Ethics is a set of concepts and principles that guide people in determining what behaviors are right or wrong. It is all about doing the right thing.
Business ethics considers setting proper business policies and practices regarding potentially controversial issues at the workplace, e.g. against bribery, bullying or discrimination. It also describes what is acceptable and unacceptable behavior for the organization towards the outside world. Socially responsible companies always act morally towards the society and natural environment.
When it comes to buying products, I take business ethics very seriously into consideration. Although I am not a shopping animal, I love buying from ethical companies because of trust. In order to trust a new company, I try to find out whether that company acts morally correct towards not only me, but every single stakeholder including customers, employees, shareholders, competitors, natural environment, local community, etc.
Unfortunately, we hear quite frequently about misconduct in the business world. That is why, I also pay close attention to ethical behaviors of managers, directors and the CEO, as well as their reasons behind making certain decisions, e.g. toward waste management or employee welfare. I avoid buying products from companies which do illegal things, are immoral or act irresponsibly. I strongly encourage you to do the same.
Acting ethically as a company has a lot of benefits.
Morally good organizations have positive corporate image and reputation giving media no reasons to report on scandals because there are none. Socially responsible companies are also environmentally friendly, therefore do not waste too much money on fancy packaging.
I always buy products because of their functionality and do not pay much attention to packaging.
Ethical business behaviors
How to act ethically as a company?
✔ Reduce pollution by using more environmentally friendly materials.
✔ Dispose waste in an environmentally friendly way.
✔ Increase recycling of waste materials in the production process.
✔ Offer employees sufficient breaks during work hours.
✔ Trade fairly with less economically developed countries.
✔ Use organic ingredients or agricultural products rather than genetically modified crops.
✔ Do not emphasize making profit over the well-being of your employees or their safety.
✔ Encourage employees to do voluntary and charity work.
Unethical business behaviors
How to act unethically as a company? I hope you will never do that!
✘ Do not pay employees on time, neglect employee welfare, offer poor pay and working conditions.
✘ Keep a blind eye on extravagant expenses of directors and managers during business trips.
✘ Damage the natural environment by polluting the air, water and soil, and deplete non-renewable resources.
✘ Offer products which are harmful for the body or have harmful side effects, e.g. tobacco, alcohol, gambling, tattoos, etc.
✘ Force suppliers to deliver raw materials in lower prices by threatening to switch to another supplier.
✘ Do not provide accurate information and labeling to prevent customers from making more informed decisions.
✘ Do not provide fair remuneration and training opportunities to all your employees.
Should all companies act ethically?
I refuse to accept the fact that companies exist only to generate profits, and if they help the society, they do it by accident through providing employment opportunities to the local community by paying salaries.
In my opinion, each and every company in the world should follow good ethical practices in order to achieve a wide range of corporate benefits in the long-term, e.g. increased customer loyalty, retaining the best employees, fewer legal issues and good public image.
Neither I am a fan of companies being socially responsible only, if those good actions help to become more profitable, as I consider this approach as dishonesty. I believe that every organization should place ‘making meaning’ in the core of its actions. Every company’s strategy should evolve around changing the world to be a better place. That is why I run Super Business Manager in the altruistic way – improving the businesses and the society by helping CEOs, directors, managers, business owners, investors and entrepreneurs to make better decisions.
All in all, companies which act ethically will have much greater chance of achieving longevity and profitability. Those are the companies I love purchasing high-quality products from.
