The Six Pillars and the Global Business Standards Codex (GBS)

Pillars
Trustworthiness

Concepts and Standards [Constituency]

Transparency Principle

Conduct business in a truthful and open manner.

Refrain from deceptive acts and practices.
Make timely disclosures of material information while respecting obligations of confidentiality and
privacy.
Truthfulness
Be honest and respect truth in all activities.
Record transactions in a fair and accurate manner.
Deal with suppliers and partners honestly [Suppliers/Partners].
Deception
Avoid deceptive and misleading statements and omissions in customer-related activities, such as
marketing, sales, and research [Customers].
Do not acquire commercial information by dishonest or unethical means [Competitors].
Disclosure
Make timely disclosures of relevant financial and nonfinancial information.
Engage in transparent accounting and financial reporting.
Provide investors with relevant, accurate, and timely information [Investors].
Give customers adequate health and safety information, warnings, and labels [Customers].
Provide accurate information about the content, use, and maintenance of products [Customers].
Give reasonable notice of operational changes likely to have a major effect on employees livelihood
[Employees].
Candor
Communicate in an open and honest manner, subject to legal and competitive constraints
[Employees].
Communicate and consult with communities affected by environmental, health, and safety impacts of
the enterprise [Public].
Objectivity

Trustworthiness
(continued)

Adhere to independent auditing and financial-reporting standards.

Reliability Principle

Honor commitments.
Be faithful to your word and follow through on promises, agreements, and other voluntary
undertakings, whether or not embodied in legally enforceable contracts.
Contracts
Pay suppliers and partners on time and in accordance with agreed-upon terms [Suppliers/Partners].
Promises
Honor promises and agreements.
Commitments
Fulfill implicit and explicit obligations to all constituencies.

Respect

Dignity Principle

Respect the dignity of all people.

Protect the health, safety, privacy, and human rights of others.
Refrain from coercion, and adopt practices that enhance human development in the workplace, the
marketplace, and the community.
Respect for the Individual
Respect the dignity and human rights of others.
Adopt work practices that respect employees dignity and human rights [Employees].
Prevent harassment in the workplace [Employees].
Prefer suppliers and partners whose employment practices respect dignity and human rights
[Suppliers/Partners].
Support and protect human rights within the companys sphere of influence [Public].
Health & Safety
Protect human health and safety.
Ensure that products and services sustain or enhance customer health and safety [Customers].
Protect employees from avoidable injury and illness in the workplace [Employees].
Provide a work environment that is free from substance abuse [Employees].
Prefer suppliers and partners whose work practices respect international labor standards on health and
safety [Suppliers/Partners].

Respect
(continued)

Responsibility

Privacy & Confidentiality

Respect customers privacy [Customers].
Protect confidential customer information [Customers].
Respect employee privacy [Employees].
Protect confidential employee information [Employees].
Use of Force
Abstain from directly or indirectly using forced or child labor [Employees].
Ensure that security personnel respect international standards on the use of force [Public].
Contribute to the elimination of forced labor and abusive labor practices [Public].
Association & Expression
Recognize employees right to free association and collective bargaining [Employees].
Prefer suppliers and partners whose work practices respect international labor standards on free
association and collective bargaining [Suppliers/Partners].
Respect customers cultures [Customers].
Respect local cultures [Public].
Learning & Development
Assist employees in developing skills and knowledge [Employees].
Create employment opportunities that enhance human development [Employees].
Employment Security
Safeguard employment and employability [Employees].

Fiduciary Principle

Act as a fiduciary for the company and its investors.

Carry out the companys business in a diligent and loyal manner, with the degree of candor expected
of a trustee.
Diligence
Promote the companys legitimate interests in a diligent and professional manner.
Maintain the companys economic health.
Safeguard the companys resources and ensure their prudent and effective use.
Refrain from giving excessive gifts and entertainment.
Provide a fair and competitive (or better) return on investment [Investors].

Responsibility
(continued)

Loyalty
Use position and company resources only for company purposes (not for personal gain).
Disclose potential conflicts between personal and company interests.
Refrain from activities involving actual conflicts of interest, such as self-dealing and competing with
the company.
Refrain from receiving excessive gifts and entertainment.
Refrain from pursuing for personal benefit opportunities discovered through position or company
resources.
Refrain from trading in the companys securities on the basis of confidential company information
[Investors].

