Business Ethics and Integrity: Long-Term Benefit
We live in a world where every day we read and hear about cases of corruption. At every level. Corruption in governments, in the handling of public and private funds, in the awarding of contracts. The fight against corruption has become a flag for many organizations and a political argument on a global scale. Hence, the importance of taking into account ethics and business integrity in our entrepreneurial ventures.
“Honesty is the Best Policy.”
What is corruption?
The Oxford Dictionary defines corruption as:
“Dishonest or illegal behavior, especially of people in authority.”
In summary, it refers to practices in which negotiations and organizational management—both public and private—are carried out for personal financial gain, at the expense of the benefit that others would be entitled to receive, if actions were taken in accordance with established and agreed-upon moral standards.
Unfortunately, our daily lives as entrepreneurs are not exempt from these situations. Not only in cases where we are victims and end up disadvantaged by corrupt acts carried out by others that negatively affect us, but also in cases where the temptation to engage in acts that could be considered “corrupt” arises as an option in our decision-making.
There are actions that are obviously and globally perceived as wrong, generally and across nearly all societies: behaviors such as theft, deceit, lying, extortion, abuse. These are not the behaviors I wish to discuss today, since they are clearly punishable by law and generally well understood.
There are situations in which corrupt behavior appears disguised, hidden behind innocent convenience, can go unnoticed or unpunished for years, and yet does not align with the ethical business standards we must uphold and follow if we want to develop ventures that are solid, reputable, beneficial, and useful not only for ourselves, but for everyone within our sphere of influence: ourselves, our partners, employees, suppliers, clients, and the community or society in which we operate.
That’s why today we’re going to talk about Business Ethics.
Business Ethics refers to the set of ethical and moral principles that govern the business world. It deals with the moral questions of business practice. And by moral questions, we mean behaviors that are globally accepted as upright and honest.
The Oxford Dictionary defines “ethical” as:
“Connected with beliefs and principles about what is right and wrong. Morally correct or acceptable”
The race to achieve mere economic gain in a business venture sometimes becomes an enemy of morality and integrity. We face situations where bending the rules slightly may benefit us and “go unnoticed,” and we end up accepting behaviors that could be seen as unethical or immoral.
Sometimes, the line between what is morally right and what is morally questionable is very thin.
How do we establish this line and respect the limits between what is morally right and what is morally questionable?
For this, we turn to Business Ethics.
Business Ethics refers to a set of globally accepted standards that go beyond simply being honest, not stealing, or not openly harming others.
When we talk about morally correct business behaviors, we mean things like:
Being transparent and always acting truthfully
Paying fair wages to collaborators
Paying fair rates to suppliers
Being loyal to business partners
Acting responsibly
Treating staff appropriately
Respecting the environment
Offering quality products and services
Dedicating the proper amount of time to work
When we talk about morally questionable behaviors in the business world, we include, among other things, actions such as:
Misleading advertising
Offering poor quality products or services to cut costs
Unfair competition
Wasting time at work
Paying commissions to receive favors at the expense of others or organizations
Discrimination
Harassment
Ecological disrespect
Providing misleading information or omitting necessary details
Breach of contracts
Integrity: A Required Attitude for Entrepreneurs
Integrity is described as being honest, ethical, authentic, and responsible.
Being consistently upright and honest in managing our ventures is not always easy and might reduce or sacrifice immediate financial gain. Often, the temptation to make decisions that blur the lines of morality arises—for winning a contract, receiving additional returns, or gaining a competitive advantage in our market—and staying on the right side is not easy.
Nevertheless, the long-term benefits of remaining true to the principles of business ethics go beyond just image. They ensure greater sustainability over time, enhance our potential for growth, and increase our likelihood of becoming a point of reference in our markets.
Business Ethics
For maintaining business ethics to be objective, straightforward, and reach all levels of the company, it is necessary to have a clear document outlining the principles and values that govern company behavior, along with a well-defined system for reinforcing conduct that aligns with those principles and penalizing conduct that goes against them.
Business ethics in our ventures must begin with ourselves, but to be truly effective, they must expand throughout the entire organization. Therefore, we need not only to lead by example but also to establish a clear corporate culture that supports these values.
Let us always advocate for business integrity in every decision that affects our ventures.
Integrity, honesty, ethics, and uprightness must be a fundamental part of the belief system that defines our values. In this way, our attitudes will be based on this belief system and will predispose us to act accordingly. Thus, our business and personal behavior will be honest, integral, and upright, to the long-term benefit of our venture.
Remember that shortcuts do not always lead to a better destination. Morally questionable behavior in the business world may seem like a quicker route, but it is a high-risk path for your venture.
