07.11.06
Does It Pay To Be Ethical?
The majority of business owners would answer with a resounding “yes” and research appears to back that claim up as well. For example, The Institute of Business Ethics (IBE) conducted a research study, “Does Business Ethics Pay?” and found that companies displaying a “clear commitment to ethical conduct” consistently outperform companies that do not display ethical conduct.
Many may dismiss the relevance of ethics because “if you can’t measure it, you can’t manage it” and that may at first glance appear true. However, ponder this question: “What would be the loss of business if your reputation for quality and service were to suffer?” Chances are you couldn’t afford it.
While many companies have established a written ethics policy, you may not yet consider its relevance because you are just starting out or have no employees. Even so, there are several elements of ethical business practices that you can incorporate into your business-doings including:
Respect: Treat everyone you meet with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional courtesy and respect.
Trust: Realize that customers want to do business with a company they can trust. Businessess that incorporate trust as the center of their organization are always easy to recognize by a client. Trust involves a client’s ability to rely upon your character, ability, strength, and truth in business.
Open Minded: As the owner of your business, you want to continually improve and grow your business. In order to do this, you need to maintain an open mind. Never hesitate to ask for opinions and feedback from both customers and employees. Sometimes, you may not like what you hear, but you then have an opportunity to change.
Obligation: Take every opportunity to do everything in your power to gain the trust of a customer, particularly if something went wrong. If it’s in your power to correct things and make it right, do so with hesitation. Honoring all commitments and obligations are essential to continued operation.
Clearness: Review all printed materials from employee handbooks to marketing materials to ensure that they are understandable, precise and professional. It is critical that they do not misrepresent what you do and what you can deliver.
Sometimes, it may be difficult to determine whether or not you are behaving in an ethical manner. In situations like that, you may want to consider the simple, but to-the-point manner in which Abraham Lincoln gauged his approach to ethics. “When I do good, I feel good; when I do bad, I feel bad. That’s my religion.”