Property Principle

Respect property and the rights of those who own it.

Refrain from theft and misappropriation, avoid waste, and safeguard the property entrusted to you.
Protection
Protect company assets, including confidential and proprietary information, funds, and equipment.
Theft
Do not misappropriate company resources through theft, embezzlement, or other means.
Respect rivals property rights, including those regarding intellectual property [competitors].

Fairness

Fairness Principle

Engage in free and fair competition.

Deal with all parties fairly and equitably.
Practice nondiscrimination in employment and contracting.
Fair Dealing
Deal fairly with all parties.
Deal fairly with minority share owners [Investors].
Treat customers fairly in all aspects of transactions [Customers].
Set prices that are reasonable and commensurate with quality [Customers].
Offer fair and reasonable compensation [Employees].
Deal fairly in all activities, including pricing, licensing, and rights to sell [Suppliers/Partners].
Fair Treatment

Fairness
(continued)

Caring

Practice nondiscrimination and provide equal employment opportunity [Employees].

Provide equal opportunity to suppliers owned by minorities and women [Suppliers/Partners].
Prefer suppliers and partners whose employment practices respect international standards on
nondiscrimination [Suppliers/Partners].
Fair Competition
Engage in free and fair competition [Competitors].
Refrain from colluding with competitors on prices, bids, output, or market allocations [Competitors].
Refrain from seeking or participating in questionable payments or favors to secure competitive
advantage [Competitors].
Require suppliers and partners to refrain from bribery and improper payments [Suppliers/Partners].
Fair Process
Do not retaliate against employees who report violations of law or company standards [Employees].

Responsiveness Principle

Engage with parties who may have legitimate claims and concerns relating to the companys
activities.
Be responsive to public needs while recognizing the governments role and jurisdiction in protecting
the public interest.
Addressing Concerns
Respect share owners requests, suggestions, complaints, and formal resolutions [Investors].
Offer products and services whose quality meets or exceeds customers requirements [Customers].
Provide timely service and remedies for customer complaints [Customers].
Engage in good-faith negotiation in cases of conflict [Employees].
Respond to employees suggestions, requests, and complaints [Employees].
Public Involvement
Collaborate with community groups, and support public policies that promote economic and social
development [Public].
Cooperate in efforts to eliminate bribery and corruption [Public].
Support and protect democratic institutions [Public].
Support diversity and social integration [Public].

Citizenship

Citizenship Principle

Citizenship
(continued)

Act as responsible citizens of the community.

Respect the law.
Protect public goods.
Cooperate with public authorities.
Avoid improper involvement in politics and government.
Contribute to community betterment.
Law & Regulation
Obey applicable laws and regulations.
Do not participate in money laundering or other illegal activities that support terrorism, drug traffic,
or other organized crime.
Do not obstruct legal rights of share owners [Investors].
Adhere to competition laws [Competitors].
Adhere to environmental laws and standards domestically and internationally [Public].
Adhere to the letter and spirit of tax laws and make timely payments of tax liabilities [Public].
Public Goods
Do not condone or participate in bribery or other forms of corruption.
Protect and, where possible, improve the natural environment.
Promote sustainable development.
Ensure that products and services sustain or enhance the natural environment [Customers].
Prefer suppliers and partners who observe applicable environmental standards [Suppliers/Partners].
Do not use lack of scientific certainty as a reason to postpone cost-effective measures to address
threats of serious damage to the environment [Public].
Cooperation with Authorities
Cooperate with public authorities to address threats to public health and safety from the companys
products and services [Customers].
Cooperate with employee groups, government, and others to address employment dislocations
created by business decisions [Employees].
Political Noninvolvement
Recognize governments obligation and jurisdiction concerning society at large [Public].
Avoid improper involvement in political activities and campaigns [Public].

Civic Contribution
Contribute to the economic and social development of local communities and the world.
Develop innovations in technology, products, processes, and practices.
Contribute to charitable causes [Public].
Support employee involvement in civic affairs [Public].
Take a leading role in preserving and enhancing the physical environment [Public].
* Harvard researchers identified eight ethical principles underlying the evolving global standards for business. Adapted from:
Lynn Paine, Rohit Deshpande, Joshua D. Margolis, and Kim Eric Bettcher, Up to code: Does your companys conduct meet worldclass standards? Harvard Business Review, December 2005.