5 Tips to Develop Successful Business Ethics

Illumeo Customer Success's Profile

Ethics play a vital role in today's business as it can impact the brand image, public perception, and even productivity of employees. Companies that maintain ethical business cultures are more financially successful and have a highly motivated and productive workforce. Employees are motivated to practice honesty and integrity while they speak or act. Such ethical companies retain a number of employees for the long-term, reducing turnover and training costs.

Customers and investors of ethical companies are happy and confident in knowing they are dealing with an honest company. Companies that practice ethical practices decrease their risk of getting into legal troubles and fines. Time saved in defending the company against lawsuits could be better spent on making better business decisions.

Lead Ethics by Example

To ensure that the top management lead by example is the most recognizable way a company can demonstrate its commitment to creating an ethical business culture. Employees look up to the behavior of top management as an example and follow them. Ethical behavior, honesty, respect, and morale of the top management send a positive message to employees for the type of behavior that is acceptable in the workplace. Senior leaders should always be heedful of the fact that actions speak louder than words, and that they are being watched for what they practice and preach.

Set Ethical Policies & Enforce Them

Policies are the set of rules set by a company which need to be followed for good working standards. A corporate ethics policy provides employees and customers with solid guidelines about the accepted and unaccepted practices in the work environment. It is important to be very clear about what employees are required to do, where is freedom allowed in decision making and which ethical issues are intolerable. It is good to have a clearly written ethics policy accessible to all the employees of a company. Holding employees accountable should prevent the protraction of any unpleasant behaviors and nip them before they get out of control.

Formal Ethics Training

A formal ethics training programs reinforce the standards of conduct of an organization and send a clear message about the types of behavior that are acceptable and unacceptable by the company. It also demonstrates to employees the importance of business ethics and that ethics is a fundamental part of all operations and decision making. Seminars, workshops, and other ethical training programs can help employees develop skills to address and resolve possible ethical issues at the workplace.

Create A Positive Work Environment

It's a psychologically proven fact that our physical environment links directly to our mental wellbeing and productivity. The simplest things can foster a positive work environment and leave employees feeling like valued members of the organization. It is the responsibility of an employer to ensure that all the right resources are available to employees in order to fulfill their job responsibilities. Also, the organization should respect the rights and dignity of all its employees.

Reward & Recognition

It is important for employers to be transparent while outlining how performance, pay and promotion decisions are made. All employees should have well defined and clear criteria for achieving reward and recognition. Ethical businesses clearly outline the ethical and unethical conduct to all the managers and their subordinates and avoid acknowledging those who violate the company's values.

Businesses have more and more of an incentive to be ethical as the area of socially responsible and ethical investing keeps growing. Companies are taking this issue more seriously as the investors are seeking out ethically operating companies to invest in.