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| CONFERENCE CONCEPT | ORGANIZING COMMITTEE | PROGRAMME | PARTICIPANTS | CONFERENCE LOCATION | THESES OF REPORTS | FINAL DOCUMENTS | PHOTOREPORTING |
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| SITE: Main page »»» Code of Ethical Principles |  |
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| The Code of Ethical Principles and Rules of Economic Activities Resulting document of the VIII World Russian Peoples Council 4 February 2004, Moscow |
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| The present Code of ethical Principles and Rules is offered for voluntary acceptance by CEOs, entrepreneurs, employees, trade unions and all other participants of economic processes, including government agencies and NGOs involved in economic activities. The present document does not duplicate provisions of the existing legislation. Nor does it deal with the technicalities of economic relations regulated by specific provisions adopted by state bodies and professional communities. The ethical principles and rules formulated below are based on the Ten Tables given by God, as well as on the experience in obeying these commandments by Christians and people confessing other religions traditionally practiced in Russia. These principles and rules should not be taken for a literal interpretation of the Biblical texts. They rather represent regulations that ensue from Gods Commandments in their broadest interpretation, as well as from age-old religious and ethical heritage, including that of Russia. The Code of Ethical Principles and Rules describes an ideal economic model that does not exist at the moment but should serve as a beacon in everyday activities. It may take very long before the reality starts to conform with the present document. But one should not hasten to say that this is goal unattainable, for in striving for clear conscience and dignified life, a person, supported by God, can overcome all the obstacles, even if it comes down to such an complex sphere of human life as economy. |
| I. Without forgetting about ones daily bread, one should keep in mind the spiritual meaning of life. Without forgetting about ones own benefit, one should also show concern for the good of the neighbour, that of society and the home country. Russias history has seen various approaches to the question of what takes priority - material or spiritual matters, private or public interests. The spiritual ideal has been many times sacrificed for utilitarian interests and vice versa. At some points in history, public interests dominated over personal ones, while in other periods the opposite was the case. This problem was a topic of argument between the Josephites Non-possessors, Westernizers and Slavophils, and among public leaders of the post-Soviet period. The very existence of such discussions proves that individual and common benefit, the material and the spiritual are equally important elements of human existence. For this reason, neither spiritual ideals, nor the aspiration to material good, nor personal interests, nor the good of ones neighbour and society should be neglected. Throughout the countrys history, the Russian spiritual and ethical tradition has gravitated towards the domination of the spiritual over the material, towards the ideal of self-sacrifice for the sake of public good. But the extreme manifestations of such a choice have often led to horrifying tragedies. Keeping this in mind, we must create an economic model that will help to harmoniously fulfil both spiritual aspirations and material interests of the individual and society. The historical experience suggests that the task of creating such harmonization is facilitated by observing the rules based on biblical principles. II. Wealth is not an end in itself. It must be an instrument in ensuring dignified life for individuals and society. The cult of wealth and ethical ideals are incompatible. Treating wealth as an idol will inevitably destroy economic and legal culture, give rise to injustice in the distribution of the fruits of labour, and trigger a social war of all against all. The accumulation of wealth for the sake of wealth will lead an individual, a business and a national economy as a whole into a deadlock. Wealth in itself is neither a blessing nor a punishment. It is first and foremost a trial and responsibility. For a moral person property is not only a means of gaining profit, but also an instrument of serving the ideals of the good and justice. Property produces maximum return only when it is used effectively, and the products of its exploitation are distributed in a fair and responsible way and invested in social stability. Those who create material benefits exclusively for themselves, their own families or social group they represent, neglecting other peoples interests, break ethical laws and lose a lot in economic terms. The larger the property is, the greater is the power of the owner over other people. That is why the economic exploitation of property should not be guided by selfish interests and run counter public interests. Honest economic activity rules out the possibility of personal enrichment at the expense of public good. The welfare of conscientious entrepreneurs and employees must be proportionate to their labour contributions and should result from the creation, careful exploitation and enrichment of socially useful benefits. The duty of a prosperous person is to help other people, without expecting public recognition in return. Both business