Ethics in Business: Preparation of an Outline Ethics Program Designed for a New Company There are two major ethical program orientations: Compliance based and values based (Antony, 2015). Compliance focuses on laws, codes of conduct, and penalties for noncompliance. It keeps companies out of trouble, but does not necessarily make them leaders in their fields. It is a low bar over which we must reach. We will assume company employees know the laws of their professions and will be in compliance. So we will focus during this ethics program on the values we want the company to uphold. Ideally, values will be ideals that employees will want to aspire to and be motivated to uphold. Values are the high bar that we strive for in order to …show more content…
There are many reasons to focus on retention of our customers (Lawrence, 2012): It costs about five times as much to obtain a new customer as it does to retain an existing customer. It is estimated that it is about 50% easier to sell to existing customers. Doing 5% better at retaining existing customers is estimated to increase profits by about 75%. And 20% of existing customers provide about 80% of future profits for successful companies. So we focus on …show more content…
Keep meticulous records of business income. Send all records to Accounting. Records should be reconciled daily, monthly, quarterly, and yearly. Internal and external audits will ensure compliance. Your taxes are withdrawn for income tax, Social Security, and Medicare. The company pays for our share of your Social Security and Medicare payments, also unemployment insurance, workers' compensation, health insurance, and retirement plans. Investors/Shareholders: Investors have been willing to have faith in our business and our vision from the beginning of the company. They deserve to be rewarded for their faith and their patience. All records are available in the business office for investors' inspection. Investors will receive quarterly and annual reports. This includes employees, who as profit-sharing partners are also investors. Dividends will be paid on a regular basis. Accounting is done by professionals with a reputation for accuracy. The company will have internal and external auditors in place to provide checks and balances. It is our intention to retain our management team for the long term, so that investors know who is running the