By Lee Yan Nee

MOST Singapore businesses strive to operate ethically and have codes of conduct governing their actions, according to a new report.

The National University of Singapore Business School study, which surveyed 100 companies across 20 industry sectors, found that more than 60 per cent have a published code of conduct, and of these, 80 per cent apply it globally.

The remaining firms either have no code or are in the process of establishing one.

The codes provide guidelines for employees on matters such as internal relationships, keeping business promises, adhering to contracts and agreements, treating customers and suppliers fairly, and representing companies externally.

About 70 per cent of the businesses surveyed thought that complying with their codes helped them to retain customers, while six in 10 believed it helped keep employees.

More than half of the firms required suppliers to comply with their codes, with 62 per cent of them ready to take action if suppliers failed to do so.

A majority - 59 per cent - had procedures to protect whistle-blowers.

This was crucial because it allowed employees to report violations without fear of reprisal, said Adjunct Associate Professor Bob Fleming, who compiled the report in collaboration with the Singapore Compact for Corporate Social Responsibility and the Singapore Business Federation.

When there were breaches to the code, 68 per cent of firms had a formal procedure to follow.

About 76 per cent of the companies trained new staff to make them familiar with their codes of conduct, and 56 per cent used adherence to them as a key employee performance indicator.

However, only half of the companies had audit programmes to check on employee compliance, with just 40 per cent of these randomly scheduled.

Prof Fleming noted that some firms' audit schedules were flagged in advance to employees, which enabled them to better prepare for assessments. To get more reliable audit results, he suggested that companies conduct more random audits alongside those that are scheduled.

The survey found that almost nine in 10 company codes of conduct focused on prevention rather than dispute resolution should abuses occur. Prof Fleming said this might indicate businesses were not equipped to handle violations.

More firms should provide incentives to those who comply with their codes of conduct, given that only 17 per cent of companies surveyed did so.

Still, Prof Fleming said, the survey illustrated that 'the business society here was an ethical one'. 'Singapore companies not only practise good ethics, but they also do so when they are out of the country.'

Mr Thomas Thomas, executive director of the Singapore Compact for Corporate Social Responsibility, said companies lacking written codes did not necessarily act irresponsibly.

'For example, many SMEs (small and medium-sized enterprises) here do not put it down in writing, but they implicitly have the right values and apply them in their business practices.'

This article was first published in The Straits Times.