Doing The Right Thing in Business

In Modern Busines conduct, we’ve all noticed one outstanding subject that always comes to mind during engagements.

One of the questions that arises commonly is: “Is this the right way?”

The moment it comes to that, we are officially engaging in the topic of ethics.

For the past decade or so, organisations have adjusted their business conduct to not merely focus on the bottom line, but also to conduct business in the most ethical way.

Often, the concept of ethics is compared with morality, but they are different concepts.

According to the Oxford English Dictionary, ethics is defined as the standards of right behaviour.

Ethics is about what is good or right in human interaction.

The key focal points of determining ethics are the self, the good, and the other.

Ethical behaviour results when one does not merely consider what is good for oneself, but also what is good for others.

It is very important that each of these three pillars is included when making ethical decisions or defining ethics.

Corporations are some of the key business operators, which come with great responsibility as they are always in the spotlight regarding the way they conduct their operations, especially in a highly regulated environment.

Having policies in place which align with ethical business practice becomes mandatory in an ever-transforming market to safeguard a company’s reputation and protect its image.

Day-to-day decisions are made in corporations on procurement, sales, marketing, remuneration, hiring and client services, and these are some of the areas where ethical conduct needs to be practised.

To assess whether a decision is ethical, several questions need to be addressed: Is it legal? Does it meet company standards? Is it fair to stakeholders?

Can it be disclosed outside the corporation? Regarding legality, businesses are required to operate within the legal limitations of their jurisdiction.

Ethical conduct requires that any action should be first and foremost legal.

If the response to the legality of the act is yes, then we could conclude that it is indeed ethical.

Every corporation has set standards to which it holds itself.

When a decision is bound to be made, it should be done in line with these standards.
Ethical conduct entrusts that all parties are treated fairly and equally.

Finally, one must ask if the decision can be disclosed outside the corporation. If the answer is no, we would conclude that the decision was not ethical.

A good test is to imagine the decision being in the headlines of a newspaper.

If you would be uncomfortable with that, the decision is likely unethical.

In business, the mantra that ‘the business of business is business’ cannot be the only standard followed.

Ethics create an environment in which considerable decisions are made, limiting the possible negative impact businesses may impose on employees, clients and stakeholders.
– Freddy Tyapa

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