This morning, I read about a company that uses online auctions to defraud customers. Last week, I inquired about an ethics complaint in which a business coach betrayed a client’s confidentiality. And recently, a doctor was convicted of insider trading based on patient information, a violation of both his business ethics and professional ethics.
Business ethics is the key to profits. If customers don’t trust you and your business ethics, they won’t do business with you. Would you buy from a company you don’t trust? Of course, no!
Business ethics has become a hot topic. There are often ethical conflicts between making money and doing the right thing. There can be dilemmas about doing what’s best for your employer, what’s best for your own career, and what’s best for the client. Business ethics is about negotiating these minefields. Here are my top 10 principles for positive business ethics:
1. Business ethics is built on personal ethics. There is no real separation between doing the right thing in business and playing fair, telling the truth, and being ethical in personal life.
2. Business ethics is based on fairness. Would a disinterested observer agree that both parties are being treated fairly? Are both parties negotiating in good faith? Does each transaction take place on a “level playing field”? If so, the basic principles of ethics are being met.
3. Business ethics requires integrity. Integrity refers to completeness, reliability, and consistency. Ethical companies treat people with respect, honesty and integrity. They stand by their promises and keep their commitments.
4. Business ethics requires telling the truth. Gone are the days when a company could sell a defective product and hide behind the “buyer beware” defense. You may sell products or services that have limitations, defects, or are out of date, but not as new, first-class merchandise. The truth in advertising is not only the law, business ethics require it.
5. Business ethics require trustworthiness. If your company is new, unstable, about to be sold or going out of business, ethics requires that you let customers and clients know. Ethical companies can be trusted to be available to solve problems, answer questions and provide support.
6. Business Ethics requires a Business Plan. A company’s ethic is built on its image of itself and its vision of the future and its role in the community. Business ethics does not happen in a vacuum. The clearer the company’s plan for growth, stability, profit, and service, the stronger its commitment to ethical business practices.
7. Business Ethics is applied Internally and Externally. Ethical businesses treat both customers and employees with respect and fairness. Ethics is about respect in the conference room, negotiating in good faith, keeping promises, and meeting obligations to staff, employers, vendors, and customers. The scope is universal.
8. Business ethics demands a profit. Ethical businesses are well managed, have effective internal controls, and clear expectations for growth. Ethics is about how we live in the present to prepare for the future, and a business with no profits (or a plan to generate profits) is failing to meet its ethical obligations to prepare for the future well-being of the company, its employees and customers. .
9. Business ethics is based on values. The law and professional organizations must produce written standards that are inflexible and universal. While they may talk about “ethics”, these documents are often prescriptive and refer to minimum standards. Ethics is about values, ideals and aspirations. Ethical companies may not always live up to their ideals, but they are clear about their intentions.
10. Business Ethics comes from the Boss. Leadership sets the tone, in every area of a business. Ethics is fundamental to the operation of a company or it is not. Executives and managers lead the way or communicate that cutbacks, disrespect, and disrespect are acceptable. Line people will always move up or down to the level of performance they see modeled above them. Business ethics starts at the top.
Ethics has to do with the quality of our lives, the quality of our service, and ultimately the bottom line. A dissatisfied customer complains to an average of 16 people. Treating employees, customers, suppliers, and the public ethically, fairly, and openly is not only the right thing to do, but ultimately the only way to stay in business.
