Ethical Principles in the Workplace
In Frank Capra's classic movie "It's a Wonderful Life," the greedy, unscrupulous banker makes a fortune taking advantage of struggling borrowers while the kind, ethical banker struggles to make ends meet. This dynamic expresses the widely held belief that success in business usually comes at the expense of ethical principles. However, most small businesses are built on trust and decency between entrepreneurs and their customers, employees and suppliers. Despite the stereotypes, acting ethically can actually be quite good for business.
Treating Employees Ethically
Ethical treatment of employees covers everything from paying them fairly to providing work conditions that do not harm them physically or mentally. Although large retailers such as McDonald's and Walmart have reputations for earning exorbitant profits but failing to pay employees a decent wage, the typical small business owner will be rewarded for treating employees fairly by earning their loyalty and their hard work. Inhumane work conditions are not only unethical but also bad for business, creating a company culture of distrust and potentially leading to expensive lawsuits.
Ethical Employee Behavior
Employees also have a responsibility to act ethically in the workplace. Trust between an employer and his employees depends on the willingness of employees to do work that is commensurate with their level of pay. They should also continue doing high-quality work, even when they are not being closely watched. Ethical employee behavior also involves refraining from stealing, either by pocketing money or products, or by claiming to work hours when they were actually doing nothing.
Treating Customers Ethically
A business has a responsibility to treat its customers ethically. This involves financial honesty, such as giving customers correct change, and graciously refunding their money if they are dissatisfied. It also involves providing products or services that are worth their price. The relationship between a business and its customers is also based on an unstated covenant that the business will do everything possible to avoid unnecessarily putting its customers at risk or danger, such as an automobile manufacturer that must make sure the brake systems in its cars work effectively.
Treating Suppliers Ethically
A business should also treat its suppliers ethically. This involves honoring the terms of business arrangements, such as paying for goods on time. A business owner should also be honest with his suppliers about shipments received, only making claims about missing items if these items are indeed missing. Ethical relationships with suppliers also involve rewarding suppliers for great service with ongoing loyalty, rather than switching suppliers on the basis of price alone.
Devra Gartenstein is an omnivore who has published several vegan cookbooks. She has owned and run small food businesses for 30 years.