people and governmental bodies must proceed from the principle of justice in taking economic decisions. Consumption and living standards must be reasonable and moderate. They must take into account the state of the environment. Money is just an instrument in attaining a goal. It must be kept in constant movement and circulation. Business activity one that is really arresting - is the true treasure of an entrepreneur. Rejection of the cult of money liberates a person, giving him internal freedom. Poverty or affluence do not testify to a persons righteousness or immorality. A poor person, wasting away his or her talents or using them for egotistic ends, is no less immoral than a wealthy person refusing to donate part of the income to the public sector. Like affluence, poverty is a trial. A poor person must behave in a dignified way, strive for efficient labour and increase professionalism, in order to find a way out of misery. In this, he or she must be assisted by the government, society and business community. III. Business culture and honesty make both individuals and economy better. Business relations should be based on respect for the rights and lawful interests of the parties. Economy must combine the principles of justice and efficiency. Having power over material resources and people, employers, including the state, must take responsibility for economic decisions taken, for the actions of the employees and the consequences of their activity. Integrity and professionalism in relations with customers and business partners create confidence and strengthen the economic position of a company, while unfair play dooms it to an inevitable collapse. Compliance with oral and written agreements is a basis for harmonious relations in economy, whereas the nonfulfillment of commitments will undermine the authority of a business community and that of the country as a whole. Such behaviour should be subject to public condemnation which can take various forms (denial of personal contacts, public boycott, expulsion from professional associations). The same rules should be applied to dishonest workers who fail to fulfil their obligations under a labour agreement. A enterprise can only be successful if every member of the staff meets their commitments. The mission of the state is to adopt laws that maintain or develop a culture that encourages fulfilment of commitments. It must also set an example of such culture, especially in the areas of economy and government, and in keeping its political promises. The major function of the state is an effective control over the compliance with the existing agreements. Such vices as foul language, sexual harassment, battery, hard drinking, familiarities are unacceptable at workplace and in relations with business partners. The good name of a company must not be manipulated for personal ends, and personal profit must not be made to the detriment of the common cause. Fraudulent practices in relations with buyers in the service sector and trade result in the loss of confidence and quite often in bankruptcy. Rudeness, laziness, negligence, untidiness of a worker, having direct contacts with customers, repels the clients thus causing damage to business. Ethically responsible participation in economic activities manifests itself, among other things, in politeness, self-control in critical situations, respect for other peoples opinions, even if they are erroneous. It is not by accident that in Russia the motto of the merchant community was: Profit is above all, but honesty comes before profit. Business reputation is a long-term asset. It is an asset that is difficult to acquire but quite easy to lose. IV. Humans are not non-stop operating machines. They need time for leisure, spiritual life and creative development. Incessant monotonous work, even that of intellectual character, leads to a persons spiritual impoverishment and eventual degradation. Nothing can justify refusal to provide an employee with appropriate rest time, days off and vacation. Apart from that, an individual should have an opportunity to change areas and types of work. Entrepreneurs, government and society must take care of the intellectual, spiritual and physical development of each individual. Today it is impossible to build and retain material and financial capital without intellectual capital, i.e. a persons voluntary investment of individual abilities, skills and knowledge. An individual should have an access to knowledge and cultural heritage and an opportunity to fulfil oneself through education, research and creative activity. Work time spent on these activities will be recouped many times over. A far-seeing employer will also try to provide the employees with such forms of recreation that contribute to their personal development. An individual, whose potential and talents are fulfilled, will bring maximum benefit to society in general, and to a particular business. V. State, society and business must take joint care of the citizens quality of life especially of those who cannot earn their living. Economic activity is a socially responsible type of activity. The lack of effective measures of social protection will result in the self-destruction of a national economy. An employee with no prospects of having a decent size of pension, deprived of access to education, medical and social insurance services will never perform his work with joy and satisfaction. The lack of social support will make him look for by-work, which will adversely affect his performance in primary employment. The purpose