Making Ethical Business Decisions It seems like almost every week there’s a new scandal, whether in the NFL or in a high-profile business, for one reason or another. Information comes out, gets leaked, people make canned statements and try to clear the air surrounding whatever issue is currently in society’s mind. Turns out, though, there’s a relatively easy way to avoid controversy and keep your business’s name clean: make ethical decisions. The Upsides The pros of keeping your business ethical are enormous. Here are just a few examples: Less risk of fines or legal action – If you do what you’re supposed to be doing and don’t cover things up, it’s much less likely that you’ll misstep and find yourself being slapped with a fine or legal action of some kind. Better branding – Companies that practice good ethical behaviors tend to be known as good companies. That kind of reputation sticks to your brand. People actually enjoy working with or buying from businesses that they know won’t stick them for extra money. Read about some of the world’s most ethical businesses. Talent will stick around – Employees today aren’t just looking for a job to earn money and climb the ladder. They’re looking for a place they can work where the business and its employees are like-minded—that they all care about similar issues. You aren’t going to keep good, talented employees with shady, underhanded schemes. You’ll keep them with open, honest, ethical decisions. Customers will, too – As mentioned above, people enjoy doing business with businesses they trust. They’ll be loyal to you because they like the way you do business. Along with that, studies have shown that businesses that adhere to ethical codes of conduct tend to do better financially, as well. Being Ethical Some might argue that ethics are something you’re raised with—that your ethical point-of-view may be vastly different than someone else in another position. But of course, ethicsare taught in classrooms across the country, and we as a society have a pretty general list of ideas that are widely considered an ethical code. So how do you stick to it? Here are a few ideas to get you started: Ethical Code of Conduct Simply write out a code of ethics: what you believe is right, what you believe is wrong. Before you make any serious business decision, consult it. Are you living up to your own code of ethics? Bring in your employees or shareholders to contribute to the code. Get varying opinions. Ask questions. Consider the Impact Your decisions aren’t usually just affecting you. They’re also affecting your employees, your family, your shareholders, your customers, your partners…the list goes on. What impact would an unethical decision have on all of those people? Could a partner’s business be ruined for being associated with an unethical business? Understand Rules and Regulations Different industries are governed by different rules and regulations. Many of these regulations are put in place to encourage businesses to practice ethical behaviors—but companies can still act within the law while being unethical. Go above and beyond these regulations. Better yet, write up your own rules and regulations that you govern yourself by, well above those set by the governing bodies.
Posted on: Thu, 18 Sep 2014 00:31:20 +0000