10 Life Changing Lessons Nr. 8 – Bussiness Ethics

Two people have the same business idea, the same background and the same opportunities. They go about building and constructing their business, yet only one becomes successful and the other one does not – why?

The 10 Life Changing Lessons that I have been working through play a role in placing these business leaders in a different category. Have a look at the others here https://pulaversie.wordpress.com/category/10-life-changing-lessons/ .

That statement may be true in a perfect world. Experience has taught me that even “only ethics” is much more complicated than it sounds. Take for example the common excuse that is often raised here in South Africa when addressing corruption and bribery: “but that is our culture”.

Let’s have a look at three scenarios that happen in business daily. After each scenario I will ask some questions that will guide you in making an ethical business decision.

Scenario 1:

Let’s say we build a relationship with a person in a business, who has signing powers. The relationship then progresses to golf sessions and hunting trips. At these trips, upcoming projects are discussed and eventually, we manage to give input on the scope and specifications.

Then the RFQ or tender is sent out and we are then shortlisted, because it is our specifications and eventually we get the job. Is this unethical? What should I do if my partners engage in such activities?

Ethical Test Questions

• What is the motive for having this relationship?

• Do they really love playing golf and hunting, or are there concealed motives?

Suggestion – If the tender is awarded purely based on competence and no biased relationship, no problem. Most business is done based on referral within your network relationships.

Scenario 2:

​What if someone in the supply chain of a business phones me and tells me that he managed to process our purchase offer, after it had a few documents missing and they were patient to allow us to resubmit, and later asks for a “cold drink”, meaning, something to wash his hands. Is that right?

Ethical Test Questions

• If the purchase offer was complete, why do you need to add some “documents” to convince the client?

• When you cross the border of providing “additional documents”, you will never live in “peace country” again. This border becomes a slippery slope, instead of a safeguard.

Scenario 3:

There are people who have built a network over time and can introduce people to powerful people in the industry. They then negotiate a scope and help “facilitate” deals for a “facilitation fee”.

Ethical Test Questions

• What is the difference between a “commission fee” and a “facilitation fee”?

• Is this facilitation fee part of the contract requirements?

• Does the facilitation fee have a direct influence on the awarding of the contract?

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These different scenarios are what I call the “frog in the pot” effect. While the water is still cold in the pot on the stove, the frog jumps out – no problem, but… you know the story. As the water becomes warmer, it increasingly becomes difficult to jump from the pot.

The Unashamedly Ethical values assist you to be proactive in terms of business ethics. Take the commitment by signing in your personal capacity. Do it here:

http://unashamedlyethical.com/registration-individual/

… and then also commit your business.

You get listed on the online directory, and then download the Unashamedly Ethical Mobile app:

For Android – http://bit.ly/2qNU0fb

For Apple – http://apple.co/2swURlS

and report unethical business to the Ombudsman. By doing this you are becoming part of a movement that is changing the ethical climate of South Africa. By doing this you are no longer idle in the face of South Africa’s biggest challenge.