Business Organization Contribution in the Economic Development (1)

Business Organization Contribution in Development

Economic Development

• Wealth Creation
• Employment
• Innovation

Social Development

• Entrepreneurship
• Choice in Products
• Quality of Life

Fairness

Definition

The state, condition, or quality of being fair, free from bias or injustice; evenhandedness.
The quality of being just, equitable, and impartial.

Seven Fairness Principles

Source: International Trade and Theory and Policy by Steven M. Suranovic

1. Distributional Fairness - Concerns wealth/income distribution within a country or globally.
   Egalitarianism: Complete equalization of income and wealth.
2. Non-Discrimination Fairness
3. Golden-Rule Fairness - Motivates belief in the equality of actions.
   
   • Positive Reciprocity: Reciprocal positive effects of actions.
   • Negative Reciprocity: Reciprocal negative effects of actions.
4. Privacy Fairness
5. Maximum Benefit Fairness - Actions are chosen to maximize net benefits for people.

Accountability and Transparency

Accountability

Being responsible for actions and explaining them.
Implies duty and redress when commitments are unmet.
Ensures answerability of officials in public, private, and voluntary sectors.

Transparency

Open, honest, and understandable communication and operations.
Information should be:

• Relevant and Accessible
• Timely and Accurate

Key Notes

Transparency ensures clarity, even for technical details.
Both accountability and transparency work hand-in-hand.
Source: Transparency Initiative

Stewardship

Ethical responsibility to act on behalf of others.
Honors service responsibilities over self-interest.
Encompasses careful and responsible management of entrusted resources.

Business Policies and Practices

Definitions

• Business Policy: Blueprint of repetitive organizational activities, defines decision-making scope, and governs actions.
• Business Practices: Tactics or activities for achieving business objectives; methods, procedures, or rules used for goals.

Features of Business Policy

1. Specific
2. Clear
3. Reliable
4. Appropriate
5. Simple
6. Comprehensive
7. Flexible
8. Stable

Best Practices

1. Engage Workers
2. Reward Effort
3. Be Vulnerable
4. Stay Committed
5. Seek Clarity
6. Create Culture Cohesiveness
7. Focus Team Effort
8. Hold Regular Meetings

Code of Ethics

Definition

A formal document outlining organizational values and ethical expectations.

Responsibilities to Stakeholders

• Investors and Owners: Fair returns on investments.
• Customers: Safe products.
• Suppliers: Fair deals.
• Employees: Decent wages.

Key Statements

Addresses conflict resolution, disciplinary action, and labor law compliance.
Promotes respect for trade secrets, fair business deals, and ethical use of assets.

For Employees

Public officials and employees should act with responsibility, integrity, loyalty, and patriotism.

For Companies

• Honesty, Integrity, and Fairness
• Excellence and Diligence

Decorum

The dignified propriety of behavior, speech, dress, and etiquette.
Synonyms: Politeness, Manners, Dignity, and Etiquette.