The Private Sector Federation (PSF) is set to establish a code of business ethics to govern its members. The code will have basic guidelines stipulating obligations and responsibilities as well as ethical standards for all PSF members.
PSF is an umbrella organisation of all private businesses in Rwanda.
The PSF Director of Capacity Building and Employment, Molly Rwigamba said that the ethical standards are timely.
“It has been common that some businesses do not recognise and practice business ethics, which tarnishes the image of the private sector,” she explained.
Rwigamba cited an example where businesses are awarded contracts but do not fulfil them satisfactorily.
The code’s scope shall apply to the directors and managers of member companies, non executive directors, and all employees of the company. It will also involve shareholders of the company.
PSF officials say that it will be applicable to all member businesses of PSF despite their size and turn over.
Rwigamba said, “The ethical code should not be misunderstood as a tool for policing our members rather as a tool that provides clearance for correct ethical behaviour for our members.”
Its major objectives include enabling employees to make the right decisions at situations arise, providing a positive source of public evaluation, reputation and trust and to be specific enough to deter unethical behaviour.
The code of business ethics is also expected to improve on the entrepreneurship skills, which are said to be affecting country’s competitiveness. This is because studies show that the biggest percentage of the business community lack entrepreneurship skills.