Business Ethics, some say it's an oxymoron, particularly at a time when it seems many corporate giants are stumbling due to financial mismanagement and, in some cases, fraud.
After all, isn't business about making money? Aren't corporations soulless conglomerations of profit centers, revenue generators and cost cutters? Golden Rule? Hah! Whoever has the gold, rules!
Yet, there are many in business, owners, managers and employees, from professionals to unskilled laborers, for whom ethical conduct is the only option. For ethical people, there is little distinction between home and office, family and community and friend and stranger.
All are entitled to respect and honest dealing. For some, morality has a religious basis, but for others who don't believe that a supreme being is watching, perhaps it's a matter of how they see themselves, how they sleep at night.
We build our reputations over time, handshake by handshake, and in a community where we see the same people over and over, bad deeds will not go unnoticed. On the other hand, in large communities where you seldom deal with the same people twice, it's easier to get away with fraud and misrepresentation over a longer period of time.
Lawyers in Los Angeles have a reputation for treating each other with contempt. All agreements have to be confirmed in writing and it's said some attorneys can go for years lying to clients, judges and each other without adverse consequences.
In San Diego, particularly North County, that is not possible. The legal community is small and close-knit; judges talk to each other and those who deceive the courts and each other will not survive long.
Sometimes a business will tolerate bad behavior in order to make money. I've known clients to sign a contract knowing they can't trust the other party. Why? Because the deal is so good, or the money is sorely needed.
Invariably, these deals go awry and it costs the business more in the long run. I've gotten calls about managers who treat employees badly, but the business has kept that manager because he or she gets the job done.
However, sooner or later, the true cost of that manager will be revealed in the form of a lawsuit against the company, high turnover or, in some cases, the discovery of criminal activity. A common lament of the client is “I should have known.”
As we hear more disclosures of dishonesty in business, at the highest levels, and of those who cheated for a long time before getting caught, it can be tempting to wonder why we always follow the rules while others benefit from misbehavior. We need to remember that a small business community like Carlsbad, and even North County, is something like a family, certainly word gets around.
When we are honest with each other, we find infinite support in our community. Those who are dishonest cut themselves off. In times like these, where would you rather find yourself?
Many large companies now have ethics policies that include rules about honesty in the marketplace, respect in the workplace, conflicts of interest and other issues. It isn't just about complying with the law, but being fair and honorable, even while trying to make a sale.
It's good for business, good for employee morale and a good way to avoid liability. Encouraging complaints within the company is better than waiting to get sued. Employees should feel comfortable bringing a complaint to the highest levels without fear of losing their jobs.
If you have a small business, I'd encourage you to mention ethical behavior in your employee handbook and encourage employees to raise issues of concern. An open door can be among the best insurance policies there is.
After all, isn't business about making money? Aren't corporations soulless conglomerations of profit centers, revenue generators and cost cutters? Golden Rule? Hah! Whoever has the gold, rules!
Yet, there are many in business, owners, managers and employees, from professionals to unskilled laborers, for whom ethical conduct is the only option. For ethical people, there is little distinction between home and office, family and community and friend and stranger.
All are entitled to respect and honest dealing. For some, morality has a religious basis, but for others who don't believe that a supreme being is watching, perhaps it's a matter of how they see themselves, how they sleep at night.
We build our reputations over time, handshake by handshake, and in a community where we see the same people over and over, bad deeds will not go unnoticed. On the other hand, in large communities where you seldom deal with the same people twice, it's easier to get away with fraud and misrepresentation over a longer period of time.
Lawyers in Los Angeles have a reputation for treating each other with contempt. All agreements have to be confirmed in writing and it's said some attorneys can go for years lying to clients, judges and each other without adverse consequences.
In San Diego, particularly North County, that is not possible. The legal community is small and close-knit; judges talk to each other and those who deceive the courts and each other will not survive long.
Sometimes a business will tolerate bad behavior in order to make money. I've known clients to sign a contract knowing they can't trust the other party. Why? Because the deal is so good, or the money is sorely needed.
Invariably, these deals go awry and it costs the business more in the long run. I've gotten calls about managers who treat employees badly, but the business has kept that manager because he or she gets the job done.
However, sooner or later, the true cost of that manager will be revealed in the form of a lawsuit against the company, high turnover or, in some cases, the discovery of criminal activity. A common lament of the client is “I should have known.”
As we hear more disclosures of dishonesty in business, at the highest levels, and of those who cheated for a long time before getting caught, it can be tempting to wonder why we always follow the rules while others benefit from misbehavior. We need to remember that a small business community like Carlsbad, and even North County, is something like a family, certainly word gets around.
When we are honest with each other, we find infinite support in our community. Those who are dishonest cut themselves off. In times like these, where would you rather find yourself?
Many large companies now have ethics policies that include rules about honesty in the marketplace, respect in the workplace, conflicts of interest and other issues. It isn't just about complying with the law, but being fair and honorable, even while trying to make a sale.
It's good for business, good for employee morale and a good way to avoid liability. Encouraging complaints within the company is better than waiting to get sued. Employees should feel comfortable bringing a complaint to the highest levels without fear of losing their jobs.
If you have a small business, I'd encourage you to mention ethical behavior in your employee handbook and encourage employees to raise issues of concern. An open door can be among the best insurance policies there is.