Ethics

In a highly competitive environment, do business ethics still exist If you are working for a multinational company, or have your own business, facing daily ethical decisions is normal.  As mentioned in the article Business Ethics- It Takes the Lead in Enforcing Ethics written by Stephanie Stahl, we come to a point where we need to decide whether or not to be honest to our customers, clients, competitors, and even with co-workers. At the end of the day, these are all about ethics.

All businesses have their own policies and guiding principles. These may or may not be written.  Sometimes these are followed.  Most of the time, these are just ignored.  What does it take to practice business ethics  It boils down to personal values and standards. It is the responsibility of an organization to promote business ethics among its employees. These are fundamental values and beliefs of a company, which should be properly cascaded and practiced.  It is important for employees to fully understand the code of business principles of the company they are working for.  This way, it will be easier for them to perform their daily tasks.  When faced with a difficult situation, having business ethics will make the decision making process simpler.

How Business Can Be Good
Business ethics is not just for the employees and stakeholders welfare, but for the success of an organization as a whole.  Jeffrey Seglin, writer of How Business Can Be Good, cited Johnson and Johnson as an example.  The company recalled 31 million bottles of Tylenol from stores after eight consumers died from cyanide-laced capsules. This incident cost them 240 million, and cut their profits of 5 billion into half. The tampering of the product was not their fault, but Johnson  Johnson acted on this problem fast, even before completing the investigation and information needed to prove the cause of the Tylenol case.  After much study, a new design was launched and Tylenol got back in the market.  What do we learn from this case  The quick response of Johnson  Johnson saved Tylenol brand and the lives of many of its consumers. This proactive act was appreciated by the market and put the company into a good light in the eyes of the consumers. What Johnson  Johnson did showed that they are aware of their corporate social responsibility.  They faced a big ethical decision and made the right move.  They put their consumers first before their profits.  In the end, this resulted into significant goodwill from customers.

We face ethical decisions in our daily lives.  Most often than not, these are not easy decisions to make.  It takes a lot of maturity, strong values and sense of responsibility to act morally.  Today in the modern business world, a strong foundation of values and ethical model should be in place.  When faced with a moral or ethical issue, putting priority into the people who will be greatly affected should come first.  Ensure that the decision will be beneficial to the society or to the majority, and not to your political relationship or status.  The Four Way Test of the Rotary Club is a good ethical model to follow.  Of the things we think, say or do, ask the following questions 1. Is it the Truth 2. Is it Fair to all concerned 3. Will it build Goodwill and better Friendships 4. Will it be Beneficial to all concerned  By having these questions as guide before deciding on a simple issue, or ethical problem, making a good decision is within reach.