of by-work is social survival rather than conscientious and constructive endeavour. Disability for such employees amounts to the ultimate loss of everything. By contrast, a persons confidence in the future creates the required conditions for professional growth and allows to build a long-term development strategy of a company. Employees should have opportunities to responsibly participate in management in accordance with their level of professionalism and education, so that they can feel they are partners who share the fate of the common cause. Employers, including the government, should bear public responsibility for their participation in social and retirement insurance schemes. The state is responsible for the life, health and human dignity of the aged, the disabled and disadvantaged children. It must not only help those disabled but also create conditions for charitable activities of businesses, religious and social organizations and individuals. A societys degree of welfare directly depends on its attitude to the disabled and elderly people. Allocation of a certain proportion of profit for the support of the aged, the disabled, disadvantaged children must be a rule for any profitable business, as well as for any well-off employee, including hired workers. Businesses must pay special attention to pensioners and disabled people, who contributed their labour to their welfare. By recognizing their current and past labour services, the employer reconciles the past and the present and reinforces success of the business. VI. Work should neither kill nor cripple employees. Creating proper labour conditions and ensuring strict compliance with safety measures at workplace are crucial responsibilities of employers, including the government. However, employees must also take safety rules seriously; they must not tolerate negligence and alcohol drinking, especially in operating dangerous machinery. An employee should remember that his or her irresponsible performance of work may threaten other peoples lives and health. Labour for a hired worker is a source of means of subsistence. That is why ungrounded dismissal, low pay, delayed or incomplete pay put him on the verge of survival, while an employers careful attitude towards the labour, life and health of the employees is beneficial both for him and the hired workers. Entrepreneurs should reject unlawful methods of doing business based on violence and threats of force. A desire to achieve success by all means, disdain for the life and health of others is both a crime and a vice. VII. Political power and economic power must be separated. Participation of business in politics and its influence on public opinion should be transparent and open. All the financial assistance that the business community renders to political parties, NGOs, mass media must be made public and controllable. Covert assistance of this kind is to be subject to public condemnation as immoral. Private mass media must report on the sources, sizes and use of these funds. Production or entrepreneurial structures, partially or fully government sponsored, must not demonstrate their political preferences. There is no room in economy for corruption and other crimes. It is unacceptable to illegally use government bodies in economic competitive activity and in the settlement of economic disputes. Business must defend its interests in relations with the government in a way that is legal and open for public control. Individuals and structures convicted of grave crimes, especially those involving corruption, must be considered unacceptable as business partners and members of business communities. An ethically responsible business should have nothing to do with traffic in people, prostitution, pornography, medical and spiritual quack practices, illicit traffic in weapons and drugs, political and religious extremism. VIII. By appropriating others property, handling common property in a careless way, holding back employees wages, deceiving partners, a person breaks ethic laws, causes damage to society and himself. The state, entrepreneurs, employees and all citizens must handle common and any other property with care. The habit of stealing from the state, ones neighbour and company staff, and damaging their property must be condemned and done away with. Those who unlawfully take away others possessions are to be subject to public shame. Cases of embezzlement from business partners, robbing them of the negotiated share of common profit must be made public knowledge and entail sanctions on the part of the business community. One of the forms of embezzlement is an unfair distribution of the fruits of labour among partners and employees. Society should not be divided into the super-rich and super-poor. Production and other types of economic activities should not cause irrecoverable damage to the environment, which belongs not only to those living on the Earth at the present time but also to the future generations. The natural resources that are necessary for people today but cannot be restored in the future must be exploited reasonably, taking into the account future requirements, and, if possible, should be replaced with renewable resources. The environmental performance of all businesses must be transparent and open to public control. Participation in projects aimed at environmental protection, introduction of resource-saving and waste-free technologies is a vital task of the business community. An entrepreneur should always bear in mind that tax evasion amounts to embezzlement from