AAT: Bigger businesses more concerned about regulating ethical behaviour

Share this page

Written by Seun Robert-Edomi on 16 May 2014 in News
News

Nearly two thirds of microbusinesses do not have someone looking after ethical behaviour and one third of these types of businesses do not have a code of ethics, research reveals

New research from the Association of Accounting Technicians (AAT) shows that the bigger the business, the less likely it is for business owners to trust their employees to act ethically. 
 
The study was conducted by Opinion Matters on behalf of AAT with owners of microbusinesses and owners of small and medium-sized enterprises (SMEs). It found that only 37 per cent of SMEs trust their staff to do the right thing compared to 66 per cent of microbusinesses.
 
Interestingly, the report also highlighted that as the number of employees increases, businesses are more likely to find a member of staff dedicated to ethical behaviour as well as having a formal code of conduct. Nearly two thirds of microbusinesses do not have someone looking after ethical behaviour and one third of these types of businesses do not have a code of ethics. 
 
The scenario is different when we look at SMEs with only 19 per cent admitting to not having a business code of ethics and 39 per cent do not have someone responsible for looking after ethical conduct. 
 
When asked whether business owners consider the ethical behaviour of their suppliers before agreeing to work with them, more than 37 per cent of microbusinesses do not look into this aspect whereas only 23 per cent of SMEs do not take this into account. 
 
Director of the Institute of Business Ethics, Philippa Foster Back, said: “Due to requirements of prime contractors higher up supply chains, smaller firms are increasingly asked during tendering processes about their ethical risk management. 
 
“The ethics of a small organisation is typically influenced by the owner-manager as their behaviour will set the tone of the business and any values and ethical principles will usually be implicit. However, there are advantages to having a more formal ethics policy in place. Firstly, it reinforces and makes explicit the values and principles that are part of the organisational culture, so allowing them to be communicated to stakeholders. Secondly, a policy will provide guidance and support to employees on how they are expected to conduct their business.”
 
Adam Harper, director of professional development at the AAT, said: “In the finance and accounting sector, we are well aware of the importance of ethics in business and the role it plays. New clients are likely to be drawn to work with organisations that demonstrate their integrity, so we take the view that ethical companies are sustainable companies.
 
“It’s also important for microbusinesses and small businesses to examine their supply chains and to ensure that the people they are doing business with also act ethically to protect brand reputation but also to ensure fair play within industry sectors. A business supply chain is as much a reflection on their organisation as their employees are.” 

CONTRIBUTIONS FROM READERS

Please login to post a comment or register for a free account.

Related Articles

17 January 2022

There has never been a tougher time to lead a team says George Karseras and building trust from the start is key

21 January 2022

Jo Bryant lays out her top tips on how to navigate eating at work in the remote world  

19 January 2022

Adrian Mulligan reveals the results of Elsevier’s recent study into research funding. With a change in direction across fields there are many opportunities researchers should embrace

Related Sponsored Articles

14 January 2022

Anthony Santa Maria on how personalised learning builds future-ready workforces

5 March 2018

Managers back apprenticeships for workers of all ages as a way to overturn the long-term employer underinvestment in skills, according to a new survey of 1,640 managers by the Chartered Management...

15 December 2021

We need to do a better job of preparing young people for the world of work, so they can make informed choices and build fulfilling careers.  

Tags