-Contributed by Kanak Dutta, Knowledge Buddy
Business ethics set the standard for how your business is conducted. They define the value system of how you operate in the marketplace and within your business. With legal scandals concerning insider trading and employee theft making the news, it is no wonder that businesses are increasingly giving attention to the ethical basis of their business and how to lead in an ethical way. While the examples above seem to be clear-cut breaches of ethics, many ethical dilemmas that are not so clear-cut are faced on a daily basis in business. In fact, there may not even be a “right” or “wrong” answer to the dilemma, but how you deal with it will says much about you and your business.
These decisions are often referred to as being in the “gray” area. They are not black-or-white, but could be argued appropriately either way.
Importance of Business Ethics in your company
There are definite advantages to owning your own business when you want to establish an ethics policy. Basically ethics come from the top. Without setting an example at the top, it is often difficult, if not impossible, to convince your employees that they too should be ethical in their business dealings. A well-defined ethics policy along with an outline of related standards of conduct provides the framework for ethical, moral behavior within your company.
What is the benefit of developing such a policy, you may be wondering. The benefit is higher employee morale and commitment that in most cases leads to higher profits. But higher profits should not be your motivating factor in defining your ethics policy.
