. Motivate the workers and earn their admiration and respect. Decisions must be made timely and effectively. Action should be immediate with no delays or postponement.

10. Be a risk taker and overcome the fear or failure and doubts. Unless calculated risks are taken you will never be able to scale new heights. Learn from your mistakes and never shy from asking for advice.

A good leader is always an excellent mentor. He must not just know the working skills of his employees but some of their personal aspirations as well. A good boss goes beyond leading a business –he becomes a friend, philosopher, and guide not just to his employees but to the business community in general and his country and the whole world in particular.
By: Paul Wilson

Capitalism is the social, political, and economic system that lets rights to
property be transferred by market transactions among private individuals,
alone or in groups. Systems of thought that oppose capitalism oppose this
way of fixing legitimate property claims and substitute other criteria for the
legitimacy of property transfers, or prohibits such transfers altogether.

In either allowing or disallowing market transactions, capitalist and
non-capitalist systems either allow or disallow business. Business is a set of
organized human activities which take place in markets. So it is appropriate
to engage in a general consideration of the morality or immorality of
markets and of market institutions, in a business ethics text. Much of what
makes for good business or bad business is the suitability of business
practices to engage in market activity. But if market activities were
essentially bad, that badness would transfer back to the business activities.
On the other hand, if it is a good thing for humans to participate in
markets, then good business can be good human activity.

In any event, this chapter is a discussion of the morality of markets and
of market institutions. Since this is an introductory essay, I shall explain
everything that is taken up in the essay. So I start by explaining what
markets are and what morality is.

What is morality? The study of morality is an attempt to formulate
rational standards that can be used to distinguish between right and wrong
action and also between good and bad things. For example, most people
think that peace and prosperity are good things and should be pursued.

to be continued….

Business Ethics have only come to the fore recently. They state that there is more to business than just making a profit. The new focus is also on how the business treats the environment, reacts with the local community and works with its staff to build a responsible company that is both sustainable and adds value to the people that it interacts with.

“Greed is good” is no longer acceptable to most consumers. The consumer is now better educated with new means at his disposal. High speed internet access and forums like Ecademy now mean that good and bad news travels almost at the speed of thought. They are now demanding more from businesses even though their own ethics at times might be questionable!

Business ethics are now included in most business courses and the top management schools. The top graduates enter the corporate world ready to incorporate what they have learn in the classroom.

Businesses need to have specific programs in place to manage their staff and workplace in a responsible manner. They must give social welfare a high priority if they are to maintain their public image. They have to be seen to be recycling their waste and disposing of old equipment in an environmentally friendly way.

Businesses now have to be wary of using sweat shop labor in the third world especially if they treat them badly. Everybody realizes that third world country wages are lower but they expect Western companies to treat their employees with some respect and dignity. Businesses that employ children are now frowned upon even though child labor is the norm in these countries.

Many “watch dogs” now exist that “police” most large companies and report any blatant abuse of ethics. Most of these have only been set up in the last twenty years. Most large media organizations also have special reporters whose sole purpose is to identify where breaches are taking place and publicize them.

The top brands in the world need to be extremely careful now. The value of a brand might have taken decades to build but can be destroyed in a matter of weeks. An example of this is when Gerald Ratner made a speech to the Institute of Directors and in humor referred to a cheap necklace that “everyone knows is crap”. These comments served to wipe out over a half a billion dollars of the companies value and played a major part in the downfall of a once thriving jewelery retailer in the United Kingdom.

There are now funds that specialize in only investing in ethical businesses. They refuse to invest in companies that produce weapons or manufacture cigarettes as an example. These funds have taken of spectacularly and have billions of dollars to invest in the stock markets. Before they invest in a business they send their fund managers in to investigate the business fully to see if they comply with their guidelines. If the company is not willing to answer all their questions fully then they might not get approved for investment.

When properly managed and executed the use of business ethics can actually serve to enhance the profitability of the company concerned. The business can proudly declare their values in brochures, newspapers, internet and television marketing campaigns. Reputation is the strongest asset that a company has and maintaining this and the value of their brands is essential to the long term future of the business.
Article Source: http://www.articlerich.com

Perhaps no other issue can so dramatically define the difference between management and leadership, than the attention the individual gives to ethics.

A manager must focus on the on the day-to-day aspects of keeping the department, team or organization running smoothly. This includes making sure the department is staffed appropriately, that the company is on target for sales, that production is on target, etc. A leader, on the other hand, must be able to set goals and aspirations for the team, set the tone of the organization, motivate and inspire the group, etc. Realistically, managers must be able to do both. They must inspire and motivate and they must ensure that the company operates effectively. Setting the ethical tone of the organization is a leadership function. The challenge for most managers is to spend enough time focusing on leadership functions without becoming totally consumed by the day-to-day operations of the team. Because “business ethics are about the morally functional nature of our business relationships…giving them the attention and care they deserve is crucial to an organization’s success” (Hamm, 2003, p. 1). I suggest six steps for a manager to take to lead ethically.

1. Reflect on Values. To focus the appropriate attention on the ethical tone of the organization, a leader must “draw on their own fundamental values and capabilities” in order to optimize their leadership potential (Quinn, 2005, p. 76). To do this, leaders must find time to reflect and identify their own personal moral compass as well as to ask themselves what are the key ethical questions and dilemmas facing their organizations. Just as a manager must take time to understand their market, budgets, production timelines, etc., an ethical leader must take time to understand his/her own personal values, the values of the team, what the value statements of the organization should be and identify the gaps that exist in aspired goals and current behavior within the organization (Hamm, 2003, p. 3).

