I’ve been making my way around Atlanta speaking to various groups on the subject of business ethics. My talk is entitled Business Ethics – Why the Bother? In it, I make the case that a company can benefit in multiple ways from adhering to high ethical standards. Indeed, I believe it is well worth the bother to be known in the marketplace and society at large as an ethical entity. After all, with the mere summoning of Google and the avalanche of information that can follow, who wants to do business with a shady, ethically challenged company?
Making my way from writing a novel to speaking on business ethics isn’t quite a straight line, is it? While my novel Dare Not Blink is a business thriller, it also deals with ethics. The book’s protagonist, Dave Paige, is a business executive of high character who becomes embroiled in a nasty power struggle with others of another, lesser sort. So does the ethical guy win in the end? Well, for no less than the sake of the American system of capitalism, let’s hope so.
I exaggerate, I confess. That a novel would have a discernible bearing on the survival of American free enterprise is a bit of a stretch, to be sure.
But in real terms the idea of the ethical guy winning in the end has everything to do with our free-market system either flourishing or fading away. Americans are fast losing confidence in many of our long-standing institutions, to include government, the press, the public school system, the church, and business. Some in the political class, who themselves are regarded in a now famous survey as only slightly more preferable than cockroaches, have made a sport of bewailing the behavior of many business leaders, especially those on Wall Street. The criticism is not entirely without merit, in all fairness.
That’s why I’m speaking up. The vast majority of the men and women I dealt with in my business career were virtuous, conscientious people who tried to do the right thing for their customers, employees, and suppliers. Of course they weren’t perfect, but they were guided by an ethical code that drove them to do the right thing. They are the good and righteous nucleus, the backbone of the business profession.
Much work still needs to be done at the executive levels in adopting and then maintaining a rigorous code of ethics in their respective companies and industries. Leadership is critical here, and there is little chance of regaining the trust of the public without the broadly positive examples that only leaders can provide.
Additionally, students of business should be exposed to ethics in a far more intensive way. These are our future business leaders, and the global, ultra-competitive, cutthroat arena they will enter will be fraught with ethical challenges. They should be made to understand that a profession with little appetite for policing itself will bring about the ubiquitous and ruthless regulation from the outside, the cumulative results of which will resemble death by a thousand cuts.
We have lots of challenges ahead of us as a nation. Political, economic, and cultural issues abound, many with implications that could alter our society in ways that we can’t yet foresee or even understand. But our free-enterprise model has done so much for so many, and has so much potential yet unrealized, that its healthy continuance should be central. We should relentlessly seek to improve upon it, but never apologize for it. As far from perfect as it is, it’s still the best economic system in the world. And it’s up to us to make it better.
That’s the reason I advocate for business ethics.
One of the great things about the world opening up and becoming more transparent (social media, etc) is that it’s harder for people and businesses to hide their true colors. Being ethically sound makes life so much easier, though it’s still hard for the public to see what’s going on deep inside of a business. As you said, proper education should really help in the long run.
Agreed, Mickey. Education is critical. And not only for the sake of business ethics.
I agree with Mickey. I was thinking just the other day after seeing a Facebook rant about a business (they tagged the business) that not having good business ethics can absolutely destroy a business based on social media alone. In less than a minute we can let our entire friend list know if we’ve loved a service or hated it. Thankfully the rant I mentioned ended well. The business apologized and made good on the situation.
All’s well that ends well, right Mandie? Tamper with the power of social media at one’s peril!
After just reading several articles on scandalized politiicians and their comebacks, it is quite refreshing to read a blog on ethics and how important ethical standards are in business today. I think the majority of people want to do the right thing for their customers, business and family and that is not lauded enough in the general media. The more said and emphasized, the better people we will become. Thanks for the great post and reminder of the importance of doing the right thing and helping the next generation of leaders understand that concept as well.
Thanks for the nice recap, Natalie. You were spot on.
Gerald, so true. It made me think that who we are in business, is just a reflection of what our personal ethics are. Can’t have one set a rules for your family and another for your business/leadership. Get the heart right and we can effectively lead. Thanks for the reminder!
Well said, Becky. Thanks.
Ethics is concerned with “doing the right thing” in terms of morals, fairness, respect, caring, sharing, no false promises, no lying, cheating, stealing, or unreasonable demands on employees and others, etc. In addition, business ethics calls for corporate social responsibility (CSR) and addressing social problems such as poverty, crime, environmental protection, equal rights, public health and improving education. We need a practical approach rather than a philosophical one (as discussed later), with “leadership by example.”
Business decisions often concern complicated situations which are neither totally ethical nor totally unethical. Therefore, it is often difficult to “do the right thing,” contrary to what many case studies will have you believe!
For instance, in a proposed sale, is it the seller’s duty to disclose all material facts regarding the product/service in question or is it the buyer’s responsibility to find out the pros and cons of what he or she is getting into? Should the seller answer each question exactly as it was asked, and ignore some pertinent information? Or should he or she merely address the spirit of the question? Is the buyer responsible for conducting due diligence, including checking out the pros and cons of buying products/services offered by the competition? In the light of real world constraints, is it really feasible to draw upon the teachings of Socrates, Aristotle, Plato and other philosophers before making a decision in every single situation?
Ethics training can raise ethical IQs and monitor behavior, but it is difficult to alter the basic nature of individuals such as Bernie Madoff, Conrad Black and Vincent Lacroix. Ethics is conscience-based, knowledge-based and attitude-based, and not suited to some individuals, who, by their very nature, have consistently demonstrated selfishness and greed.
Maxwell Pinto, Business Consultant and Author.
Thanks for your astute comments, Dr. Pinto!
I wholeheartedly agree that leadership by example is the key to an organization’s view of itself as either ethical or otherwise. And whether that view becomes an integral part of the firm’s culture by its everyday actions is also a function of leadership.
I also agree that business ethics can be complex, but any relationship of any sort involving humans can always be complex. Medical ethics are not without emerging and growing complexity. Legal, religious, and journalistic professions are rife with ethical challenges and complexities. Even golf ethics can have its own complex nuances, as we’ve seen this weekend.
Bernie Madoff knew he wasn’t doing the right thing. And now he dines on prison food. It need be no more complicated than that.
Thanks again for taking the time to join the discussion.
It’s nice to see you mention that the businesses you speak to do seem to be ethical. It just seems that more and more ethics seem to be lacking, especially in our government. It is up to our current business leaders to show future generations how to behave because as other commenters have pointed out if your ethics are bad your business will suffer bc people turn to social media to complain. So hopefully the future will bring more stand up leaders then leaders who say one thing and do another.
Yes, Courtney, more leaders need to emerge, and I hope the business profession is a leader in that emergence.
Gerald, thank you for such a great reminder. I tried everyday to operate my business based on ethical business principles. Doing the right thing isn’t always easy or inexpensive, but I know it will cause us to be successful in the long run.
Here’s a great resource from my native South Africa: http://www.unashamedlyethical.com/.
and yes, this is still the best place in the world to run a business!
Thanks for the link, Carel. I enjoyed the interesting reading.
bullshit
Coco, thank you for taking the time to offer such an insightful
comment.