orphans, elderly and disabled people and other disadvantaged groups. Transferring part of the incomes in the form of taxes to societal needs should not be viewed as a burdensome duty, often performed only reluctantly, but as an honourable and commendable task. Defrauding of incomes, illegal export of capital amount to robbing ones own fellow citizens. Employers rob their workers if they do not pay them adequate wages, thus throwing them into abject poverty and bitterness, depriving them of the joy of labour. When defining the size of remuneration or the share of profit to be allocated for wages payment, employers must be guided by the principle of fairness and not the standards of the hard past or the examples of the poorest countries. It is unacceptable to take advantage of the miserable position of people who are ready to work for a low wage in order to earn their daily bread. Remuneration of labour cannot fall below the subsistence level. It should allow an employee to not only have proper nutrition, but also purchase required consumer goods, raise children and provide for housing. Employers, who fail to pay their employees, delay payment systematically, keep wages below the subsistence level must be subject to public condemnation. The state that exists due to its citizens contributions should estimate its share in public wealth proportionally. Reasonable taxes are a basis of effective and ethically responsible economy, in which the citizens can provide for public spending without feeling excessively burdened. IX. Competitive struggle should not involve deception, insults, exploitation of vices and instincts. Competition is one of the engines of economy. Monopolism amounts to stagnation and backwardness. Results of fair competition serve the interests of society. Competition puts its members into equal positions giving them the right of choice. Competition is morally justified if it does not ruin business relations. The most reliable partner in a business transaction is he who is confident of his counterparts integrity. The more credible a business is, the faster its profitability grows. Honesty is an investment in the future. In the competitive struggle, ethically flawed instruments are unacceptable. Thus, an entrepreneur should not insult competitors in public, spread false or questionable information about business partners. Advertisement containing outright lies, manipulating sex instincts, promoting alcohol drinking and smoking, exploiting emotional immaturity of children and teenagers must be viewed as immoral and thus must be rejected by the business community. Advertisement must not insult peoples religious and ethic feelings. X. Due respect must be paid to the institute of property, the right to own and dispose of personal holdings. It is immoral to feel jealous of others prosperity and encroach on their property. Ungrounded expropriation of property undermines economic stability and peoples confidence in justice. Nationalisation of private property in only justified if the use of such property runs counter social interests and threatens peoples safety and lives. In any case, withdrawal of property must be carried out in a strictly legal way and with an adequate compensation. This must equally apply to government and public property. Illegal seizure of such property is almost always accompanied by the destruction of the national economy and the sufferings of millions of people. Privatisation is not an end in itself. Legal transfer of public property into private hands is ethically justified if it results in a higher quality of goods and services, lower prices, stronger economy, more dynamic, fair and harmonious society. Unlawful redistribution of property is a crime against society and a breach of the ethic code. A private person, who has seized property through fraud has neither legal nor moral right to be regarded as an proprietor. In such cases the government must enforce justice observing the law and its moral duty. |
| The state of the economy directly depends on the spiritual and moral condition of the individuals. Kindness, sensibility, spiritual maturity, industriousness, responsibility are the qualities that allow citizens to provide for themselves and be beneficial for their neighbours and the country. May it be so in Russia as it entering the 21st century. |
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| Leaders of all traditional religions of Russia have adopted the Code of Ethical Principles and Rules of Economic Activities. This important document was signed at the meeting of Russias Interfaith Council on December 9, 2004. Metropolitan of Smolensk and Kaliningrad Kirill, Chairman of the External Church Relations Department of the Moscow Patriarchate, stressed that the Code of Ethical Principles and Rules of Economic Activities is based on the Ten Commandments that are part of the doctrine of Christians, Muslims and Jews. Buddhists also supported the document since the Ten Commandments given to Moses by God on Mount Sinai fully reflect what in secular ethics is referred to as universal moral maxims. Hence, the document adopted by the Interfaith Council of Russia is equally relevant for people of all traditional religions practiced in the country. Members of the Interfaith Council of Russia voiced their hope that business people would give proper attention to this document and accept it as their ethical guidelines, which would contribute to the improving of the moral climate in economic relations. |
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