CODES OF BUSINESS CONDUCT FOR THE CONSULTING FIRMS AND INDIVIDUALS
Introduction In today's interconnected and interdependent world, where borders between states are becoming transparent, ethic principles in business conduct are criteria for Good Governance and good reputation within International business community. We, the solo practitioners / companies / organizations from Management consulting sector, and me as a Professional Consultant and member of the MCA-2000 , DECLARE that we shall be: fully professionally responsible and ultimately honest in the relationship with our Clients, Employer, Employees, Colleagues, all Stakeholders and the whole Society . The purpose of these guidelines is the intention of MCA-2000 to articulate General principles and standards that have been accepted in the International business transactions. These principles apply generally, and they could be adopted within the framework of our MCA2000 as well as in conduct of our consulting practice. Principles in Personal and Professional Relations We, the legal entities from Management consulting sector in Republic of Macedonia declare that: • We will serve for the interests of our Clients, Employers, Employees, Colleagues and the whole Society. • We declare that my interests shall not be above the interests of above stakeholders. • We will have respect for the partners and participants in a shared business venture • We will conduct our practice with the Clients and the Employers, with the utmost quality and efficiency • We will resist crime and corruption. We believe that crime and corruption at the end will become unprofitable for everyone. • We will be honest and correct in the presentation of our company or personal abilities, qualifications, experience and services. • We will be always being ready to improve the living conditions of those individuals / companies / organizations, which depend from the quality and honesty of our work. • As individuals, we shall take care of continuous improvement of our own professional skills, as well as abilities of our, associates, business partners, colleague's consultants and the staff. • We will contribute for the progress and growth of the profession MANAGEMENT CONSULTANT, as well as for the integrity, dignity, and image of the all members of MCA2000. • We shall conduct and respect the wide accepted General standards, Code of professional conduct of the MCA-2000 and the recognized and widely accepted principles of good consulting practice. • We understand that we are liable to disciplinary action if our business conduct is in contrary with this Code. We shall obey the decisions of the Board of directors, Ethics committee, Arbitrages and the Law. • We shall be sensitive to concerns of our clients, colleagues and MCA-2000. • We shall show tolerance for the people of other cultures, races, beliefs and countries.
Relationship with other Clients or individual / company / organization The members of MCA-2000 (including all individuals/ companies / organizations) must develop in the consultancy business, the professional relations with all parties. The existence of mutual trust and benefits for both sides is the most important issue between the partners in the business.
The reputation of the one consulting entity is the most valuable asset. Once the reputation of the consulting entity (sole practitioner or individual / company / organization) is damaged, it is very difficult to gain trust again. The consulting entity has to declare: • commitment to excellence of product / services • commitments to gain respect and trust in all business relations • in case of conflict, willingness to negotiate and compromise • Respect for the rule of Law, including abiding of Law, Court decisions and Arbitrages.
Relations with the Government Authorities Well-managed Association is Low abiding and democratic Association. We declare that: • We shall pay all taxes that are owed and due • We shall pay all sub-contracting work regularly to any individual / company / organization • We shall abide the Laws, Rules and the decisions of the Government, the Parliament of Republic of Macedonia, as well as regulations of the Local Authorities. • We shall respect all procedures and rules requested by the International donor organizations, in the case we receive grant or perform as MCA-2000 a project supported by any International legal entity Prevention of Un-ethical behavior and Bribery Principles concerning prevention of un-ethical behavior, corruption, bribery etc. can be treated by Law and as methods, norms of self-regulation. The voluntary acceptance of these principles by the consulting individual / company / organization will promote high standards of integrity between all stakeholders (consultants, clients, subcontractors, associates, Association etc). The business community gathered in the Chamber of Commerce of Macedonia, or Regional Chamber of Commerce Skopje, must prevent and condemn any form of un-ethical behavior, corruption, bribery etc. All members of MCA-2000, as well as the consulting entities within the consulting groupation in the Chamber of Commerce, should follow the rules: • No-one may, directly or indirectly, give, demand, accept or solicit ate any form of un-ethical behavior, corruption, bribery etc. • Any form of un-ethical behavior, corruption, bribery etc. must be rejected • All consulting entities: sole practitioners, companies, organizations (public or private) should take measures, reasonably within their power, to ensure that all payment services (fees, rewards) paid to the agent, are within the appropriate standards for provisions. Such fees should be fairly recorded in accounting books, and should not be passed to a third party. • Generally, contributions to the political parties or to any individual politician are not allowed from our Association. However, every individual member has rights as citizen, to contribute to one political party, according the Law regulations, but MCA-2000 will never incline or directly support any political party. Creation of a Culture that fosters the sound business standards, ethical practices and good governance • The preparation of Code of conduct with rejection of any un-ethical behavior, corruption, bribery etc. • sanctions against misconduct • creating an Ethical office in Chamber of Commerce of Macedonia • creating an Ethical officers to advice and educate employees in the Chamber of Commerce and its members
