Ethical business что это
business ethics
Смотреть что такое «business ethics» в других словарях:
business ethics — ➔ ethics * * * business ethics UK US noun SOCIAL RESPONSIBILITY ► [plural] rules, principles, and standards for deciding what is morally right or wrong when doing business: »The article explores the business ethics of subprime lending. »The… … Financial and business terms
Business ethics — For the episode from the American television series The Office, see Business Ethics (The Office). Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical… … Wikipedia
Business ethics — Das sich in den USA seit den 1970er Jahren stark ausbreitende Feld der Business ethics umfasst den gesamten Bereich der Wirtschaftsethik, wird aber im Vergleich zum deutschsprachigen Raum stärker aus der Perspektive des Einzelunternehmens… … Deutsch Wikipedia
BUSINESS ETHICS — The Role of Wealth Any discussion of business ethics, within any cultural or religious framework, requires at the very outset a definition of the role of material wealth, financial assets, and other forms of economic possessions. Furthermore,… … Encyclopedia of Judaism
Business Ethics — The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business… … Investment dictionary
business ethics — noun The branch of ethics that examines questions of moral right and wrong arising in the context of business practice or theory … Wiktionary
business ethics — The branch of ethics that analyses problems and dilemmas created by business practices: for example, the social responsibilities of the firm, the proper limits of acceptable competition, the weighing of conflicting obligations to stockholders and … Philosophy dictionary
Business Ethics — ⇡ Unternehmensethik … Lexikon der Economics
business ethics — standards governing commercial relationships … English contemporary dictionary
Business Ethics (The Office) — Infobox Television episode Title =Business Ethics Series =The Office Caption = Season =5 Episode =2 Airdate =October 9, 2008 Production = Writer =Ryan Koh Director =Jeffrey Blitz Guests = Episode list =List of The Office (U.S. TV series) episodes … Wikipedia
Religious views on business ethics — Many faiths have extensive literature and legal code on the accumulation and use of wealth; and many businesses rely on these ethical guidelines, both as a result of the religious beliefs of owners and managers, and as a way of ensuring that… … Wikipedia
What is an ethical business?
Our experts
The need for sustainable and ethical business practices seems more prevalent than ever. World leaders, celebrities and other influential personalities are beginning to vocalise their support for ethical trading and an increasing number of huge corporations have come under fire over their ill-treatment of workers, animals or the environment.
And being a ‘good business’ is becoming more popular and profitable as the market and entrepreneurs start to react to this gathering movement. For instance, the UK’s renewable energy market has exploded with both commercial and government support – PWC’s market review found that £29.8bn of investment was pumped into the industry in 2010-2013 and this is expected to rise to over £40bn by 2020.
Moreover, it’s not just investors and business support networks that are backing ethical traders, consumers are also becoming more conscious. Mintel’s 2015 UK consumer report found that 76% of UK adults say that the ethical and sustainable credentials of their products and the reputation of companies or brands are important when making a buying decision.
Here, we take a look at what it means to be an ethical trader, the advantages and disadvantages, and why launching a business which limits its negative impact could be the right option for you…
What does it take to be an ethical business?
An ethical business is one that considers the impact its actions, products and services have on the environment, people and animals. This includes the end product or service, its origins, and how it’s manufactured and distributed.
This may sound like a basic choice every business should make but it’s not that simple. For instance, if you choose to outsource your production in a factory overseas, for example China or Bangladesh (both cheaper manufacturing countries), where employment and environmental regulations are less comprehensive, there are requirements to follow. You must ensure to outsource in a way that empowers, rather than exploits workers, and guarantees that employees or contractors are given rights in line with international labour standards.
Also, if you want to stay sustainable, you have to be careful about how your products are created, what they are produced using, their distribution and their manufacturing processes. For instance plastic, and plastic-derived materials like polystyrene, is one of the cheapest and convenient materials yet it’s also extremely toxic to our planet.
Basically, in order to deem yourself a completely socially responsible and people-friendly business you must keep to a rigorous set of criteria. You’ll need to ensure that your products are made in safe, healthy environments where workers are treated and compensated fairly, and that your firm’s implementing a variety of eco-friendly measures to minimise its environmental footprint.
