The possibility and need of business ethics codes in small and medium-size enterprises

1. The possibility and need of business ethics codes in small and medium-size enterprises Ain Kabal Vice President of EVEA 08.04.2008

2. Introduction • EVEA is a non-governmental, non-profit association of SME's and self-employed persons performing a representative, advocacy and lobbying function for small and medium-sized businesses as a social group. • Established in 1988. • Represents more than 1000 entrepreneurs. • Member of UEAPME. • EVEA is represented in more than 30 different committees, councils, lobbying groups.

3. Is there a need for business ethics code in SMEs? • Currently bits and pieces of business ethics are included in various documents (employment contracts and employment contract act, internal work regulations etc), no standardised approach • Vast majority of SMEs have no codified business ethics regulation in use, except subsidiaries of multinational global corporations • Resources of a standard SME are not often sufficient to produce a business ethics code, although there is a need for such • Code could help in establishing normal business ethics practices and prevent undesirable behaviour

4. The possibilities of business ethics codes • Standard code, prepared and enacted by government? • Sectorial codes, generally accepted by sectorial associations? • SME code of ethics – near future to come? • We cannot expect the authorities to facilitate us with readymade codes, at the end of the day it is the business society itself which sets rules for itself, the associations being the tools for collecting the experience, resources and best practices • Business ethics is a phenomena which changes in time, we try to reach the higher standards, but we cannot be much better than the environment

5. evea@evea.ee www.evea.ee