Ethics & Integrity
A cornerstone of SCIP’s value proposition and should be a foundational edict for any Intelligence model. Ethics and Integrity of CI efforts and every other form of intelligence Best Practices as well as decision making contributes to the credibility, safety, fairness and value of an organization – and its people!
SCIP Code of Ethics
Our Code of Ethics is the most widely embraced set of guidelines for ethical behavior for competitive and market intelligence activities for driving businesses. The Code is not a corporate policy; it contains guidelines by which companies and practitioners can set their own standards along the ethical spectrum.
As is:
- Elevate the Profession : To continually strive to increase the recognition and respect of the profession.
- Always in Compliance : To comply with all applicable laws, domestic and international.
- Transparent : To accurately disclose all relevant information, including one's identity and organization, before all interviews.
- Conflict-Free : To avoid conflicts of interest in fulfilling one's duties.
- Honest : To provide honest and realistic recommendations and conclusions in the execution of one's duties.
- Act as an Ambassador : To promote this Code of Ethics within one's company, with third-party contractors and within the entire profession.
- Strategically Aligned : To faithfully adhere to and abide by one's company policies, objectives and guidelines.
Ethics FAQs
SCIP greatly appreciates the support of Cliff Kalb, Dale Fehringer, Joe Goldberg, Tim Kindler, Richard Horowitz and Craig Fleisher in creating these FAQs. All have served in SCIP senior leadership roles, and are members of the Council of CI Fellows.
What is the SCIP Code of Ethics and what does it mean?
The SCIP Code of Ethics is a set of guidelines for ethical behavior for CI companies and practitioners which SCIP expects its members (and third parties hired by its members) to adhere to. The Code is not a corporate policy; rather the Code contains guidelines by which companies and practitioners can set their own standards along the ethical spectrum.
How do corporate attorneys explain competitive intelligence in their codes of conduct?
Corporate attorneys, sometimes in combination with ethics and compliance staff, often develop a code of conduct for the overall organization. Corporate attorneys should be familiar with what CI teams do and how they do it, and there should be a close working relationship between the CI teams and corporate attorneys. The two groups should work together to understand the business value of competitive intelligence, and to assist with developing and updating language that appropriately balances the risks and benefits of competitive intelligence activities for the organization.
Can I hire private investigators to research principals of a company?
It’s permissible and even advisable to create a business profile of the principals of competitor organizations. While this practice itself is ethical and legal, it should begin with the wealth of information that is available in the public domain (e.g., interviews, speeches, articles, etc.) Using a private investigator or consultant to uncover additional information is ethical and legal, providing that they follow your firm’s corporate code of conduct, the SCIP Code, and all applicable local laws.
Is mystery shopping ethical in the retail space or any space?
Yes, provided that it does not violate any retailer-specific regulations (such as no photography).
Is it permissible to post a job that you don't have any intention of filling because you know employees from competitor companies will apply, and can you apply for jobs at competitor companies that you have no intention of taking in order to learn about the competitor?
These activities would be considered unethical by most CI practitioners and may violate your organization’s code of conduct and local laws. They should be avoided.
What are the limitations regarding information you can get from newly-hired employees that used to work at a competitor?
Employees who formerly worked for competitors can be valuable sources of competitive intelligence. However, employees owe a duty of confidentiality to their former employers. Therefore, before you interview employee(s) who previously worked for a competitor, you should inform them that you do not want them to tell you confidential information about the prior employer. If an employee reveals information that appears to be confidential, do not use it and report the matter to your management or legal counsel.
What does it mean when firms hire former government operatives to direct their intelligence operations?
Corporate attorneys, sometimes in combination with ethics and compliance staff, often develop a code of conduct for the overall organization. Corporate attorneys should be familiar with what CI teams do and how they do it, and there should be a close working relationship between the CI teams and corporate attorneys. The two groups should work together to understand the business value of competitive intelligence, and to assist with developing and updating language that appropriately balances the risks and benefits of competitive intelligence activities for the organization.
What about a report of a company buying or otherwise obtaining a password to a competitor's site and researching its pricing structure and offerings?
Obtaining a password to a competitor’s site without authorization, for any reason, is illegal and therefore violates SCIP’s Code of Ethics. Illegal activity also violates most organization’s internal code of conduct.
Can I receive confidential records at a trade show or by any other means?
Receipt of confidential records at a trade show or by other means may raise legal questions. If such information is received, it should be turned over to your management or legal staff with an explanation of the circumstances under which it was obtained.
How does one research patents filed by competitors across an industry spectrum?
There are a variety of patent searching services available that can be used to look for patents. Patents are public records, and as such are expected to be reviewed by competitors. This can be done yourself, or by specialists who are trained to use the services and know what they’re looking for.
I've seen news reports discussing a private investigator researching a particular company. They're doing their investigation using the standard online sources, but they also looked at files that had been discarded by the company. Is this a proper activity?
Using confidential information that has been discarded by a competitor, regardless of how it was obtained, may raise ethical questions. Confidential information obtained in an illegal manner is a clear violation of SCIP’s Code. In practice, using a competitor’s confidential information would violate most organization’s code of conduct. You may want to apply the “red face” test to this and similar situations; i.e., how would the company feel if this behavior was attributed to them in a newspaper?
The Wall Street Journal reports that employees frequently call their competitors and pose as a customer or a student to seek information. Is this a valid activity?
SCIP’s Code expects that its members must accurately disclose all relevant information, including one’s identity and organization, prior to all interviews. Depending on the jurisdiction, this type of misrepresentation may be illegal.
Can I hire a firm to tap phone calls of competitors or to hack their email?
These are serious crimes in many countries and are prohibited for any reason.
How does Competitive Intelligence differ from corporate spying?
CI is the process of legally and ethically gathering and analyzing information about competitors and the industries in which they operate in order to help your organization make better decisions and reach its goals. It should be done within the ethical boundaries established by SCIP, your organization, and your personal standards. Corporate spying often implies illegal activities, such as bribing or hiring employees to divulge confidential information.
