Business Ethical and Best Practices Issues Amid Covid-19 in Nigeria

A Code of Ethics as defined by investorpedia is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document outlines the mission and values of a business or organization; how professionals are supposed to approach problems, the ethical principles based on the organization’s core values, and the standards to which professionals are held. An Ethical issue is a problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Ethical issues in business encompass a wide array of areas within an organization’s ethical standards. Fundamental ethical issues in business include promoting conduct based on integrity and trust, but more complex issues include accommodating diversity, empathetic decision-making, compliance, and governance that are consistent with the organization’s core values. According to the Global Business Ethics Survey of 2019, 25% of employees still feel that their senior managers do not have a good understanding of key ethical and compliance business risks across the organization.

Many Business organization and Chambers through their training programmes, membership induction and monitoring framework continue to influence businesses across all sectors in Nigeria through ethical and best practices training of their employees.  For instance, the Chambers of Commerce, Professional Bodies like Institute of Chartered Accountants of Nigeria (ICAN), Nigerian Bar Association (NBA) and many others bodies  all promote best practices and good corporate governance through  their annual Conferences, trainings and online webinars for members of their respective bodies. They provide platforms to recognise and promote deserving corporate organizations and institutions in both the public and private sectors who have exhibited the core values of best business practices, good corporate governance, sustainability, and contribution to the development of commerce & Industry in different sectors of the Nigerian economy. They work hard to shape operators in the public and private sector in Nigeria towards global Best Ethical Practices and Good Governance, innovation and positive impact on the society.

COVID-19 has raised the stakes on ethical debates across the country where most Business Organization have departed from ethical and best practices blaming it on the protocols of the pandemic.  This article is set out to x-ray some of these ethical issues in business in the wave of COVID-19 pandemic and at the same time proffer ways of resolving them.

ETHICAL ISSUES IN BUSINESS

Harassment and discrimination, harassment and discrimination are arguably the largest ethical issues that impact business owners today. In the wave of the COVID-19 pandemic most organizations for the desire of maximizing profit have continue to harass, intimidate, abuse and even discriminate their employees who have raised concerns on issues of their health, safety and welfare. All the employer knows is target must be met, not minding whether the life of the employee is in danger.  While some Organizations or businesses have threatened employees with dismissal and pay cut without empathy, some have demonstrated nasty behaviours towards their employees without taking their views into consideration before taking decisions that have direct effect on their employees.   Should harassment or discrimination take place in the workplace, the result could be catastrophic for such organization both financially and reputational wise. Businesses are to be mindful and apply best ethical code of conduct that frowns at harassment and discrimination  of their employees.

Health and Safety in the Workplace

Employees have a right to safe working conditions more especially in the face of COVID -19. For instance, those working in the food processing industry like bakery deserve better protective working equipments as they come in contact with people who on a daily basis troop in and out of the bakery/selling points to buy bread.  Often times the reverse is the case as findings through visit in some bakery factory shows that most of the workers do not wear facemask or any protective clothing for safety, also proper training is not given to them on how best to safeguard themselves, a development which constitute gross ethical issue.

Social Media post

The question of the ethics of firing or punishing employees for their online posts is complicated, through widespread of social media handles like Facebook, Instagram, Twitter, WhatsApp, Messenger, Skype etc. This has made employees conduct online a factor in their employment status. However, the battle line is usually drawn when an employee’s online post on how a business organization handling issues of staff safety or welfare in the wave of the Pandemic is considered to be disloyal to their employer. This means that a Social Media post complaining about work is not punishable on its own but can be punishable if it does something to reduce business. Many employees in Nigeria have lost their jobs because they made post which the employer finds offensive and this is an ethical issue that should be addressed appropriately.

Ethics in Accounting Practices

Accounting Ethical codes are the fundamental principles that accounting professionals chose to abide by to enhance their profession, maintain public trust and demonstrate honesty and fairness.

