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Understanding the relationship between business and ethics

by D. P. Noe

Created on: January 01, 2009   Last Updated: May 09, 2009

Making ethical considerations occur frequently in the business world. The challenge in making an ethical decision is whether an individual will follow through on their own value system or follow the leads of others with different value systems. Familiarize yourself with the expected ethical decisions that are practiced in the organization you are working for and whether you are able to follow those practices.

Ethics deals with the principles of right and wrong, good or bad; it governs the decision making process. Making ethical decisions are part of the business world. When you are making business decisions, you must address ethical considerations. For example, there are times when you may have to make a decision if you will pay for favorable decision you are looking for, or consider exaggerating what your product can actually do. Ethical decisions are a challenge for leaders in organizations and how they act in response to their own values.

You may be asked to go along with cultural practices that you totally disagree with. You may be aware that someone is paying bribes, and should you turn your head and look the other way or report it? You may be aware of unfair hiring practices where more qualified individuals are not given the opportunity to get a specific job.

It is wise to review an organization's code of ethics and decide if you can work in that environment. A business should provide a code of ethics that has a clear understanding of what is unethical. It should give direction on how situations that are unethical will be handled and provide processes where the employees can visually see ethical issues are addressed.

If you are faced with an issue of ethics, there are certain questions you should be asking. Look at exactly what is the issue and what are the consequences if the issue is not handled ethically. Reference your organization code of ethics, and evaluate if the situation is harmful or even dangerous to the employees or organization. You should know who is the go to person in your organization is, in case you need assistance when faced with ethical decision making.

There are many examples in the recent media of leaders and CEO's of organizations that have been involved in questionable and unethical behaviors. This is a red flag that shows that questionable behaviors and unethical practices need to be challenged and stopped. Use you organization code of ethics to guide you. Employees who report concerns about unethical practices should be taken seriously and not get into trouble for reporting questionable practices.

If there is a situation that falls into a gray area, search for advice from a colleague that you can trust. Be careful when you choose someone to get advice from. This person should be discreet and not let the cat out of the bag and tip off people before you are ready to do so.

If you are placed in the middle of unethical business practices, stick to the facts and not the personalities of individuals involved. Do not jump the gun and assume that an individual is unethical. Sometimes individuals act with incomplete information, or there may be information you have not been made aware of.

If you remain silent about an unethical situation, it can imply consent. Never sit on the sidelines when you are aware that an individual or individuals are acting unethically. It is important as part of an organization that you maintain ethics in line with the standards that are spelled out in the organizations code of ethics.. You are responsible for ensuring your own ethical behavior and that you do not become part of any unethical practices.

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