The downside of running an ethical business
Running an ethical business is no easy game. Unless you launch a charity or a social enterprise, which are both primarily focused on social goals, then your business will not receive any special funding. And as you may have already gathered, it’s also an industry where it’s not easy to scale fast and where you might have to sacrifice profits in order to remain ‘ethical’. Ensuring that your business is produced by workers who are paid fairly, and who work in a liveable environment will mean your business pays more – there’s a reason industry leaders like Apple and Primark use overseas manufacturers.
James Boon, founder of ethical product business Elephant Branded, admits his firm had to turn down investment and revenue to stay ethical:
“There are challenges, for instance, we find sometimes we simply cannot meet the margins required from distributors and some large retailers. Our margins are too tight and we sometime miss out on opportunities as we are simply not prepared to devalue the ladies we work with, or cut back on the school kits we deliver to the children around the world for every EB bag sold.
“I once had an investor tell me, why don’t you just make your products in China? You could get a much bigger scale and it would be a lot cheaper […] Well I can safely say we declined and stuck to our core values!”
More people are waking up to the need for sustainability however and big companies are starting to follow a sustainable route with many leading fashion companies like H&M launching eco-friendly initiatives. There are also plenty of successful businesses who are also deemed ethical, like construction giant AECOM and phone company HTC.
And although this might all seem unrealistic to a young business or aspiring entrepreneur who’s also trying to keep up with red tape, funding, talent and cashflow issues, don’t underestimate your ability to make a big difference with a little change.
Where the ethical business opportunities lie
No matter what type of business you run, there’s an opportunity to be sustainable and ethical in at least one way – be it eco-friendly, animal friendly or people-friendly. For instance you could keep your manufacturing purely in Britain – and gain the valuable ‘Made in Britain’ trademark – or you could use exclusively reclaimed, vintage, and upcycled materials which would also help keep costs down.
Many businesses choose to partner with a co-op or communities in developing countries which aim to create sustainable and fair employment opportunities that provide important revenue streams and are trying to lift people out of poverty. Startups 100 member Pact Coffee, which deliveries fresh coffee and was set up with the mission to make coffee a force for good, is one such example.
The start-up has a policy of ‘Direct Trade’ and makes sure all the growers it works with are being paid fairly – at least 25% more than the Fairtrade price – and it works together with farmers to help increase the quality of their crop.
Head of Coffee at Pact, Will Corby, said: “There is the potential to really improve coffee farmers’ lives by managing the supply chain better and trading directly with the farmers themselves. It has taken a couple of years for us to get there but we now have direct trade going where we can be sure we get the highest quality coffee and pay the growers really well for it.”
Another route aspiring ethical entrepreneurs could take is to launch a business that sources local or sustainable producers. The organic and traceable food movement has been gathering traction for years with many consumers demanding to know the origin of their food and firms like Green & Black’s providing a shining example of how to get this right. Young Gun company Friska, which runs a healthy and ethically sourced fast food restaurant, say that having a positive impact has also helped them stand out in a competitive market place with co-founder Griff Holland adding, “Customers care about where they spend their money. They expect businesses to be responsible and ethical, but we don’t just do it for those reasons, we genuinely believe it’s important to give something back when you can.”
Business support and why you should consider going ethical
And although there may not be funding agents specifically for ethical traders, there’s a big community of supporters. Group’s like The Ethical Company Organisation, which gives companies an Ethical Accreditation and runs the Good Shopping Guide, acts as the bench mark for sustainability in business, and the Fairtrade Foundation works with and promotes firms with ethical practices – also offering a seal of approval. Eco-Age, which is run by Livia Firth, wife of Colin Firth, works with businesses to help them improve their sustainability – with Firth utilising her celebrity status to promote the ethical fashion movement.
Furthermore the B-Corp, an American born initiative, has just launched in Britain. Firms must fall within the groups criteria but once a member, you become part of its network of 1,400 companies that span 41 countries – which according to UK branch director James Perry – opens up doors to new partnerships and trading possibilities with both UK-based and overseas members that include Ben & Jerry’s and Etsy.