In the accounting profession, many organizations publish their own ethical guidelines. The codes of conduct from the Institute of Chartered Accountants of Nigeria (ICAN), the Association of Certified Public Accountants (AICPA), the Chartered Institute of Management Accountants (CIMA) and the Institute of Internal Auditors (IIA) have similar code of conducts that aim to ensuring good professional practices. Some of the codes of conduct put in place by the above-named Accounting professions to guide private and public practices of Members are: Integrity, Independence and Objectivity, Confidentiality, Professional Competence/Due Care and Professional Behaviour. There are ethical issues in the practice of accounting profession such as Conflict of Interest, Insider Information, Gifts and Hospitality, Charging of Fees which may occur in organizations. Professional Accountants are guided by the code of conduct.

The confidentiality principle imposes an obligation on Professional Accountants to refrain from disclosing information obtained during business and professional relationship without proper or specific authority, unless there is a legal or professional right to disclose such information.

Due to COVID-19 in Nigeria, most businesses especially small and Medium scale enterprises have lost the value of ethical conduct on accounting practices. Every business organization must maintain good accounting practices- “cooking the books”, as this is a serious concern for organizations, especially in publicly traded companies.

Illegal disclosure of Information and Corporate Espionage

According to sprigghr.com, many employers are at risk of current and former employees stealing vital information, including client or customers’ data used by organizations in direct competition with the company. When intellectual property is stolen, or private client/customer information is illegally distributed as is witnessed across the country where many people have been using the guise of the pandemic to swindle unsuspecting members of the public through information supplied to them by unethical business organization, this constitutes corporate espionage.

Technology and Privacy Practices

COVID -19 and the developments in technological security pose privacy concerns for clients/customers and employees. Employers now have the ability to monitor and even regulate the employee activity on their computers and other company-provided devices, and while electronic surveillance is meant to ensure efficiency and productivity, it often comes dangerously close to privacy violation and unauthorized access to information. Organizations should put in place technological measures that could avoid easy hacking of systems put in place.

Thoughts on Addressing Ethical Issues in Business

In order to avoid ethical conducts in business especially in the wave of the COVID-19 pandemic, Professional Accountants, SMES, Companies, private and public can adopt the following as guides:

First and foremost, every business needs to be aware of the anti-discrimination laws and regulations that exist to protect employees from unjust treatment so as to avoid violation of their fundamental rights and forestall unnecessary business organization and employee litigation.

Secondly, health and safety concerns should not be limited to physical harm.  For instance, 2019 report conducted by United Nation Agency on Labour matters and the International Labour Organization (ILO), in which emphasis was placed on the rise of “psychosocial risks” and work-related stress and mental health concerns. Factors such as job insecurity, high demands, effort-reward imbalance, and low autonomy were all found to contribute to health-related behavioural risks, including sedentary lifestyles, heavy alcohol consumption, increased cigarette smoking, and eating disorders. Therefore, business organizations must treat their employees with empathy by showing deep concern for their wellbeing.

Thirdly, business owners must be able to respect and not penalize employees who are deemed whistleblowers to either regulatory authorities or on social media. This means that employees should be encouraged, for raising awareness on workplace violations online.

Fourthly, private and public organizations must keep accurate financial records to pay appropriate taxes and employee profit-sharing so as to attract business partners and investments.

Companies may put in place mandatory nondisclosure agreements, stipulating strict financial penalties in case of violation except where there is a legal or professional right to disclose such information.

Whether the COVID 19 pandemic persists or is eradicated, curbing ethical issues in business always starts with top management. Putting in place clearly written policies and processes that ensure those policies are both acknowledged and adhered to, this can ensure transparency and ethical business practices are applied. Business organization in the wave of the pandemic must ensure to communicate and enforce a robust code of ethics when making decisions and ask the same of their employees. Remain aware of the discrimination and Labour Laws that exist in Nigeria and ensure their organization is acting in compliance with those regulations. More so, collaborating with professionals like lawyers, accountants, and others in maintaining transparency and honesty in financial reports, while ensuring employee supervision always in making sure that they are following ethical procedures.