Written by: Roderick Mason, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
In the business world, where everybody is running after getting the most profits from their consumers, winners place their ethics above all. These business ethics can drive a lot of consumer attention towards you and prove you to be a better seller than your competitor!
Business ethics are the rules that always let you be higher than your rivals, not only in the numbers but also in values. You are always above those that don't value humanity or human ethics and hence start losing their consumers. Gaining consumer confidence must be your ultimate goal if you wish to stay in the minds of those who buy a product or a service from you.
We will talk about all the business ethics that you need to practice so that you can gather consumer confidence. A very few directives in business can override the main mission of boosting their shareholder wealth, and at present, this means increasing the time profits.
Such intense focus on a single variable in a short time leads to having a limited view of what makes up business success. Measuring actual profitability takes up a long-term view and perspective. We may not accurately measure success in a quarter of a year, and more time is needed for this. In fact, a product or a service is required to find a suitable market.
Then to have a grip against its competitors or for a new business policy to be felt. Satisfying the consumer's demands, being socially responsible, and acting over and beyond the basic needs, all take money and time. But the extra cost and effort will then result in profits over the long run.
Place your long term thinking into profitability and success factors.
In this era, many commentators say that ethical business leadership is rooted in doing right by all stakeholders directly affected by operations in a firm. This means that business leaders do right when they give thought to what is ideal for all who have their stake in the company. Not only this, firms get tremendous material success when they take such an approach, mainly over the long run.
A company enters the social contract having society as a whole, the implicit agreement in all members to cooperate for their social benefits. Even when a company pursues the maximization of stockholder profit, it should also acknowledge that society will be affected a bit by its operations.
Being an ethical business holder, which corporate culture do you value?
All of the positive goodwill that is generated by ethical business practices, in turn, creates longterm business success. as a result, studies have shown that many ethical and enlightened firms in the US constantly outgo their business competitors.
Hence, from a long-term view, leading your business ethically is the wiser option that generates goodwill for the whole company in stakeholders, gives a positive corporate culture and supports profitability.
You may test the validity of this claim by yourself. When you choose a company with which you will be doing business, what factors influence your choices? Let us also say that you are looking for a financial advisor for the investments you make and retirement planning. You have found many candidates that have the right credentials, experience, and fees are the same.
But if one of these firms is above others as it has a reputation that you find is well earned, for telling its clients the truth and suggesting investments that seem based on clients benefits. Wouldn't this be the right option for you to trust with your investments?
What is corporate social responsibility?
Though profitability is what everyone wants to acquire in the business world, keeping ethics and business together is what winners seek. If you appreciate the positions of many various stakeholders, you will be on the right way to understand the idea of corporate social responsibility.
It is the practice by which many businesses see themselves in a broader context, as a member of society in certain implicit social obligations. There is a vast difference in legal compliance and ethical responsibility, and the law also doesn't fully address ethical dilemmas businesses face.
This responsibility also ensures that the company is engaging in all ethical practices and policies that follow the company's cultures and missions.
Stockholders, stakeholders, and goodwill:
Managers focus on stockholders, mainly those holding the most significant number of shares, as these powerful people and groups may influence the managers to keep their jobs and get dismissed.
Many people believe that the main reason for a business is to boost stockholders short term gains. But considering only the stockholders and the business's short-term impacts is one of the many common errors business managers often make.
It is mainly in the long-term interest of a business not to accommodate only the stock owners but also to take into account a broader array of stakeholders and their long-term and short-term effects for a course of action.
Conclusion:
A long-time view of business success is essential for measuring profitability. All stakeholders profit from managers' ethical conduct that also boosts the business goodwill and supports profitability.
Customers always trust a business, which shows its commitment to a positive long-term impact. By practicing corporate social responsibility, a company sees itself in a broader context as being a member of society in specific implicit social rules. Its overall effects the environmental and social well-being.
You can always bring your business onto the ethics that drive consumers into buying from you. Though it is hard to regain your consumers' lost trust, it is worth a try.
The ideal solution to build up your ethical culture in your company is to learn from your rivals or hire professionals that would steer you in the right direction.
Roderick Mason, Executive Contributor Brainz Magazine
Roderick M. Mason is a Certified John Maxwell Speaker Trainer Coach and the founder of Holistic Coaching Solutions. A platform focused on delivering high-end corporate training services. He is a Certified Bucket List Coach, a Certified CBMC Leadership Coach, a Certified Primal Health Coach, and a Licensed Diversity & Inclusion Trainer. He is an avid seeker of knowledge who highly appreciates the notion of continuous improvement and growth.