Finally, being an ethical business can be hugely beneficial to your business’ culture, and core values are one of the main reasons businesses launch with an ethical focus. According to Boon this is what drives the business forward:
“Pry is my business partner in Cambodia, he is the genius behind the up-cycled bags. He grew up in a poor family who had just come out of the Killing Fields of the Khmer Rouge. With no money in his pocket he learnt to fix motorbikes and got enough money together to become a tuk tuk driver. One night after dropping some tourists off at a hotel he met and fell in love with his wife Mey who was making silk bags at the time. He liked the bags and after a few experiments with different materials he eventually hit on the idea of making bags from recycled cement bags and shorty after we met. That was really how Elephant Branded was born and we have slowly grown from there.”
“For myself, it is that real life element that makes it all worthwhile. In my mind, this is the value of business, it is about family, trust and loyalty. One of the few things in life which bridges race, religion and culture to allow people all over the world to work together and enhance their own lives.”
“While this may only be a small change, and Elephant Branded is certainly not going to change the world, my hope is that we can show that you can turn a profit and do some good in the world. My dream is to see others taking up to gauntlet and really change the world for the better through business.”
12 Examples of Business Ethics and Why They’re Important
Businesses have an obligation to conduct themselves professionally to best serve their customers and employees. Operating by a list of ethical standards helps businesses navigate challenges, provide exceptional service and retain quality employees. In this article, we explain what business ethics are with examples of common professional codes of conduct.
What are ethics?
Ethics is having a sense of what’s right and wrong, evaluating situations and making smart decisions based upon your personal and/or professional values. The same set of ethics can be applied to both personal and professional situations and environments, but do not need to be. You can, for example, have a different set of beliefs for your personal life than you do as an employee, manager or owner.
Personal ethics
Personal ethics are often a set of beliefs specific to an individual and based upon experience, family and community. For example, you may hold strong beliefs about honesty, integrity and responsibility.
Business or professional ethics
Business ethics are a set of moral guidelines that influence how a company serves its customers and treats its employees and is often based upon the personal ethics of the company’s owner or manager. Every industry and individual business has its own ethical conduct that affects its organizational procedures and systems.
12 examples of ethics for the workplace
Here are examples of the most common personal ethics for professionals:
1. Transparency
Transparency involves accurately representing facts, telling a truth in its entirety and communicating clearly and openly about everything a company does and says. It is the foundation of a strong relationship with customers, which directly impacts the success and stability of a company.
The more candidness a company shows, the more the public is likely to trust in its service, product or mission. This is especially true during public relations crises when full disclosure is imperative to overcoming business issues.
2. Integrity
Sticking with a decision, especially when pressured to do otherwise, shows honor and courage. Companies that do what they believe is morally right based on equality and fairness can demonstrate strength and commendable character.
3. Trustworthiness
Companies that keep promises and fulfill commitments to their employees, business partners and customers display their commitment to business ethics. Trustworthiness is a monumental component to success in business because people typically like to work with and buy from those they believe are dependable and principled.
4. Loyalty
Loyalty encompasses all relationships a business has including those with staff, partners, investors and consumers. Loyalty allows a business to make decisions benefiting these relationships and overcome influences from outside conflicting interests. This shows the business values the advancement of the company and employees over an owner’s personal gain.
5. Fairness
Companies should strive to act fairly and commit to exercising their power justly. Leaders should only use honorable methods to gain an advantage over the competition. Also, fairness relates to equality, which means having an open mind and treating everyone fairly. Fairness and equality can be involved in hiring practices, marketing initiatives, business partnerships and competing within the market for new consumers or clients.
6. Compassion
Ethical companies demonstrate genuine kindness, understanding and care for the livelihood of others. In business, this means accomplishing business goals to produce the most good while causing the least amount of damage. When a business decision needs to be made, careful consideration of the options and how each one may affect a person or community helps reduce the potential negative impacts, depending on the industry.
7. Respect
Respect also relates to client or customer privacy since companies are held to the ethical standard of keeping information such as bank account details, health background or social security numbers private. Maintaining this level of privacy shows respect and ensures the company operates within a variety of industry-specific laws, such as the Health Insurance Portability and Accountability Act (HIPAA).
8. Lawfulness
Business ethics also include abiding by legal regulations and obligations regarding their business activities like taxes, worker safety and employment and labor laws. Companies that work within the boundaries of the legal system are more credible and honorable, which can establish a strong positive reputation as an employer that encourages high-quality candidates to apply for roles.
9. Providing excellence
Ethical organizations strive to provide excellence by always working to deliver the greatest quality of service or products to their clients and customers. They pursue creativity and innovation, looking for the best ways to deliver their goods and seek to constantly improve their performance, customer satisfaction and employee morale.