2. Establish Trust. Build an environment of trust with employees in order to create an environment where employees feel free to discuss ethical dilemmas and issue with management.

3. Establish a Shared Ethical Vision. To ensure buy-in and commitment from the organization, include members from various levels of the team to help create a “Code of Conduct” that is aligned with the Ethical Vision of the organization (p. 3).

4. Communicate the Ethical Vision and Code of Conduct. A leader must ensure that the vision and code is communicated to everyone within the organization. This can be done through policy manuals, training events, one-on-one and team coaching, newsletters, team meetings, etc… “Communicating the program frequently is another important success factor (p. 3), as is establishing a way for employees to communicate their concerns back to management in a safe and confidential manner.

5. Act. To be effective, the leader must show that all the organization is serious about ethical behavior. All reports of unethical behavior must be investigated thoroughly. Furthermore, all violators of ethical standards must be punished equally and justly throughout the organization, irregardless if the perpetrator is a senior executive or first line hire. In addition to punishing negative behavior, effort should be made to reward and recognize positive ethical behavior (Trevino and Nelson, 2005, p. 304). Just as a good manager knows that rewarding employees for reaching goals is important, the ethical leader will recognize that equal importance must be given to recognize those who exemplify ethical behavior within the organization. Acting also means leading by example by letting ethical behavior guide the actions of the leaders at all times. Doing so will help establish and sustain a culture of ethical behavior.

6. Monitor and Sustain Ethical Behavior. The leader must consider ethical leadership a key aspect of their role as a manager. It cannot be seen as a passing organizational fad. Effort must be made to gather feedback through surveys, focus groups, one-on-one interviews, etc., to identify employee concerns regarding the ethical environment where they work. This should be a continuous improvement process to identify concerns and to improve the overall ethical environment.

There are at least seven benefits for a manager to focus on being an ethical leader, including; improved public image of the organization, restoration or enhancement of investor confidence, prevention and reduction of criminal penalties, preventing civil lawsuits of employees who could not have their grievances met satisfactorily inside the company, improved employee retention, market leadership through by improved customer satisfaction and setting the example for others in the market

By Melvin Polatnick

Owning a twelve room house is very expensive, my cleaning lady and her sister who is my cook cost me fifteen hundred dollars a week for six days work. Health insurance is provided by me. Both are is well worth what I pay them. I like my clothes and linens washed daily by hand and my two cars washed and waxed. The washing machines destroy the quality of material so they are not used except by them. Both have been with me for over five years. we are all lovers but never on working hours.

My cook is three years younger than her sister, she is forty three years old. She once worked as a stripper but gave it up to work for me. The food shopping and kitchen cleanup is done by her. Breakfast is served at eight but lunch and dinner can be served at any time. I always like a late night snack and a dry martini. The sisters live with me and have their own rooms. I cannot sleep well with any one in my bed. When we make love it is in the large bedroom that my deceased parents used to share.

Sunday is my employees day off so we all go mall shopping followed by dinner and dancing. We never return home until the wee hours of the morning. Both sisters are usually dead drunk. I am the driver so I keep my self down to a martini or two. We are all up at eight A.M. to start the working day of with a hot breakfast. Life is good to us all and we are one happy bunch.

On a Sunday night when we were dinning and dancing I asked the sisters if they would like to retire and live with me in a residential hotel. The staff of the hotel would provide all the services needed including cooking and cleaning. They were delighted to hear such a kind offer but were frightened at the thought of losing their salaries. I explained that the salaries would continue and so would our relationship as friends and lovers. They agreed and I sold my house. We then all moved into a luxurious three bedroom suite.

My parents were business people and employed over one hundred workers. Before they died in an automobile accident they explained to me the importance of being fair to your employees. I never forgot their teachings. The sisters that live with me were my employees and if my parents were alive they would be proud of me.

Improving organizational culture has become a necessity in today’s ever-changing business environment. People want to work for a company where they can be happy and balance work and life. Organizations who treat their members well have experienced a better retention rate, an increased productivity and a happier overall culture.Improving organizational culture can be a big challenge for the organization and its members. Focusing on a few important steps will help you get started in improving organizational culture Getting the right training for your employees is the first step toward improving organizational culture. The other important steps for enhancing organizational culture include: Analyze your organization’s existing culture and compare it with customers’ expectations and perceptions.Form a diverse team of interested and enthusiastic people in an organization to enhance the organizational culture.Get your team to discuss the current culture and explain the parts of the culture that are already great and need to be supported. Then create a vision of the culture you want to create, taking into account the entire current picture of the organization.Provide the appropriate training to the team members regarding the vision of the culture. Communicate to everyone to bring awareness about the team and organizational leadership, that this isn’t a band-aid, quick fix; but an ongoing, strategic intention to build a more attractive culture that fits the needs of the organization and that can improve its culture. Get the cultural team excited. Help the team recognize that not everyone else in the organization is going to think that these efforts are worthwhile immediately. Remember that enthusiasm is contagious. Do what you can to keep the enthusiasm of your team high. If their excitement falters, remind them of the vision they created to re-invigorate them. Culture improvement is like any other change, as it requires champions. The champion needs to be someone who is passionate about creating the new culture.Any change will have a greater chance of success with momentum. Thus, get started but be committed to building momentum and staying with it. It will be one of the most rewarding efforts you and your team will ever engage in and with this you can bring great improvement in your organizational culture.The above-mentioned lists are the specific tips that have enhanced and improved the organizational culture of various organizations. Obviously, these are not the only things you can do to enhance your culture , but these will provide you with a good starting point.