Description
Research from the University of Notre Dame finds that ethical business operations are highly important to success, while unethical behavior can negatively impact a business’s prospects.
- Unethical behavior has consequences for future business.
- Ethical behavior includes honesty, fairness, integrity and understanding.
- There are several ways to encourage an ethical workplace culture, including establishing a company-wide code of ethics.
What is ethical behavior?
A person who demonstrates ethical behavior has evidence of a strong moral code and a consistent set of values. Ethics can be rooted in belief or the pursuit of making the world better. Those who exemplify ethical behavior do the right thing regardless of whether they get credit for it. This sort of behavior is not limited to the workplace; it can be present in every facet of life.
In a business setting, ethical behavior applies to any employee, team lead or supervisor. They should display behavior that is honest and fair in their relationships with coworkers and their clients. Displaying good ethical behavior has an effect on company morale and client relations. It’s easier for a business to retain employees when they work for a company that they believe in. Employees want to work for companies that treat everyone and their clients fairly and have good and ethical business practices.
A high ethical standard extends to customers as well. A reputation for positive ethical behavior entices more potential clients, customers and partners to work with you. It also build customer loyalty over time, creating a loyal customer base that is likely to refer your business to others.
Key takeaway: Ethical behavior means your team operates according to fair and transparent standards, not just complying with legal rules or regulatory requirements but going above and beyond to ensure decisions are applied through an ethical lens.
Why is ethical behavior important?
To understand why ethical behavior is important, it might be helpful to know how unethical behavior affects a company. Think about a business that hires only family, or one that gives inappropriate incentives, for example. While these actions might not be illegal, they can definitely have negative effects on the morale and success of a company.
On the flip side, a leader who personifies ethical behavior will be fair in all situations. In turn, employees will trust that their leadership team is working toward the greater good of the entire company. By being ethical, leaders can foster an environment that rewards and encourages good attitudes.
The best way to instill a culture of ethics among employees is to lead by example and maintain a clear zero-tolerance policy on specific unethical behaviors, such as lying, cheating, stealing, or fraud.
What is a code of ethics?
In the workplace, there might be a standard for ethics set throughout the company. Many organizations create a code of ethics, which might include generic guidelines for ethical behavior about doing the right thing or remaining fair. It could also mention specific protocol within the business. For example, a code of ethics at a doctor’s office might include putting the patient first and remaining understanding in tough situations. At a college, a code of ethics could include being honest and unbiased when grading and being a catalyst for diverse perspectives in the classroom.
Instructions
Find an example of a company that either demonstrates high levels of ethical behavior OR low levels of ethical behavior/unethical behaviors. In your initial discussion response respond to the following:
- What is the name of the company and what products or services does the company provide?
- Ethical behavior includes honesty, integrity, fairness and a variety of other positive traits. Those who have others’ interests in mind when they make decisions are displaying ethical behavior. What are some examples of ethical or unethical behaviors your selected company demonstrates? Please make sure this response is in your own words and cite your resources.
- How have the ethical or unethical behaviors impacted organizational stakeholders: employees, customers, the community, investors, stockholders, etc.?
Please answer the questions above in complete sentences, put the information in your own words, and cite your supporting resources.
- Post a substantive response to all parts of the initial discussion prompt.
- Post at least one substantive response to a classmate’s response by clicking the “Reply” button.
