How does this article contribute to contemporary thinking about business ethics?

Ethics Draw Customers BE HONEST AND DEPENDABLE; TAKE RESPONSIBILITY: Otherwise, Nos 1-9 won’t matter. Watkins, Steve . Investor’s Business Daily ; Los Angeles [Los Angeles]25 Sep 2015: A03.

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ABSTRACT

Customers want to buy from companies that they trust. Employees want to work for those firms, too. That’s why

trust is so vital to operate ethically. Tips: Make rules. Set boundaries for receiving gifts, being entertained by

suppliers and reporting expenses, says Bob Buck, chairman of Beacon Roofing Supply (BECN). You’ll set the

framework for the type of behavior that you expect. Hire for it. Make integrity the priority when you hire. Sure, FULL TEXT

Non-USASCII text has been omitted.

Customers want to buy from companies that they trust. Employees want to work for those firms, too. That’s why

trust is so vital to operate ethically. Tips:

[bullet] Make rules. Set boundaries for receiving gifts, being entertained by suppliers and reporting expenses, says

Bob Buck, chairman of Beacon Roofing Supply ([STOCK[NASDAQ:BECN]]). You’ll set the framework for the type of

behavior that you expect.

[bullet] Hire for it. Make integrity the priority when you hire.

Sure, skills are important. But a strong performer who puts the firm’s reputation at risk will be a liability. Bring in

people you feel are honest, and promote only those you can trust. “Good and ethical people attract more good and

ethical people,” said Buck, author of “Well Built: Inspiring Stories from the Boardroom to the Frontline.”

[bullet] Show it. Execs often say that the company won’t cross an ethical line. But the key is how they act when a

tough choice arrives. Stick to your guns even if it means losing a sale to a company that wants a kickback. Your

people notice. “They hear what you do, not what you say,” said Marianne Jennings, professor emeritus of business

ethics at Arizona State University.

[bullet] Walk around. Talk to people in your company rather than sitting in the corner office. Jennings says that this

personal touch will keep you abreast of potential problems before they occur. “It makes you more accessible, too.”

[bullet] Set the tone. When Buck was Beacon’s CEO, he wrote weekly updates to employees, frequently discussing

how the firm should operate ethically. It showed his people how important ethics were in his eyes. “People felt they

got to know me,” he told IBD. “It does break down barriers.”

[bullet] Show what you want. Recognize people who make the right choice. If an employee finds money on a job

site and turns it in, tell the whole company about it.

“Make heroes of the people who behave ethically,” Buck said.

[bullet] Adjust incentives. Pay employees based on performance over a long span, like three years, rather than on

yearly or quarterly results, Jennings says. You’ll reduce the temptation to change a depreciation schedule or toy

with reserves to make a financial target.

“People see those things, and it introduces an element of hypocrisy,” Jennings said. “If people understand there’s a

longer time frame, they’ll make better decisions.”

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[bullet] Set up consequences. Stick to your rules. Live by the punishments you’ve put in place, whether they’re for

the lowest-level employee or a group vice president. Jennings knows of one company that fired a sales person

whose ethical breach involving foreign corruption got the company in trouble. Then it quickly hired the guy back.

That doesn’t work. “You have to enforce what you’re saying,” she said.

[bullet] Reinforce. Buck made Beacon’s most coveted award based on character and integrity. “That really made

ethics more important than sales or profits,” he said.

[bullet] Look ahead. You can handle most sticky situations by knowing in advance how to deal with them, Jennings

says. If you sell overseas in developing markets, set up a no-bribery policy and make it clear to your people in those

countries how to handle such situations.

“Anticipate the types of things that could happen,” Jennings said.

[bullet] Make the hard choice. Go with your principles even if it’s costly in the short term.

If a sales rep falsely pads monthly numbers, dole out the same punishment, whether he’s your best sales person or

your worst.

“Stick to the policy,” Buck said. “Sometimes you have to take the hard right.” DETAILS

Subject: Ethics; Chief executive officers; Sales; Employees

Publication title: Investor’s Business Daily; Los Angeles

First page: A03

Publication year: 2015

Publication date: Sep 25, 2015

column: IBD’S 10 SECRETS TO SUCCESS

Section: Management

Publisher: Investor’s Business Daily, Inc.

Place of publication: Los Angeles

Country of publication: United States, Los Angeles

Publication subject: Business And Economics–Investments

ISSN: 10612890

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1716082296

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Copyright: Copyright 2015 Investor’s Business Daily, Inc

Last updated: 2015-09-24

Database: ABI/INFORM Collection

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Ethics Draw Customers BE HONEST AND DEPENDABLE; TAKE RESPONSIBILITY: Otherwise, Nos 1-9 won’t matter.