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Ethics in Business

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Ethics can be used to gain a competitive advantage in business. Of course, there is the other side of the argument that says the lack of ethics can also be used to gain a competitive advantage. Unfortunately, both statements are true. Then again, it is possible for two businesses to have different definitions of what is ethical, and both may be correct. The problem for businesses in Prince George is defining ethics; how can they be ethical and still maintain a competitive advantage, and what is required to be considered to be an ethically run business? 

As we become more involved in the global economy, we also become more aware of the fact that laws and ethics are not always the same in all countries or industries. This may in fact result in a business operating differently, depending on which country you conduct business in. For example, bribes are a moral issue where the lines of laws and ethics become entangled, blurry and confusing. While operating in Canada you can be sure that there are laws that do not permit the exchange of bribes. Unfortunately, in other countries bribes may be permitted or are considered a normal part of doing business. In fact, businesses and people who do not submit to bribery in some countries may find that they will be ignored and abandoned.

So what is a business operating in Prince George supposed to do? You want to grow your business in the global marketplace, stay competitive, but also stay in business while staying out of jail. While the definition of what is ethical is your choice, once you have decided on that definition, there are some processes you can undertake to ensure you meet that definition. While this may in fact influence your decision around which markets and countries to expand into, it will also help provide some stability at home and define the type of business you want to be. You may want to refer back to your business plan at this point to see if your definition of ethics will have any impact on your future plans and goals.

If you do decide to operate as an ethical business, you want to ensure you not only tell others, but also show them that you are, in fact ethical. If you are going to operate in an ethical manner then you should use it as a competitive advantage. Make your competitors meet your standards. A good idea is to have an ethics statement that is available to all, including your customers, employees, suppliers and the general public. This statement is as valuable to your business as your motto is. All your business decisions and actions should be undertaken in accordance with your ethics statement. Remember, you want customers to trust you. If they trust you, they will continue to do business with you.

You will also want to ensure your employees are instructed and trained in what your business considers to be ethical and unethical. Employees are your connection to your customers and suppliers. How they operate and act will influence how your business is perceived. Don’t forget that your employees will already have their own definition of what is or isn’t ethical. Be careful not to insult them or treat them differently if this is so. Always remember, different cultures define ethics differently.

Going hand in hand with ethic is the idea of privacy and personal property protection. In British Columbia there are laws that are meant to ensure that your records are kept safe, both from employees, customers and others. Not every country has privacy laws and those that do may not have the same standards as Canada. Ensuring you comply with the privacy laws will go a long way to being regarded as an ethical business. 

While no one can tell you how to conduct your day-to-day business or should judge you based on their definition of ethics, you should remember that being consistent is one of the most important factors in gaining a competitive advantage. If your customers can depend on the service, quality and ethical standards of your business, they are more likely to start or continue to do business with you. The only thing worse than dealing with a business that has no ethics, is dealing with a business whose ethics are always changing. Being consistent, even with your ethics, is important to your success in business.

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