Ethics: What is ethics and how to definition of this?
What is ethics?
Derived from the Greek word “ethos”, which means “way of living”, ethics is a branch of philosophy that is concerned with human conduct, more specifically the behavior of individuals in society. Ethics examines the rational justification for our moral judgments; it studies what is morally right or wrong, just or unjust.
We are all encouraged to make ethical choices and apply ethics in all areas of our lives. But what does ethics mean, and why do ethics matter for business?
We can think of ethics as the principles that guide our behavior toward making the best choices that contribute to the common good of all. Ethics is what guides us to tell the truth, keep our promises, or help someone in need. There is a framework of ethics underlying our lives on a daily basis, helping us make decisions that create positive impacts and steering us away from unjust outcomes. Ethics guides us to make the world a better place through te choices we make.
Ethics in business is just as important as ethics in personal life. Business leaders have a unique role and a great responsibility in shaping the ethical culture of their businesses, and thereby influence their broader communities as well.
Ethics and Social Responsibility
Social responsibility is the idea that an individual (or organization) has an obligation to act for the benefit of society at large. Today, social responsibility has become an important part of culture at businesses of all sizes. TOMS Shoes is an excellent example of a business that prioritizes social responsibility. TOMS was founded with the commitment to provide a new pair of shoes for a child in need for every pair of shoes purchased. The company has now expanded to support other causes such as safe water, mental health, and equality. TOMS Shoes’ inspirational tagline “Stand for Tomorrow” communicates its dedication to social responsibility in just three words.
Social responsibility can be practiced in big or small ways every day. Businesses can volunteer with local organizations, donate funds to a chosen cause, sponsor a neighborhood group or sports team, and much more. Even planting flowers, applying a fresh coat of paint, or picking up trash in front of your store has a positive impact on the community surrounding your business. When businesses give back, they not only contribute to the common good, they engage with their communities in meaningful ways, build morale among employees, and create positive regard for the business.
Ethics When Things Go Wrong
It is not easy to handle a business crisis, but avoiding it or postponing a response could make it worse. Businesses should think ethically when coming up with a plan to handle an ethical crisis. In other words, act in a way that promotes the greatest common good and encourages trust rather than diminishing it.
Some situations may warrant the advice of a lawyer and a crisis expert. Here are some general practices that could be followed:
- Be open and transparent
- Prioritize those impacted by the situation
- Apologize
- Fix the problem
Ethics is a Lifestyle
Ethics has influence over the decisions we make and the actions we take, from our personal lives to our professional careers, and beyond. We are all part of an interconnected global community. Our contributions to the common good, no matter how big or how small, can have a lasting impact. Choosing an ethical lifestyle will ensure our impact is positive. Business leaders have a unique opportunity to create and influence the ethical culture of their businesses and among their stakeholders. Even bringing ethics into your business mindset will help you approach situations in a more ethical way. And if you are unsure how to create an ethical culture in your business, leading by example is a great way to start. It’s a simple as be good, do good.
1. Integrity
One of the most important workplace ethics is integrity. By definition, integrity is the “quality of being honest and having strong moral principles, a personal code of conduct that goes above the level of good conduct and encompasses the spirit of good conduct.” Employees with integrity are usually the ones you can count on, the ones with the highest moral values and the ones who are bent on doing the right thing at all times.
2. Honesty
Being an honest individual means you do not deceive others by giving out misleading information. This includes the truthful way of conduct that is usually without the intention of lying, cheating or any form of falsification. Customers typically only deal with a business or a service provider whom they trust. In a workplace, an honest employee is the one you can rely on to continue doing their best in their jobs for the company’s benefits.
3. Discipline
At times, an employee may be talented in his line of work but lacks the commitment and dedication to complete the tasks given. It requires a certain level of discipline to not only complete the tasks within a certain time frame but to also execute them well, instead of doing just the bare minimum at the very last minute. Disciplined employees are extremely important as they ensure that all assignments and projects are delivered and executed in a timely manner.
4. Fair and respect
Achieving an ethically strong workplace involves the cooperation of every employee, from top decision-makers/leaders to entry-level employees. No matter which level you are at, you need to ensure that all your actions are fair and just, particularly if you are entrusted with a position to lead. This will ensure a positive work culture in your organization. Always remember that every one of your staff deserves to be treated with respect and dignity, regardless of who they are, or which position they are at.
5. Responsible and accountable
If an employee has a strong sense of responsibility, he or she would undoubtedly turn up for work on time and complete the tasks given with the best effort that he or she can offer. Nevertheless, there will be a time when an employee may make a mistake, hence it is important to also be able to acknowledge these mistakes, be accountable for it and accept any consequences. In certain scenarios, an ethical manager will take accountability for their staff or colleagues for reasons that are not for self-interest but for the well-being of all parties involved.
6. Be an ethical leader
This means having the courage to challenge others when necessary.
7. Use moral courage
As business professionals we can be under great pressure to meet deadlines, garner good financial results or keep lucrative clients. People that do something wrong are not always inherently bad people – everyone is capable of acting differently when under pressure.
Making a stand against unethical behavior can be even more difficult when others acquiesce to inappropriate conduct. The harsh reality is that if we suspect impropriety and do nothing, we can be found guilty of condoning it, and implicated in a scandal.
8. Set the right tone at the top
Board members, or higher levels of management, are the custodians of an organisation’s future and must establish an appropriate ‘tone at the top’ to ensure sustainability.
We must value colleagues. The adoption, promotion and embedding of a culture of fairness, including respect for values of equality, diversity and inclusion, is an important element of an effective ethical culture within an organisation.
Individuals within organisations must feel empowered and supported to ‘speak up’ so issues can be dealt with at the earliest opportunity before they escalate. Even more important is ensuring that concerns raised are properly listened to and appropriately investigated.
9. Maintain an inquiring mindset
It is the inquiring mindset which allows you to question whether something seems reasonable. Have the correct assumptions been used? Is the information complete? Does this align with my expectations?
Ethical dilemmas may start off as innocuous and immaterial, but snowball into an issue. Problems need to be nipped in the bud to avoid escalation beyond our control.
10. Consider the public interest
The ‘reasonable and informed third party test’ in the ICAS Code of Ethics is a helpful benchmark. Ultimately, it is about how our actions could be viewed by others and giving consideration as to whether we ‘should’ do something, as opposed to whether we ‘could’ do something.
What would an objective, reasonable and informed third party conclude? If they would conclude that a course of action is inappropriate, don’t do it, don’t condone it, and have the moral courage to do something about it.
7. Consider ‘the right, the good and the virtuous’ actions
With their unique vantage point across business operations, CAs are well placed to identify and challenge unethical decisions and behaviors.
Reference: scu.edu