Dr. Frederick Herzog, Ask SCORE, 02/19/12

Business ethics in corporate America are sometimes described as a practice that avoids lawsuits or actions bad for the company’s reputation. This mindset represents a very limited viewpoint and may tend to suggest conflict between profits and ethical business behavior. Nothing could be further from the truth.

A reasonable bottom line is only one primary goal in business. Owners and corporate executives work toward it and shareholders expect it. Ethics in business is and will always be linked to the practice of social responsibility and individual rights.

Understanding the importance of business ethics, SCORE established the ultimate example of a strong code of business ethics.

The SCORE Code of Ethical Conduct: SCORE delivers significant counseling services to the American business community. SCORE fully understands the importance of this responsibility and has developed a comprehensive Code of Ethics and Ethical Conduct. Every SCORE Business Mentor must adhere to, review and sign off on this ethics code annually. Here are the basics of the SCORE Code of Ethical Conduct.

Client interests must prevail: SCORE mentors must, under all circumstances, place the interests of the client first. This principle applies to offering appropriate resources to clients, protecting the confidentiality of business information provided by the client and avoidance of conflict of interest wherever it may exist. Even the perception of conflict of interest is to be avoided.

Compensation: SCORE volunteers are unpaid mentors and may not charge fees or accept compensation, in any form, directly or indirectly for counseling services. SCORE mentors are counselors not paid consultants.

If a SCORE client wishes to engage and compensate a mentor, the ethics code requires the mentor to resign in writing to the chapter chairperson. The client must be notified all futures services from that mentor are completely outside the scope of SCORE. Notice to the client must state, in writing, the SCORE/Mentor relationship no longer exists and SCORE is not responsible for any outcomes that may arise from the new relationship. For the record, the district director shall also, in writing, be notified of the above change in relationship.

Third parties: SCORE mentors may provide a list of professionals or suppliers (third parties to the relationship) that may be able to help the SCORE client. The code states a minimum of at least three, whenever feasible, is to be offered. The client is thereby afforded freedom of choice and conflict is avoided.

A mentor may not endorse a particular source of service or product to a client if the mentor, in fact, has a financial/familial interest, directly or indirectly, with the recommended source.

When a SCORE mentor makes a presentation to an organization and the group wishes to reimburse the mentor, such as in an honorarium, the organization must reimburse the SCORE chapter. The mentor, in turn, may receive expense only reimbursement from SCORE.

Personal interests: Safeguarding the SCORE mission is vital to avoidance or the appearance of conflict of interest. This means family members of a volunteer who are involved in a business must follow the same ethical code of conduct that is required of the volunteer.

Final comments on SCORE’s ethics code: There remain other aspects of the SCORE Code of Ethical Conduct to be considered. Future ASK SCORE articles will cover the balance of ethical guidelines.

SCORE’s main business is to coach, educate and mentor client entrepreneurs and the Official Code of Ethical Conduct has been adopted to best serve that goal.

SCORE is on the Campus of the College of Central Florida in Lecanto. Office hours are 10 a.m. to 1 p.m. Tuesday through Thursday. Call 352-249-1236 for information about SCORE and leave your contact information during non-office hours so we can call you back.

Dr. Frederick J. Herzog is Chairman of Citrus SCORE. His email address is: fherzog@tampabay.rr.com.