The number of small businesses in the United States reached 31.7 million in 2020. This number represents 99.9% of all businesses in the country. Ensuring that these companies are trustworthy begs the attention of the importance of ethics in business.
They say “money makes the world go round” but is that money earned in a way that positively impacts our communities, families, and the world? Without business ethics, greed and power could snuff out the true purpose of business – helping people get what they need and want for their life. Keep reading to discover the three key traits of an ethical business.
Importance of Ethics in Business
Many businesses today believe ethical practices are not of high concern. They are failing to create and enforce internal policies that address the ethics of their business practices.
This attitude has led to an increase in shady business practices such as insider trading, price-fixing, racial discrimination, and sexual harassment.
1. Have Strong Ethical Leadership
There is no such thing as bad businesses only bad business leaders. The leaders of a company must hold themselves to a high standard. Leaders should make decisions that have moral and ethical considerations.
The characteristics of ethical business leaders include treating employees and customers with respect. Protecting and valuing the human rights of everyone involved is the goal of ethical business.
It can be difficult to hold leaders responsible for their unethical actions because of their power and influence. Even so, we must stand up and demand that our business leaders behave honorable.
2. Never Sacrifice Integrity
Businesses, no matter how big or powerful, are not above the laws created to protect the very people they owe their success or failure to. Open and honest communication on the intentions of the business and its practices is key to building a reputation of integrity.
A business must be willing to uphold its commitment to its employees, customers, clients, and business partners. Especially if doing so may result in loss of profits. After all, when profit trumps integrity, business-driven capitalism will fall and crumble under the weight of injustice.
3. Environmentally Friendly
An ethical business practices caution when it comes to protecting the natural world that we call home. The world is on the brink of a severe environmental crisis. We are facing overpopulation, scarce resources, and climate change to name a few.
An ethical business prioritizes environmental sustainability. Our businesses must do everything they can to make sure they are not further harming the environment. For more information on the challenges businesses face during this age of world-wide health and environmental concerns read on here.
A Better Future
Humanity cannot afford to deny the importance of ethics in business. We all strive and hope for a better future for our children and for humanity in general.
It is only through the shared values of people that we will conquer our social, financial, and political challenges to build a better future for us all. Keep reading our blog to help you in running a successful business.