• the Judiciary system of Republic of Macedonia should be included in these efforts
THE STANDARDS OF GOOD BUSINESS PRACTICE The Standards of good business practice (in the further text STANDARDS) establish the impact of the CODEX (as a basic normative) on the present behavior and practice of the management consultants, members of MCA-2000 (Management Consulting Association). MCA-2000 is aware that the Standards are the IDEAL and the GOAL for all its members. We are aware that the Standards will not be easily accepted within the conduct of the management consulting practice. Sometimes, the rigged application of the Standards may create the Conflicts with some other business standards and interests: personal, professional or social. We leave to the CONCIUOS OF EACH MEMBER to decide his / hers behavior in such situation , to make choice between the Good and the Bad , but in the same time having in mind the dignity, integrity, honor and reputation of the management consulting profession . Priorities of the management consulting profession: 1. The Client and his requirements A member of MCA-2000 shall regard the Clients interests and requirements as the top priority at all times. • Competence. A member of MCA-2000 (in the further text: member) will only accept the work that the member is qualified to perform and in which the client can be served effectively. • A member will provide references from other clients if requested. • The part of the sub-contracting work shall be agreed with the client (see subcontracting). • Agreement on deliverables and fees. A member of MCA-2000 shall agree formally with the client and in advance of commencing works: the scope, nature and deliverables of the consulting services to be provided and the basis for remuneration. • A member should offer a realistic price for the consulting services, as recommended by MCA2000. • Revisions. Any subsequent revision will be subject to prior discussion and agreement with the client. • Subcontracting. A member shall subcontract part of the works / services, only with the prior agreement of the client, but will remain responsible for the performance of the consulting works, except where otherwise agreed. • Confidentiality. A member will hold all information, concerning the affairs of clients in a strict confidence and will not disclose any information during the process of consulting. • Due care. A member of MCA-2000 should give his / hers best efforts and ensure that: all advices, solutions and recommendations are based on competent, professional, impartial consideration and analysis of all available facts and relevant experience. The deliverables should be realistic, practicable and clearly understood by the client. • Communication. A member will ensure that the client is fully informed about the progress of the assignment. A member will properly communicate with the client, will encourage him for comments and will take note of any comment or feedback. • Respect. A member will act with courtesy and consideration towards all the individuals / company / organization during the consulting works. 2. Integrity, independence, objectivity A member shall avoid any action or situation inconsistent with the management consulting professional obligations or any action that may impair / make weaker his / hers integrity. In
formulating advice and recommendations, the member will be guided only by his / hers objective view of the clients best interests. • Disclosure. A member of MCA-2000 will disclose any special relationship or business interests that might influence his / hers judgment on a particular assignment, especially: any business competition with the client, financial interests in procurement of goods-services with the client, personal relationship with any employ of the client, any current engagement with the clients direct concurrence, any work for a third party on the opposite side of a transaction etc. • Conflicts of interests. A member of MCA shall not serve a client under circumstances that are inconsistent with his / hers professional consulting obligations and may affect the members integrity. Wherever such conflict of interests arises, the consultant shall withdraw from the assignment, remove the source of conflict or disclose and obtain agreement of the parties concerned. • Inducements. A member of MCA shall neither accept discounts, hospitality, commissions or gifts as an inducement to show favor to any individual / company / organization. • Marketing. Payment for legitimate marketing may be made from the Client to the Consultancy firm, but the consultant should not conduct unpaid marketing services in the favor of clients • Privacy of information. A member of MCA shall not use any confidential information about the client's affairs, for personal benefit or for a benefit of some third party. A member will establish specific working methods that preserve the client's information. • Objectivity. A member- consultant wills advice the client, not to expect unrealistic benefits from en engagement. 