| The Oxford English dictionary defines ethics as "the | | | | Ethical companies are less vulnerable to legal actions. |
| moral principles governing or influencing conduct." In all | | | | Businesses today are characterized by transparency. |
| communities, societies, organizations and cultures there | | | | The Internet has opened the doors to what used to be |
| are prescriptions and prohibitions that define morality. | | | | confidential information, and corporate wrongdoing is |
| Each community has its mandated, prohibited, laudable | | | | constantly being uncovered in cyberspace. A lack of |
| and reprehensible actions. When we become part of a | | | | ethical conduct can negatively impact the bottom line |
| larger community, the extent of our obligations and | | | | of an organization, often by necessitating expenditures |
| prohibitions expands. This is true of companies also. | | | | for litigation and fines, not to mention causing serious |
| Their acts - and the individuals that are part of them - | | | | damage to the firm's reputation. |
| affect positively or negatively on other businesses, | | | | Ethics can benefit the bottom line. |
| other individuals, and/or other processes. Ethics are of | | | | Ethics can benefit the bottom line by ingraining |
| major relevance to every individual, and that extends | | | | motivation and productivity in employees, thereby |
| to business as well. Every decision involves some | | | | leading to a good corporate reputation. A good |
| ethics. Whether negotiating with suppliers or customers, | | | | reputation will also strengthen customer loyalty and |
| hiring or firing employees, allocating responsibilities, or | | | | help maintain and increase market share. |
| launching a promotion, the matter of ethics is always | | | | All organizations have an ethical obligation to each of |
| present. | | | | the five groups that constitute them - owners, |
| Individual ethics and organizational ethics cannot be | | | | shareholders, employees, customers, suppliers and the |
| completely separated, since, after all, those who | | | | community - not only in terms of rules and obligations |
| perform the tasks in organizations are individuals with | | | | but in terms of values: freedom, equality, solidarity, |
| their own ethics and personal convictions about what | | | | ongoing respect and dialogue. The organization as a |
| should and should not be done at any time. Moreover, | | | | whole, with the guidance of its chief executives and |
| in the diverse work environment in which we live | | | | owners, must lead in the generation of three |
| nowadays, individuals bring ethical values that may not | | | | fundamental ethical elements that enable the |
| be consistent with those of the organization or other | | | | development of values: the ethics of responsibility, the |
| individuals. People make ethical decisions based on | | | | ethics in everyone's interest, and the ethics of the |
| their own personal values and sometimes ignore the | | | | organization. That is, an organization must facilitate the |
| ethics of the organization or others. It is important, | | | | development of its business ethics based on these |
| therefore, that an organization establish a code of | | | | elements: a strong corporate culture (collectively |
| ethics that calls for, among other things, high standards | | | | constructed values), the human talent as the main |
| of honesty, objectivity, diligence and loyalty to which | | | | asset of the organization, quality as a fundamental |
| everyone in the organization should conform | | | | aspiration, the combination of tangibles (material) and |
| regardless of his/her cultural background. | | | | intangibles (harmony, cooperation, warmth, avoidance |
| Ethics plays a prominent role in the buying process. | | | | of conflict), and concern for its customers, employees, |
| When is time to choose between you and your | | | | suppliers and competitors. An organization must |
| competitors, clients will go with the one that displays | | | | assume the social responsibility for its actions, exercise |
| the highest ethics in accordance with their own value | | | | leadership based on values, and govern a moral |
| reference framework. If you appreciate honesty and | | | | contract - beyond the legal contract - between it and |
| integrity, you will attract clients that place a high regard | | | | its members. |
| on those values as well. | | | | To sum up, laying the foundation of your business on |
| Clients reward ethical companies with loyalty. | | | | the basis of a code of ethics defined by what is |
| Let's suppose your client sent you a payment in an | | | | important to you, what your core values are and how |
| amount greater than the amount due on the invoice. | | | | they will contribute to your client's success and the |
| Do you elect to ignore the error and keep the extra | | | | increased greatness of the society are key to creating |
| cash for yourself? Or do you call your client and let | | | | sustained growth. Today organizations, regardless of |
| him/her know about the error? If you do the latter, | | | | their size, are required to have a clear and transparent |
| your client will always remember you for your honesty. | | | | moral code so consumers or customers, employees |
| You will be rewarded with loyalty, and your reputation | | | | and the general public can make rational choices. In the |
| will be increased. | | | | more sophisticated markets such codes become |
| Ethical companies attract more employees. | | | | deciding factors when choosing where to shop, where |
| If your company has a bad reputation and is usually in | | | | to work, where to invest, etc. |
| the news for scandals, complaints from employees | | | | Ethics should be consistent, clear and communicated |
| and customers, or breaking regulations and mandates, | | | | to all levels as part of an organization's unique |
| that will automatically scare away good, honest and | | | | organizational culture. Most big corporations understand |
| reliable employees. Remember, it's human nature to | | | | that a responsible organization is dependent upon a |
| look for those that share similar values and standards | | | | combination of virtuous people and professional |
| as our own. Now, imagine the effect that this will have | | | | integrity. |
| on your bottom line. | | | | |