The small business owner is in a unique position to set the ethical tone for the business.
Employees will follow the lead of the owner when executing their duties and tending to their
responsibilities, so it is critical that the owner establish an ethical work
environment. Establishing an ethics policy (code of conduct or code of ethics) is an important
step in creating that environment. Employees who work in companies with active ethics
programs; who observe leaders modeling ethical behavior; and who see honesty, respect, and
trust applied frequently in the workplace have reported more positive experiences that include
• Less pressure on employees to compromise ethics standards
• Less observed misconduct at work
• Greater willingness to report misconduct
• Greater satisfaction with their organization’s response to misconduct they report
• Greater overall satisfaction with their organizations
• Greater likelihood of “feeling valued” by their organizations
These positive work experiences would be even more notable in small businesses because of the
smaller number of employees.
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