Brad Hurlock

Web Design & Marketing Sales for Addison Technologies.

Top Essential Ethical Practices for Your Business That You Need to Know

Brad Hurlock

Web Design & Marketing Sales for Addison Technologies.
6/25/2020

Business ethics can significantly impact profits, so businesses need to know everything about this concept. Ethical business practices play a huge role in brand reputation and employee productivity. With the way social media has taken over lives, it's easy to find any unethical tracing from a company and have it exposed.

Acting morally is important to consumers and will have an impact on whether or not consumers do business with a company. There are different types of business ethics including personal responsibility, leadership responsibility, and corporate responsibility.

Personal Responsibility

Ethical business practices include personal responsibility. An individual will personally live by an ethical code regardless of their employment.

Good business ethics involves good people's ethics. Everyone has their own set of moral standards that should be brought into the workplace.

Leadership Responsibility

The leadership in business must perform with a standard of ethics. Ethical behavior in business starts from above and trickles down. If you are in a leadership role in your business, it is most important for you to take ethical responsibility.

Managers represent the organization publicly so their behavior will reflect on the company. The employees also look to these leaders for guidance.

Leadership characteristics include:

  • Justice
  • Respect for Others
  • Honesty
  • Humane
  • Value Driven
  • Encourages Initiative
  • Values Awareness
  • No Ethical Violation Tolerance

Corporate Responsibility

At the macro level, corporations hold a responsibility to act ethically for their stakeholders and the public. This is one of the ethical practices in business that can impact public image and profitability.

People hold business at a high standard from a legal and moral standpoint. Now more than ever, people expect companies to do good within society. This can be a reason why people do business with a certain company.

Ethical Business Practices

As a business owner, it is important to understand ethical business practices. These practices are a great way to increase public trust and approval, boost profits, and do things legally. Some examples of ethical business practices include:

  • Trustworthiness and Transparency
  • Respect for Employees
  • Respect for Customers
  • Accountability
  • Law Abiding
  • Honesty
  • Integrity
  • Loyalty/Keeping Promises
  • Being Fair
  • Morale

Ensuring Ethical Business Practices

Ethical policies have to be done by everyone in the company to keep a great reputation. As a business owner, you want your employees to act accordingly. Personal and business ethics will affect legal standing, brand reputation, and profitability.

Maintaining ethical practices can be simple. Here are ways to ensure ethical practices:

  • Start with Management
  • Use Written Out Ethical Guidelines
  • Train Employees on Ethical Standards
  • Encourage the Reporting of Ethical Violations
  • Reward Ethical Behavior
  • Punish Unethical Behavior
  • Incorporate Business Ethics into Workplace Culture

Concern Yourself With Business Ethics

Business owners should concern themselves with ethical business practices because it can make or break the company. Without being ethical, companies cannot expect to compete at a national or international level. They also won't be able to compete with competitors that took this initiative.

As a business owner, you must concern yourself with business ethics to keep your company profitable.