business ethics for SMEs Minim Sumut SMEs Business Ethics The perpetrators of Small and Medium Enterprises

(SMEs) in North Sumatra (North Sumatra) were still minimal knowledge about the code of ethics in business so that the resulting product is difficult to penetrate foreign markets. And if it is satisfied the offender SMEs will have no trouble penetrating the overseas market. Associate Programme Development Advisor Indonesia Business Links, Johannes Lokollo bring it after Dissemination seminar Benefits Code of Conduct for the Perpetrators of SMEs, "To penetrate external markets, the offender must follow the requirements of SMEs that have been implemented globally. For example how the standards of workers, which also collects safety. All of that will impact on work productivity, "he said. Johannes convey some global requirements that cover working hours, compensation in the form of wages, health and safety, no child labor, no forced labor, freedom of association and the right to joint protection, environmental care, consumer protection, and consideration of the IPR. He continued, for in North Sumatra rarely SMEs are already implementing code of conduct. Even if there are implementing new since the last two years with the facilitation of the Indonesian Employers Association (Apindo). But for large companies, it has been applied since long. The importance of codes of ethics in business for SMEs is also recognized by the Chairman of the Indonesian Young Entrepreneurs Association (HIPMI), Said Al Idrus Aldy is also a tambourine SMEs. Said says this important socialization published at least once every three months by inviting SMEs. "Products of North Sumatra SMEs can be exported to overseas. Required for the export players a chance to read either time requirement beyond what was actually, "he said. Yanto Sidik Pratiknyo of LPPM explain, guide the conduct of business closely related to the company's business principles. In addition, he said, is also associated with the values adopted for the company, business ethics, trade competition, and social system management. Yanto said that if these five things are not implemented then the productivity of companies affected.

Analysis Code of business ethics is important for entrepreneurs as a guide in conducting its business to fit the rules. Especially when it comes to business development, the code turns out to be things that should not be overlooked. Therefore very unfortunate if the knowledge of the perpetrators of Small and Medium Enterprises (SMEs) in North Sumatra (North Sumatra) knowledge about the code of ethics in business is still minimal. By having a maximum knowledge about the code of ethics in business the perpetrators of SMEs will be able to read and export opportunities will have no trouble penetrating foreign markets. Recommendation Given the code of ethics in business is very important to understand and master the perpetrators of the activities such as socialization SME Code of Conduct for the Benefit of SMEs is important Perpetrators published at least once every three months by inviting SMEs. And for players who already mengatahui SME code of ethics in business is required to implement it. meaning of business ethics Meaning of Business Ethics Business ethics is a segment of applied ethics that tries to control and check the settings of moral and ethical company. She also explore how good or bad business entities to discuss moral issues and ethics and show what is wrong in their natural processes. It covers all aspects of the business - from production to administration, finance and marketing. This also applies to a variety of industries and can be descriptive or normative in the discipline. Business ethics is the application of general ethical business conduct governing patterns. norms of morality is the basis of the reference business in his behavior. The application of business ethics in entrepreneurship reflects the company's involvement of non value-driven social and economic value - which currently, has been greatly neglected. That makes the company in line with better players and make them contributive to sound business practices. As we all know, income prospects are more likely to overestimate the desire to most employers engaged in illegal, unethical transactions. This forced them to

cheat, lie, steal and deny others their right to double / triple the income or advanced. For example, the lack of influence of ethics can lead pharmaceutical companies to doctors lab reports about the side effects are top-selling drug. It can support gender bias in recruitment. And also can lead to rich companies to withhold benefits and wages of their workers. Although it is clearly inappropriate, it is a social and business issues that are still prevalent at this time planning business - thus emphasizing the application of ethics in business wise. As depicted in the film The Insider, starring Russell Crowe and Al Pacino, there are significant consequences of the lack of ethics in business procedures. To explain, ethical depravity has instigated sabotage many companies, trade unions, and lawsuits. In the extreme, has led to the closure and commercial decline. It has collapsed and government leaders and thousands of lives compromised. If present, the company must treat ethics as an important part of their daily operations. Given the purpose behind their existence, the role they play in society and their contribution to the world, companies are bound legally responsible for the welfare of their consumers through This is a good thing that many entrepreneurs are now better known for entrepreneurial business ethics. This saves the future from becoming a victim of past influences prosperous business community. If there is, we do not want to repeat our mistakes. Business ethics is currently taught in many institutions and there are also thousands of references are made available online. Thus, any prospective employer is authorized to implement it. We all must remember that as a businessman, it is part of our responsibility to conduct our business under the moral code of honor, seeking justice and promoting the good of all. t manfaa business ethics for the company COMPANY BENEFITS FOR BUSINESS ETHICS Today businesses already have awareness of the importance of Business Ethics in business operations. Even in the development of Business Ethics is no longer a burden that had to be carried out but the company has become one of the

