Running head: COLLIERS INTERNATIONAL'S CODE OF ETHICS: SYSTEM OF

Colliers International's Code of Ethics: System of Inquiry James K. Buchanan PHL 323 August 14, 2013 Matthew Friedman

COLLIERS INTERNATIONAL'S CODE OF ETHICS: SYSTEM OF

Colliers International's Code of Ethics: System of Inquiry Introduction The purpose of this system of inquiry is to refine, or possibly improve, Colliers Internationals Code of Conduct and Ethics policy. In order to suggest any improvement recommendations, we have to study the organizational structure of the company and values, discern the ethical system used, and determine staff responsibilities. Last, recommendations may be offered, along with reactions and effects, to help improve Colliers ethical atmosphere. General Statement and Mission Statement Colliers International is a global real estate organization with 482 offices in 62 countries, over 13,500 employees, and headquartered in Seattle, Washington. Its roots began in Vancouver, Canada, and date back approximately 115 years. Because of successful and prominent mergers, it is now comprised of six regional CEOs (in Asia; Australia; Canada; Europe, Middle East, and Africa [EMEA]; Latin America; and the United States) led by global President & CEO Doug Frye. Their mission statement is to integrate the resources of real estate specialists on a global level while guided by their core values: service, expertise, community, and fun. Type of Ethical System Colliers Internationals formal Code of Conduct and Ethics policy is a duty-driven ethical system. Unlike ends-driven ethics where the ends justify the means, a consequentialist approach, Colliers members and affiliates must adhere to all applicable laws that govern conduct, the means. Furthermore, their most important asset is their relationship and reputation with their clients. They state that every employee and related professional is obligated to protect that reputation and must abide by standards of honesty and integrity. In addition, Colliers

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International is part of a publicly traded company, FirstService, and must abide to new corporate governance legislation by the U.S. Sentencing Commission as well as the laws and regulations of other countries (Code of Conduct and Ethics, 2010). How the Code of Ethics Is Used According to their Code of Conduct and Ethics, all employees and related professionals must abide by standards of honesty and integrity. The Code provides ethical and legal guidance concerning behavior in multiple specific areas, such as financial reporting, respectful treatment of others, open door policies, press communications, confidentiality, conflicts of interest, and appropriateness of giving and receiving gifts. In addition, each Colliers member, from employee to CEO must exercise their part in being compliant with all laws and regulations governing the company as well as maintaining a culture of high ethical standards and a commitment to compliance. Employee Responsibilities Employees are to abide by all company policies, guidelines, and procedures. They are to be honest and not behave in a corrupt manner. Also, they are to relate to their supervisors any conflicts of interests or if they think one is possible. The reason for this is so that corruption does not evolve. One example would be if a realtor, or security officer, worked or was offered a position at a competing company or for a company where Colliers managed the building. The employee would be caught between various ethical dilemmas and their loyalties would be divided. Other employee responsibilities include not accepting bribes, relaying confidential information, and to display respect and dignity for other coworkers in the work environment. Accepting bribes may hinder the employees ability to make ethical decisions. Relaying

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confidential information, such as other employee or business records, for personal gains or to hurt the company, goes against privacy laws. Unprofessional and destructive behavior, such as sexual harassment or violence can affect the function and continuity of the work environment. It is the employees responsibility to report such behavior to their supervisor or to contact the ethics hot line. Management and Related Professionals Responsibilities In addition to adhering to the same ethical conduct for the employees stated above, management personnel (supervisors, managers, and senior managers) are to ensure and enforce proper behavior as stated in the Code. Their positions require more responsibility and in turn are charged with defining the culture of the work environment. For example, managers are to practice open door policy procedures. If an employee is concerned about unethical conduct occurring in the work environment, they are to be treated with dignity and respect by being confidential and not causing any fear for reprisal. Management personnel also have to follow guidelines when dealing with the press. Since they are privy to more confidential information than employees, they have to ensure that any information released does not compromise Colliers reputation. In addition to dealing with the press, management in financial reporting roles must ensure full, fair, accurate, timely, and understandable disclosure of information in reports and/or statements that are filed with the Company or FirstService and with all regulatory bodies (Code of Conduct and Ethics, 2010). Many successful financial giants have crumbled in the past because of financial fraud and have lost the publics faith and trust. Concerning consultants, agents, sales representatives or any other outside companies, Colliers will employ only honest, competent persons or businesses. In

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addition, they must agree to comply with all laws, regulations and Colliers policies governing conduct. Personnel Responsibilities - Above Senior Managers All other personnel above the senior level manager, including partners and global president and CEO Doug Frye must adhere to the same ethical guidelines as employees and managers. They are held to the highest standards. In addition, they are responsible for maintaining the ethical culture, both formal and informal, to ensure that the Code of Conduct and Ethics policy is always followed and updated, and to make certain that their organization is in line with their core values. Possible Modifications Colliers has an excellent code of ethics policy. However, codes of ethics are living documents. Meaning, they need to evolve in order to stay current with unethical trends. Furthermore, their Code of Conduct and Ethics policy was last updated in December of 2010. Ethics policies need to be revised every one to two years. If I were the CEO of Colliers International, I would first make the Code easier to understand because some people are not familiar with legal jargon. If it was easier to understand, then it would be easier to follow and remember, especially since this Code transgresses through many cultural (organizational and sociological) layers. Second, I would add a policy about the use of the Internet and social media. Visiting wrong websites can cause a virus to be downloaded onto the organizations servers and may wreak irreversible havoc by uploading or altering confidential information. Concerning social media, I would emphasize that social media can be a dynamic source of communication. However, any unethical behavior posted on these sites can hurt Colliers

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reputation and can have adverse effects on the workplace environment. Another idea is to incorporate the concept of ethical development. Not only should employees report unethical behavior, they should also know that ethical training is available and that positive suggestions or actions can be rewarded. Once the Code has been revised, I will send the rough draft to all Colliers members. This can be achieved through internal communications (email, newsletters, meetings, etc.), videos, and even attaching them to employee checks or paystubs. Along with the rough draft, I would attach a survey asking the staff of their opinion concerning the rough draft. This is because I believe in team building. Involving employees in making ethical changes reinforces positive organizational culture. Once the final draft is completed, I will have it posted on all of Colliers main and social media websites, have all employees sign it, replace the old Code in new-hire packets, and display it wherever employees are working (even as screen savers.) Reactions and Effects When employees are involved with the decision-making process, they will portray positive behavior. Moreover, the most important reaction to the change expected from employees and managers is that there would be more synergy and less cynicism. The effect of the new Code with help align organizational culture on all levels. Conclusion This system of inquiry shows that Colliers Internationals Code of Conduct and Ethics policy is a duty-based ethical system. It guides all of their employees and related professionals ethical behavior to maintain Colliers reputation between themselves and their clients in a very specific manner. Some recommended changes to the policy, such as adding Internet usage, social media, use of language, and involvement of employees with the decision making process,

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would have various positive reactions and effects to the organizational culture. But most importantly, these recommendations will help Colliers International stay current in the ethical environment and they will always be known as the organization that conducts business with honesty and integrity and will always have a great reputation and relationship with their clients.

COLLIERS INTERNATIONAL'S CODE OF ETHICS: SYSTEM OF

References Code of Conduct and Ethics. (2010, December). Retrieved August 10, 2013, from Colliers International: http://colliersbenefits.com/pdfs/NewHire/CodeofConductandEthics.pdf