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Everybody has a definition for business ethics of their own.
Even though there are many unethical business practices in today’s over materialistic world, there are still hopes for a better world and a cry for ethical capitalism is here. |
Is there a necessity or necessary benefit choosing profit with business ethics (ethical capitalism) than just profit making itself?
Business Ethics Necessary Benefit
As we had always stress, understanding the why is always the first thing to do before knowing the how in business and your personal life.
Let’s look at why business ethics is necessary and the benefits it could bring:
1. Build to last (sustainability)
A great business is supposed to build for providing values to people and survived over generations. Look at the big names in the market, Cocal-cola, IBM, Intel, Wal-Mart, Nike etc., they are not here for a few years but each of them last for at least more than 10 years.
When a business is genuine, people have good impressions to it. Just as a sincere person vs a dishonest person, which would you prefer to deal with? When you are branding yourself as an ethical and genuine business (of course, walk the talk please), chances are people recognize and gives high value to your business.
3. Create greate values
A business with ethics not only help in improving people’s life, but the value they bring will certainly helps mankind to leap forward to a better society and brighter future.
4. Being fair to the society
Even though there are possibilities of reaching egalitarian societies, it is a very subjective matter when it comes to fairness and equality. What the business could do is to keep the best effort in taking care of the community and the society when the profit making is in the process, and not sacrificing the disabled and the poor (or those with no status quo) just because they need to meet profit forecast or sales target.
People will be able to differentiate what is a sincere help than a help to create publicity or a helping hand that is driven by promotional effectiveness.
5. Do unto others as you would have others do unto you
We should treat people as we would like to be treated.If you don’t want to be ripped off, don’t rip off others. If you don’t want your business partners or clients to cheat on you, don’t cheat on your business partners or clients.
Business Ethics Necessary Benefit
Let’s look at a real life example.
In the late ’60s, when the Clean Air Act was being deliberated in the United States, American car makers spent millions lobbying against it, while Honda decided to develop more energy-efficient cars.
Honda’s cost was on innovation and thinking about how the future might be, and making a product that might fit the future better.
The other companies were spending their money on stopping the future from happening.
In that case, Honda won.
If you want to look at a recent example relating to the financial crisis, check into Holland where after the financial crash, there was a huge flight of money from all the normal banks into Triodos and Rabobank.
Why? Because Triodos and Rabobank are both known for being ethical and sustainable.
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