company's development strategy. Because the goal of the firm can be defined as an attempt to "Maximize the welfare of the owner within the period of the long term through the activity of selling goods and / or services. A concrete example of the benefits of business ethics as a strategy for enterprise development such as Social Responsibility Company is considered to provide benefits to the company in the form of profitability, a more solid financial performance, lowering the risk of clashing with the surrounding environment, enhance corporate reputation, etc.. Business ethics for the company, the company's ethical policy concerns associated with the difficulties that can arise (perhaps pernahtimbul in the past), such as conflicts of interest, relationships with competitors and suppliers, accept gifts, donations and so forth. Background of making business ethics is a powerful way to institutionalize ethics in the structure and activities of the company. If the company has its own ethics, has several advantages compared with companies that do not have it Benefits of Business Ethics for the Company: 1. Can enhance the credibility of a company, because ethics has been used as corporate culture. This is especially important for large companies where the employees do not all know each other. With the ethics of business, internally all employees are bound by the same ethical standards, so it will mefigambil policy / decision of the same kind of cases that arise. 2. Can help eliminate the gray area (gray area) in the field of ethics. (Acceptance of commission, the use of child labor, the company's obligation to protect the environment) 3. Explain how companies assess their social responsibility. 4. Provides for the company and the business world in general, likely to selfregulate (self regulation) 5. For companies that go public have been able to benefit form the increased confidence of investors. Also due to increases in stock prices, then it can attract investors to buy shares in the company.

6. Can improve competitiveness (competitive advantage) companies 7. Building a corporate image / positive image, and in the long run can maintain the viability of the company (sustainable company). Perusahhan business ethics has a very important role, namely to establish a solid company and has a high competitive dsaya and have the ability to create high value, we need a solid platform. Usually starts from strategic planning, good organization, the system is transparent procedures are supported by a reliable company culture and corporate ethics program consistently and consistently. Therefore, the company's action comes from individual human choices and actions, indivdu-are the ones who should be seen as the main guardian of moral obligation and moral responsibility: individual human beings are responsible for what the company because the company's overall actions flow from their choices and behavior. If the company acted erroneously, a mistake was caused by the choice of actions performed by individuals within the company, if companies act morally, it is caused by individual choices within the company to act morally. business ethics has principles in this regard relates to the various attempts to combine a variety of basic values (basic values) within the enterprise, so that the various activities undertaken to achieve the goal. More clearly, the mechanism goes as follows. "Maximizing the welfare of the owners in the long run", associated with a relatively long time dimension and sustainability concerns. It requires the existence of "trust" or "mutual trust" (trust) from various parties related to the company (stakeholders). The phrase "well-being of the owner" is a derivation and a manifestation of "property rights" (ownership) arising from the award (respect) to "private property" (property rights). It must be believed that it is essentially the practice of business ethics will always benefit the company well for long-term or medium term because: Ability to reduce costs due to have averted the possibility of friction, both internal and with external companies. Ability to improve worker motivation. Protecting the principle of freedom of trade

 Ability to enhance competitive advantage. Inevitably, the unethical actions taken by the company will provoke retaliatory measures of the consumer and society and will be very counter productive, for example through the movement of boycott, ban circulated, operating restrictions and so forth. This will reduce the value of sales or value of the company. While the company that upholds the values of business ethics, in general, including companies that have a high satisfaction rating to work well, especially if the company does not tolerate unethical acts, such as discrimination in remuneration or career path. It should be understood, qualified employees are the most valuable asset for the company. Therefore, companies should be as much as possible should retain its employees. To facilitate the implementation of corporate ethics in daily activities then the values contained in business ethics should be poured into the corporate management by: Pouring of business ethics in a code of ethics (code of conduct) Strengthen the surveillance system Conduct training (training) for employees on a continuous basis. basic meaning of business ethics MEANING OF BUSINESS ETHICS Code of conduct is a translation company values and business ethics in conducting business so that it becomes a guide for an organ company and all employees of the company. The guidelines include behavioral guidelines on conflicts of interest, giving and receiving gifts and donations, regulatory compliance, confidentiality of information, and reporting of unethical behavior. Three basic meaning of business ethics, namely: from the viewpoint of economics, law and ethics. 1. Economical point of view. Business is the economic activity. What happens here is that the interaction

between producers / companies with workers, producers and consumers, producers and manufacturers within an organization. Between human activity is aimed to make a profit therefore becomes economical activity. Quest for profit in business is not unilateral, but is done through interactions involving the various parties. From the economical point of view, good business is a business not only profitable, but also ethical and quality business ethics. 2. Moral point of view. In business, profit-oriented, are very reasonable, but do these benefits at the expense of others. Not all we can do should be done as well. We must respect the interests and rights of others. Deserve attention, that with it we are not harmed, because it respects the interests and rights of others that also needs to be done for the sake of our own business. 3. Legal Viewpoint You can be sure that business activity is also bound by the "Law" Commercial Law or Business Law, which is an important branch of modern jurisprudence. Law and in practice many problems arise in a business relationship, at national and international level. Such as ethics, law is also a normative standpoint, because it determines what to do or not to do. In terms of norms, the law more clear and definite than ethics, because the law is written black on white and there are certain sanctions when violations occur. Even in the days of imperial Rome, there is famous saying: "Quid leges sine moribus" which means: "what does the law if not accompanied by morality" Highlights Business Ethics 1. Increasing professionalism in the field of information technology 2. Organization and professional code of ethics 3. Cyber Ethics (ethics of using the internet) 4. Business Ethics & E-commerce 5. Copyright law and protection against computer 6. Free software and license 7. Cyber Crime / review regulations on internet crime

Faculty of economics Task management of SMEs Regulation and business ethics

In stacking by: indaryanto (10418244021) Prodi: pend international accounting