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Georgian Business Code of Conduct Orientation


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#1 Tariel Zivzivadze

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დაწერილია 01 December, 2003 - 10:25

Based on the information provided on this board and your private experience, what should be the orientation of the GBCC? Whay should the business accept this and rely on it?
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#2 Amy Denman

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დაწერილია 02 December, 2003 - 15:34

In my experience, a code of conduct should serve as an inspiration for the employees and management of a business. Current and future employees should feel honored to abide by the code of conduct or ethics. The orientation should be less as a "rules and regulations" and more as an inspirational tool.

For example, the employees of BP, Marriott and Sheraton, are in general proud to be working there. These are all companies who have a stong code of ethics/conduct that all employees are fully aware of.

#3 Tariel Zivzivadze

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დაწერილია 02 December, 2003 - 16:07

Amy Denman
"The orientation should be less as a "rules and regulations" and more as an inspirational tool."

Agree. The final document should be inspirational. My point here would be the following: There are many forms in inspirations and the goals of the inspirations may differ.

How the GBCC will inspire the businesses and for what reason?
The options:
1. To care about the society
2. Care only about their profit
3. To care about trust

or what else?
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#4 Maia Tsereteli

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დაწერილია 03 December, 2003 - 10:24

Georgian Businesses should see the advantages of implementing the Code of Ethics. Our primary role will be clearl definition of advantages of implementing the code. Georgian businesses should see it as a great tool for:

1. Creating the pride and confidence among their associates
2. Improving financial and bussiness objectives
3. Feeling the pulse within their companies

and many other insipartional aspects that will, in general, make their business more successful...
Maia Tsereteli
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Courtyard by Marriott Tbilisi
Tel.: 77-91-20
Fax: 77-91-40
E-mail:maia.tsereteli@courtyard.com

#5 Amy Denman

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დაწერილია 03 December, 2003 - 14:57

ციტატა

and many other insipartional aspects that will, in general, make their business more successful...


Managers will see it as a tool to make their business more successful. Otherwise why would they bother?

. . . employees should feel that it creates pride and confidence among their associates. Excellent. And to remind the employees of their promise to uphold the code of ethics there should be suggestions (in the form of an appendix) that companies can refer to. For example "a Gold Star Award" for the employee who is see as working best within the code of ethics - or demonstrating outstanding "ethical" behavior. A monetary bonus or an awards ceremony should be given once or twice a year.

#6 Tamara Bokuchava

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დაწერილია 08 December, 2003 - 11:03

I think simply being ethical will make as person as well as business more successful, where all parties (shareholders, customers and employees) are happy. Otherwise it is impossible. Don't you think???

Dilemma is to urge Georgian business people to understand and feel the importance of the above mentioned.

#7 Tariel Zivzivadze

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დაწერილია 08 December, 2003 - 21:58

Dear Tamara Bokuchava

Please tell us what do you mean by saying

ციტატა

simply being ethical
?

If I were saying the same I would mean at least the following: The employees of the business make the informed decisions and share the same purpose.

That is the decisions are based on the judgement not on the morale in the business structure and the staff is geared to the success of their business.

From this point the orientation of the code needs to be somehow related to the education of the business staff, is order to teach them how to make the informed decisions (in any field related to business) and share the same goals, that is to understand the strategy and the goals of the business they work in and know their rople in the whole system.

This was just my point of view.


ციტატა

Dilemma is to urge Georgian business people to understand and feel the importance of the above mentioned.

Completely agree. How can we do that? Do we need a trouble (skandal)?
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#8 Dear Guest, You need to register...George Kukulava_*

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დაწერილია 09 December, 2003 - 10:39

A general purpose of having businesses with business codes is to have a predictable future meaning that members of the companies and of the society should be able to guide their actions in accordance with clear expectations.
Now, to get more down-to-earth, I have some specific suggestions that a business code should regulate:

1. There should be a job description for each position in a company, with a clear stipulation of powers and obligations of a given employee. Management should know what exactly to expect from a particular company member and vice versa.

