Businesses that have incorporated a commitment to transparency and ethical conduct into their systems have laid the essential groundwork for fostering a compliant environment. Employees need to live and breathe compliance. It must be expressed in their relationships with clients, service providers, suppliers, partners, and shareholders.
Prae Venire assists others to incorporate compliance programs. With that being said, leading by example is crucial. We owe it to ourselves and our clients to comply with every applicable law and regulation, as well as with high ethical standards. If our conduct is not beyond reproach, then we could never be in the line of work that we are. One who does not demonstrate the highest standards and runs their business inappropriately has no right to stand before others to discuss it.
No business progresses without people in the organization making decisions. Decision-making is a vital component of business achievements.
During a decision-making process (making choices, gathering information, assessing alternative resolutions), wise business people understandably are anxious and focused on identifying the best option due to the risk of being wrong. In general, any business decision somehow will affect the organization itself, stakeholders, shareholders, the market, or the industry, if not all at once. Therefore making responsible, realistic, and logical determinations and judgments can lead the company to long-term prosperity.
Making Ethical Decisions
Needless to mention that companies thrive when decisions are also made based on ethical principles. By making choices with integrity and not disregarding the law, companies are driven to success. However, organizations may not have a simple system that assists people with making good decisions in their daily work lives.
While it’s common to have people tense, worried, and anxious when they are facing a tough choice, wise leaders shouldn’t let stress get the better of their team.
Stressed-out individuals tend to rush their decisions without thinking them through, or they simply avoid making an important decision at all (the so-called ostrich syndrome).
Demonstrate How Decisions Are Made
In order to avoid bad decisions or the ostrich syndrome, there exist ways to manage corporate decision-making processes based on:
There are basically two tools any business should make available to their stakeholders and shareholders: a Code of Conduct and Ethics and a Decision Tree. Both of them, when well designed, provide useful guidelines and practical information that help people of any organization when deciding which path to take.
Code of Conduct and Ethics
A Code of Conduct and Ethics improves company culture, and provides people with a framework of which rules exist, from a regulatory and law-enforcement perspective, and of how to act ethically. It has to be written concisely and the language has to be clear.
The decision tree is a flowchart with a series of questions that we ask ourselves when faced with a decision.
The answers to these questions visually display decisions and their potential outcomes, consequences, and depending on how detailed the questions are, even the costs involved in a choice that is made.
Develop Your Own Decision-Making Tools
Any business, to possess and demonstrate its core values while remaining compliant with the laws and regulations that govern its industry, no matter how big or small, will always benefit from having its own decision-making tools.
To learn more about how we can assist you and your business with the vital task of remaining compliant while expressing and reinforcing it to everyone, contact Prae Venire to schedule your consultation.