3. Responsibility to the profession A member shall conduct his / hers management consulting practice and will enhance the dignity of the profession, MCA and the business community. • Continuous professional development. A member of MCA-2000 will show initiatives for development of the management consulting knowledge and skills. • Tools .To be effective in management consulting a member must understand (and be able to use) the latte ideas and tools of the profession, by continuous training and development. • Professional development. The member will support the initiative for Certified Management Consultant (CMC) under the ICMCI (International Council of the Management Consulting Institutes) as an important benchmark in the Management consulting profession. • The member will encourage the other consultants (for whom the member is responsible) to develop their competence by professional development and entry in MCA-2000. • Professional obligations to others. A member of MCA-2000 shall have respect for the professional obligations and qualifications of all others consultants with whom he works. A member referring to a client for another consultant, will not misrepresent the qualifications of the other, nor will make any commitment for the other consultant. • The work of others. When asked by a client to review the work of another professional, the member should evaluate the other consulting work with: objectivity, integrity and sensitivity. • Payment. A member of MCA-2000 will negotiate fees and charges for the professional consulting services in a manner approved as being ethical and professional. He will consider the realistic price for the consulting services, as recommended by Decision of the Board of MCA-2000 and the methodology accepted. • Publicity. A member, in making presentation to a client, shall ensure that the given information is: factual, relevant, objective, fair to others, not discreditable to the profession. • Accepted methods of sharing experience: publication of the performed consulting work should be generally accepted ONLY with the permission of the Client, without mentioning the names, confidential data etc. It may be done for the purpose of: participation in the professional meetings, publications in professional magazines, for case studies, etc. But, the consultant is responsible to do it, without any harm to the interest of the Client.
• Personal conduct. A member MCA-2000 should be mentally and physically fit and proper person to practice the management consulting profession. He / she must have good reputation and character. • Matters for concern: conviction of a criminal offence, bankruptcy, unethical or improper behavior towards: employees, colleagues and the general public are matters for concern. In such cases, the Board of MCA-2000, Ethical commission (or other related body in MCA-2000), should be informed about such cases. In case of necessity, further disciplinary actions shall be undertaken, including dismissal from the membership of MCA-2000. 4. Social influence of the Management consulting profession The member of MCA-2000 will continuously take care to improve the living quality of those dependent of the quality of his / hers works or those who may be influenced from his / hers activities. The member (individual / company / organization) should declare: • I shall protect and improve the well-being of those influenced from my professional engagement • I shall regard and respect the individuality and the privacy of all my clients, employers, colleagues and partners • I shall respect my clients, employers, colleagues and partners • I shall consider, understand and I shall have empathy to the views of my colleagues, even they are not the same as mine. • I shall try to contribute for the feeling of professional and personal satisfaction, competency and development; to those working under my supervision, and for those I am responsible. • I shall never peruse any person, employee, client or partner, to perform an action that is in contrast with the Codex of ethics and the Standards of good business practice of the MCA2000. 5. Profession of a management consultant I shall try and contribute for the growth of reputation and dignity of the profession MANAGEMENT CONSULTANT, as well as the reputation of all members of MCA-2000. • I shall respect the opinion of my colleagues and I shall ask for their professional opinion and support for all relevant matters concerning my services. • I shall never make an arrangements in contrast with the Codex of ethics • I shall never promote my reputation on account of other poor reputation • I shall participate with my colleagues in common projects for adoption of new skills in management consulting profession. • I shall professionally distinct from the ex-members of the Association, being excluded for breach of the Codex of ethics and Standards of good business practice. • I shall undertake appropriate measures and protection, if I shall find-out that a member of MCA is included in some action in contrast with the Codex of ethics and the Standards of good business practice. • I shall ask for advice in the case I am faced with the ethics dilemma or a Conflict of interests. • I am awarded of the positive social impact of the profession MANAGEMENT CONSULTANT and I shall do my best for the promotion and the protection of the professionalism, dignity and reputation of MCA-2000.
6. Responsibility towards the Association I shall obey the Codex of ethics and the Standards of good business practice of MCA-2000. • I am awarded that only with the positive PERSONAL EXAMPLE and respect of the Codex and the Standards one consultant may impact the contribution of MCA to the society.
• I will pay my Membership fees and dues; because I am awarded that the MCA-2000 has no other permanent sources of financing. I shall obey the decision of the Board of MCA-2000, for financial support to the MCA-2000. • I shall actively participate in the activities of the Association, with the proposals of new ideas and I shall take personal engagement in their realization. • I shall actively cooperate and socialize with as many as possible members of the MCA-2000 and other related organizations, for the benefits of the stakeholders. • I will actively contribute to the functioning of: community of the consultants, mutual interest, professional cooperation and support. • I shall protect my reputation and the reputation of MCA-2000.