2. A company, whether small or large, must allocated time and energy for rewards and punishments. There is no need for precious rewards and punishment shall not mean dismissal every other minute; rather, the employees must feel that if they do their job well, they will be appraised and vice versa.

3. A company may think of distributing a weekly or monthly newsletter. If weekly, the newsletter should be as concise as possible, 1 or 1/2 pages. If weekly, it may be a little longer, say, 2-3 pages. Along with other issues, the newsletter's purpose is to convey messages on ethics issues to the employees using sufficiently polite and diplomatic language.

Thanks for your time,

George

#9 Dear Guest, You need to register...avto svanidze_*

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დაწერილია 10 December, 2003 - 13:54

I think one of the most important aspects of the code should be the relationship with the employees of the company. It is not a secret, that the labor laws are not really protected in most Georgian companies, so we should emphasise the importance of employee rights and the responsibilities of the companies towards theor own staff members.

#10 Tariel Zivzivadze

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დაწერილია 10 December, 2003 - 18:21

avto svanidze
Welcome to the conference first.
Do you have the labor code in E format? That is interesting for me as there may be some ideas there which we may use in GBCC
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#11 Dear Guest, You need to register...Irena Luchko_*

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დაწერილია 14 December, 2003 - 15:44

I believe the main orientation of the Code is to promote organizational culture. Someone in this conference already mentioned that in Georgia organizational ethics have no chance competing with the unwritten rules of family or friendship ethics or with the current individualistic idea of prestige. When these end up on the scales of choice, the more established values of social behavior outbalance. The Code is the first step to giving a bigger weight to values of organizational culture.

I agree with Amy that the Code whould rather be an inspirational tool; it should promote pride for the company; its implementation should be about incentives, not punishment. The Code of Ethics should not be turned into Company Criminal Code, but rather like Avto wrote above it should give the employees the feeling of being protected. However it should be concrete on what incentives it has to offer: "To care about society" or "To care about trust" as an idea is too broad. I guess it is more important to give employees a feeling that their personal success within the company accounts for the success of the whole company, that what each of them do matters greatly. Thus the Code should be closely associated with promotional schemes like performance and dedication awards, the promotions and salary raises that are already in place need be publicised among employees as awards for excellent performance, etc. The details will be company specific and will vary by company, but the idea of "company family" and that of incentives must be a red line in the Model Code. (IMHO :)

#12 Tariel Zivzivadze

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დაწერილია 14 December, 2003 - 17:07

Interesting
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#13 Dear Guest, You need to register...Igor Abramov_*

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დაწერილია 19 December, 2003 - 19:43

[Response from Igor Abramov and Elizabeth Ramborger, US Dept. of Commerce]

We'd like to respond to a question posed earlier under this topic, i.e. whether a scandal is necessary to provoke people to understand and appreciate the importance of business ethics. George Kukulava makes an important point--one of the reasons to have a code of conduct is to creat a predictable business environment. That is, to prevent crisis.

While a scandal does focus public interest on the need for business ethics and good corporate governance (as evidenced in the US), by the time a scandal occurs a great deal of damage has already been done. For example, the Enron case had far reaching economic and social consequences (see below facts). Scandals have broader and deeper implications for society and the economy, which seem to outweigh the positive public awareness they encourage. The goal of business ethics, and codes of conduct, is to recognize and prevent problems before they occur. Business ethics guides business decision-making, and is a proactive management tool to prevent problems in the workplace and to make enterprises more successful in the long-term.

Some consequences of the Enron case:
--Pension funds across the U. S. were drastically eroded by Enron’s collapse (Kansas Public Employees Retirement System and KPERS fund).
--Energy companies that traded with Enron posted big losses (Duke $100 mil., Mirant $80 mil., and Dynegy $75 mil.).
--Banks and other lenders across the US were affected by Enron’s default on loans (J.P. Morgan $500 mil and Citigroup $495 million).
--Thousands of Enron employees were laid off and lost all of their benefits.
--Energy markets in countries ranging from Brazil to Britain have been disrupted in supplies.
--World prices may rise sharply due to Enron’s many long-term international agreements.
--Charitable organization PGE-Enron Foundation which seeks to build community strength affected.



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