THE BUSINESS ETHICS PROGRAM

An RBE is characterized by responsible business conduct at all four levels of
its identity4 as an enterprise:
1. Compliance with the law
2. Risk management
3. Reputation enhancement
4. Value added to the community
Responsible business conduct includes the choices and actions of owners,
managers, employees, and agents that are (a) within their authority, (b)
well informed, (c) intended to pursue the enterprise purpose and meet reasonable
stakeholder expectations, and (d) sustainable over time. Responsible
business conduct allows an enterprise to improve its business performance,
make profits, and contribute to the economic progress of its community.
Among the lessons learned by both business and government is that
responsible business conduct can be encouraged by the structures and systems,
procedures, and practices of responsible business conduct, often called
good corporate governance or best practices. Moreover, many businesses now
account for the impact they have on all their stakeholders, including their
social impact—how they deal with employees, suppliers, and the community—
and their environmental impact—how they treat the environment.5
A management tool owners and managers use to encourage responsible
business conduct is commonly called a business ethics program. A business
ethics program also helps owners and managers address the triple bottom line:
the financial, social, and environmental results or impacts of the business’s
operations (see Box 1.2).
Business owners and managers have learned that a business ethics program
helps owners and managers improve their business performance, make
profits, and contribute to economic progress by better
• Recognizing political, economic, social, and technological pressures
• Understanding organizational culture: core beliefs, participation,
responsibility, knowledge sharing, and methods of dealing with conflict
• Fostering reasonable stakeholder expectations
• Developing responsible management practices to meet stakeholder
expectations
• Learning from enterprise decisions and activities