BUSINESS ETHICS IN PRACTICE

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BUSINESS ETHICS IN PRACTICE
Sergejus Muravjovas
www.transparency.lt
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BUSINESS ETHICS AND TRANSPARENCY INITIATIVES
Promotion of Business Ethics Principles in the
Baltic Region (2006-2008)
TI Lithuania, TI Sweden, TI Latvia, SIDA
More Integral Medical Treatment study (2007)
TI Lithuania, Association of Ethical
Pharmaceutical Companies, Association of Drug
Producers, LR Ministry of Health, Union of
Lithuanian Doctors
Transparency in Construction Sector Study
(2007-2008)
TI Lithuania, EIKA, REALTUS, YIT KAUSTA
Towards Transparent Media project
(2007) Promoting Media Accountability project
(2008)
NORDEN, TI Lithuania
PARTNERS SIDA, ECCJ, OECD Watch, TI
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How do Lithuanian business people understand
business ethics and CSR initiatives?

• World Bank (2005)EKT group study (2007)UNDP
  regional project (2007)TI Lithuania business
  ethics study (2008)

CONDUCTED STUDIES

• there are no cultural obstacles
• there is no resistance on behalf of employees
• do not see any economic enticements
• lack state support
• do not see initiatives that would support
  socially responsible business
• profit-making is essential no win-win view on
  business activities
• payment of taxes
• following the law
• securing work safety
• employee health care

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TI Lithuania business ethics study (2008)
Interviews with 20 out top 100 companies in
Lithuania, according to the Verslo inios
annual company list
Carried out in spring summer of 2008
One-hour-long in-depth interviews with A-level
executives
Ten questions
Funded by Swedish International Development Agency
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Q1 What is your company mission?
¼ business leaders were ready to present and
elaborate on their company mission
To perform construction work with quality and on
time. This work has to surpass expectations and
last.
Others stressed the importance of profit
The aim of the organization is to create
profit, to earn profit for shareholders and
serve good quality products to the customer.
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Q2 What are your company values?
A good relationship with the customers, employees
and environment is the essential value
In particular, those who have thought it through
Others Ambitiousness, leveling it with the
standards in the society

I would not separate values into those of
business and those that are not, they are one and
the same. No one has said it better than in the
Decalogue.
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The Ten Commandments
1. You shall have no other Gods but me 2. You
shall not make for yourself any idol, nor bow
down to it or worship it 3. You shall not
misuse the name of the Lord your God 4. You
shall remember and keep the Sabbath day holy 5.
Respect your father and mother 6. You must not
kill 7. You must not commit adultery 8. You
must not steal 9. You must not give false
evidence against your neighbour 10. You must
not be envious of your neighbour's goods.
You shall not be envious of his house nor his
wife, nor anything that belongs to your
neighbour
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Q3 What does ethical business mean to you?
There is no clear or uniform understanding of
what ethical business is
Ethical business is keeping your word?
¼ of company representatives pointed out that
there are many unethical companies in
Lithuania that doing well
When I see companies behaving unethically, I
console myself with the thought It will come
back to haunt them in the future.
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Q4 Who do you consider to be ethical business
leaders in Lithuania?
The majority could not provide an immediate answer
Six, after some consideration, did not provide
any answer
All those that look into the future are ethical?
Western / Scandinavian-owned companies?
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Q5 What is your opinion about codes of ethics?
Only a small number spoke of the Code of Ethics
as an integral part of their business identity
Codes of ethics are useful when they are followed
Many view the Codes with scepticism, not sure how
much they are actually followed
More than one-fifth of companies do not have a
Code of Ethics
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Q6 Does your company use a code of ethics /
similar rules?
YES
Why? Top-down, trickled down umbrella codes,
an essential need
How was it developed? A few speak of a
group-driven approach
Disseminated through Internet, newsletters, etc.
How does it help solve problems?
From Dont ask me, it does not help! to We
have a box for anonymous reports, which is always
full we have our company newspaper. The presence
of the Code makes people think when you have
rules written down, they really work like hidden
advertisement, and just get imprinted in your
consciousness.
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Q6 Does your company use a code of ethics /
similar rules?
NO
Why not? Not enough time, PowerPoint
presentation
What do you do when there are problems? The
vast majority solve issues through dialogue /
discussion
How do you explain to employees company culture?
Since many have such company cultures,
when someone misconducts, we do not throw
them away but talk.
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Q7 What is transparency business in Lithuania?
The majority understand what this should mean
Unfair competition
I am amazed of the extent of corruption in
Lithuania. To me transparent means being open
and declaring their interests, particularly when
it comes to lobbying.
One year and half ago we were declaring our
profits and losses but then noticed some negative
things. Competitors and providers started to
abuse this information and ask us Last year you
had a profit of 10 million Litas, so arent you
going to put down the price?
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Q8 How do you understand a concept of win-win?
The majority of business people like the idea but
question the extent of applicability in Lithuania
Generally, this is a good thing but there are
some exceptions
The market is not a walk in the park, holding
each other hands. If businesses compete with
technology and quality of work and the customers
receive good quality products, then its a
win-win.
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Q9 What is the future of transparent and
ethical business in Lithuania?
Our situation is not improving
There is less strangling in Lithuania nowadays
The future is good. Its all getting sorted out,
although when I compare my working environment in
an international company to the Lithuanian one
it looks like it got worse
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THANK YOU FOR YOUR ATTENTION!
QUESTIONS?
Sergejus Muravjovas
www.transparency.lt