10. Responsibility
Companies with high ethical standards recognize their responsibilities to their employees and customers and understand how the conduct of their leadership affects the business. Companies have a responsibility to lead with the values and mission of the organization to make logical decisions that benefit everyone. Company leaders should implement ethical standards and model them to others by displaying the standards themselves.
11. Reputation upholding
An ethical company seeks to maintain and protect a positive reputation to build a motivating work culture, keep investors engaged and provide exceptional service to customers. Upholding a good reputation means engaging in conduct that uplifts the company. If any action is taken to undermine a company’s reputation, leaders need to handle the situation appropriately utilizing other ethical standards such as transparency, accountability and responsibility.
12. Accountability
Ethical businesses accept responsibility for all decisions made as a company and admit their mistakes to all of those who may be affected by a misstep including shareholders, employees and the public. In addition to taking accountability, they also accept any consequences that result and do so transparently.
Why is ethics in business important?
Ethical conduct in business provides benefits for both business owners and consumers, including:
Ensuring legal operations
A code of ethics enforces a set of regulations and rules with the intent to keep the company operating within the parameters of the law, which protects company leaders, employees and customers. Some legal areas include environmental regulations, financial regulations and employment equity.
Building trust between companies and consumers
Ethics in business help build positive and trusting relationships between companies and consumers. When companies demonstrate ethical behavior consistently, consumers feel more comfortable choosing that company over others.
Appealing to shareholders
Ethical businesses may also receive more financial support from shareholders because investors likely want to work with morally sound and legally abiding companies.
Attracting high-performing talent
Businesses that show compassion can attract more top talent because candidates look for companies they feel will appreciate and value their contributions to the company and act in their employees’ best interest. This can improve the work produced by bringing in more committed candidates and reducing employee turnaround.
Business Ethics: Types and Examples
Every company has a code of conduct that applies both to the business and to its employees. Business ethics is what drives that code of conduct. Companies often voluntarily adopt principles of corporate ethics, but sometimes those principles are imposed by legislation. A company’s business ethics can shape the way it is seen by the world, its business partners and its customers, so it can be key to its success. This article examines business ethics, what it is, why it is important, and its various types.
What is Business Ethics?
Business ethics refers to the set of moral principles that guides a company’s conduct. These principles govern every aspect of the company’s life, including its interaction with government and other businesses, its treatment of its employees, and its relationship with its customers. Whenever any ethical dilemmas or controversies arise, a business will look to these foundational principles to help resolve those situations.
Why Is Business Ethics Important?
First, it makes sure the company operates according to all applicable laws. Operating lawfully, whether on a local or national level, maintains the company’s respect among its peers and potential clients or customers, and enables it to continue running.
A company’s business ethics also help it attract quality employees. Businesses that care for their employees at every level and treat them according to the highest ethical standards are attractive to job seekers. Also, if you work for a company that respects its employees, you are more likely to perform well and stay with the business for a long time.
Finally, a business that treats its customers or clients ethically builds trust with them, as well as an ongoing relationship. These customers will be return customers, and they will likely recommend that business to people within their sphere of influence. Also, a business known for its high ethical principles can gain respect and elevate the quality of its brand.
Types of Business Ethics
There are various types of business ethics. Both the nature of the company’s business and where the company is located can affect which ethics it emphasizes. The following are some of the more common business ethics.
1. Personal responsibility
Each person who works for a business, whether on the executive level or the entry-level, will be expected to show personal responsibility. This could mean completing tasks your manager has assigned to you, or simply fulfilling the duties of your job description. If you make a mistake, you acknowledge your fault and do whatever you need to do to fix it.
2. Corporate responsibility
Businesses have responsibilities to their employees, their clients or customers, and, in some cases, to their board of directors. Some of these may be contractual or legal obligations, others may be promises, for example, to conduct business fairly and to treat people with dignity and respect. Whatever those obligations are, the business has a responsibility to keep them.
3. Loyalty
Both businesses and their employees are expected to show loyalty. Employees should be loyal to their co-workers, managers, and the company. This might involve speaking positively about the business in public and only addressing personnel or corporate issues in private. Customer or client loyalty is important to a company not only to maintain good business relations but also to attract business through a good reputation.
