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 BUSINESS ETHICS GUIDELINES AND RESOURCES

Home > Know What Cannot Be Compromised

Every business owner knows that there are some aspects of work that are discretionary and other aspects with procedures that must be followed exactly. Do your people know what these discretionary and non-discretionary areas are?

Discretionary areas of business are those situations where you and your employees have room to maneuver, compromise, bargain and make deals within established boundaries.

These boundaries are the non-discretionary aspects of a business.

Non-discretionary areas are topics or situations with very specific rules, regulations or other guidance that requires one - and only one - way of acting. Compromise is unacceptable in these areas.

Safety is one non-discretionary area that is immediately recognizable. There are certain safety procedures that MUST be followed or there is danger to workers. However, there are other areas where your employees may not have quite as clear an understanding of what is ethically correct.

To act ethically, it is vitally important that you, as a business owner - and your employees - understand what actions fall into which of these two areas - discretionary or non-discretionary.

Often different organizations and businesses provide different guidelines on operational latitude. These differences may be due to the responsibilities that employees have in performing their jobs. Or, the job requirements permit only a certain procedure.

Universal Norms

However, there are several universal areas where zero tolerance for violations is appropriate for all organizations. These universally accepted norms include:

• Laws and regulations.
• Public and employee safety.
• Truthfulness of records and statements.

Company Specific Standards

Businesses may add to this list with specific policies and procedures that they wish to enforce for the performance of the company or to differentiate the company from competitors.

Both, the universal norms for ethical action and the specific policies and procedures that a company adopts as standards, are areas where ethics cannot be compromised. As a business owner, you must set the example and ensure your employees know these ethical boundaries.

This information is compiled and provided by George S. May International Company.
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