While it were the large enterprises that mainly articulated the ethical practices in business domains and public forums, small and medium enterprises (SMEs) are beginning to echo this imperative in clear recognition of the importance of maintaining trusting relationships with customers, employees, suppliers and the community at large. In a competitive environment with innumerable suppliers and buyers, SMEs are not only impacted by the new demands placed by buyers with regard to ethical practices but are also affected by the practices followed by their own suppliers. With this premise, CII organized a MSME Dialogue Session on Developing Competitive Advantage for SMEs through Ethical Business Practices in New Delhi on 26 February, 2014.
The background document discusses the importance of ethical business practices and a formal ethics policy for MSMEs. It also contains recommendations for devising and implementing an effective ethics policy as a formal code of conduct for guiding MSME business operations. The inclusions also include the CII Code of Business Ethics which rests on 8 fundamental principles of national interest, ethics and integrity, adherence to values, transparency, avoiding corrupt practices, encouraging competition, following and respecting the code, and whistleblowing, and can serve as an ideal for SMEs that are drawing up their own code of business ethics.