4. Respect
Respect is an important business ethic, both in the way the business treats its clients, customers and employees, and also in the way its employees treat one another. When you show respect to someone, that person feels like a valued member of the team or an important customer. You care about their opinions, you keep your promises to them, and you work quickly to resolve any issues they may have.
5. Trustworthiness
A business cultivates trustworthiness with its clients, customers and employees through honesty, transparency and reliability. Employees should feel they can trust the business to keep to the terms of their employment. Clients and customers should be able to trust the business with their money, data, contractual obligations and confidential information. Being trustworthy encourages people to do business with you and helps you maintain a positive reputation.
6. Fairness
When a business exercises fairness, it applies the same standards for all employees regardless of rank. The same expectations with regard to honesty, integrity and responsibility placed upon the entry-level employee also apply to the CEO. The business will treat its customers with equal respect, offering the same goods and services to all based on the same terms.
7. Community and Environmental Responsibility
Not only will businesses act ethically toward their clients, customers and employees, but also with regard to the community and the environment. Many companies look for ways to give back to their communities through volunteer work or financial investments. They will also adopt measures to reduce waste and promote a safe and healthy environment.
Examples of Business Ethics
There are many ways businesses express their ethics. Commonly, a business will have a code of conduct document that informs employees of their ethical responsibilities. Businesses may also publish a values statement that advertises the ethical standards to which they hold themselves. These are some examples of ways a business might practice its ethics.
1. Data Protection
Businesses often collect information about their customers. This may only be an email address, but it could also be their physical address, or health or financial information, depending on the nature of the business. Companies that collect customer data normally promise to secure that information and not share it without the customer’s permission. The same applies to employee information. Business ethics usually protect employees’ personnel records and allow access only to those with a valid need to know.
2. Customer Prioritization
One way a business shows respect for its customers is by prioritizing the customer’s needs, even at the expense of the company. For example, if a customer purchases goods or services that turn out to be unsatisfactory, the business will do what it must to recompense the customer. If it is a faulty product, the business will offer a replacement or a refund. If the customer experienced bad service, the company will usually apologize and offer a discount or some other form of compensation.
3. Workplace Diversity
A business might express fairness is by placing a high importance on having a diverse workplace. Achieving a diverse workplace means using recruiting practices that give equal opportunity to people from different ethnic, gender and social groups. This can add time and effort to the hiring process, but it is worthwhile. Employing a diverse range of people gives the business the benefit of different perspectives. It also demonstrates that the company is serious about equality and treating all people with respect.
4. Whistleblower Protection
As a business grows, it becomes harder to verify that employees are keeping to the ethical standards set by the company. Sometimes the business will rely upon a whistleblower to draw attention to unethical practices within the company. To encourage employees to come forward to report unethical practices, businesses will often put in place protections against negative consequences. With these protections, employees don’t need to fear losing their jobs or facing disciplinary action for pointing out unethical behavior.
5. Corporate Transparency
A business that practices transparency will be clear in its communications both with employees and to clients or customers. The language used will be unambiguous so there is no doubt about the policies or priorities that guide business decisions. Transparent corporate communications will also be honest and truthful. Everyone working for or engaging with the company should be able to trust what it says.
6. Community Outreach
Companies often feel an ethical obligation to give back to the communities in which they do business. This can take the form of volunteer programs to which employees are encouraged to donate time, perhaps even at the company’s expense. Such programs might include serving at a soup kitchen, helping with home repairs, cleaning up after a natural disaster, or teaching skills at the local community center. These programs not only help those in need, but also build respect and trust within the community.
7. Environmental Awareness
Many companies take concerns for the environment seriously, whether cutting down on waste or cleaning up the land, water and air. There are various ways businesses act on this such as reducing air travel and using teleconferencing technology as much as possible. Businesses might also promote recycling in their offices by providing receptacles to collect recyclable waste and arranging for them to be emptied regularly.
8. Employee Compensation
Companies adhering to principles of fairness and respect will pay their employees a fair wage for the work they do based on their experience, education and the nature of the work. They will also regularly review employee compensation and adjust it to make sure it continues to be a fair representation of the employee’s position and experience. Businesses will often reward outstanding performance with employee bonuses. These are a good incentive for employees to work hard and remain with the company. They are also a way for the business to express gratitude for the employees’ efforts.