Business Ethics

One of the best ways to increase the production of your business is to use systems.  A system is desirable because it does not require you to take every single step in the process into consideration.  Instead, you know how to react exactly to each situation, because you have systematized the whole process.  Also, systems can be tweaked to become even more efficient over time.  A business code of ethics is like a well-run system.

Every business should be governed by a business code of ethics, if they want to make sure they create an ethical culture in their business.  Otherwise, they will have to judge each situation on a case-by-case basis.  This is not good -- this will allow emotions, temperament, and a variety of other things to cloud judgment.

A solid business code of ethics needs to be created to help you come to the correct decision, no matter what should occur.  If you have an overall philosophy on your business ethics and social responsibility, then it will be much easier to make the right decision when ethical dilemmas arise.

When coming up with a good solid business code of ethics, you have to take practical and theoretical issues into account.  On the practical side, you have to have certain ethical boundaries defined, as they relate to your accounting, sales and marketing, production and human resource management.

What is your personal philosophy on how you treat your employees, and how your employees treat you?  If you don't have a sense of this type of relationship, you will treat your employees inconsistently, or be treated inconsistently by your employer.  This is not a good way to create strong relationships.

You also have to ponder certain theoretical issues, as they relate to your business code of ethics.  For example, consider this -- a corporation has an obligation to its shareholders to give them the maximum amount of return on their investment.  However, a corporation also has an obligation to treat its employees fairly.  Does this mean they should abuse their employees because there first concern lies within their shareholders?  Or should it mean that they should sacrifice a portion of their profits to make sure their employees are treated fairly?

You have to come up with a sound answer to questions like these.  Otherwise your actions will be inconsistent, and not likely to be the best choices.

In conclusion, I have given you some basic information about business code of ethics.

Business Ethics |