click to enlarge
While many businesses have codes of ethics, the words written in a formal code are valuable only if their intent is reflected in the actions of the people who represent the organization. A business cannot be any more – or less – ethical than the people who run it and who work for it. Within a company, people take their cues regarding the behaviors that are acceptable based on how they see the company's
leaders acting and the behaviors that they see being rewarded in their peers. Businesses that are managed by leaders who conduct themselves in an ethical manner and who reward employees for doing what is right are much more likely to be characterized by a positive ethical culture.
If an organization's corporate culture is characterized by ethical behaviors, then the decisions that are made by the company's leaders and workers are likely to be ones that are socially responsible rather than motivated solely by a profit-seeking motive. Socially responsible business decisions are ones that are made from a stakeholder perspective, focusing on coming up with problems that take into account the needs of everyone who has the potential to be impacted by the company's actions. By focusing on the impact an action will have on all stakeholders rather than solely on the bottom line, companies can avoid making decisions that are on the wrong side of the line between right and wrong.
Individuals who work for businesses make decisions every day, and their actions can impact the lives of many other people. When businesspeople make decisions that are not ethical, many people can be hurt – including employees, customers, and members of the general population -- as well as the business itself. Companies that are operated by people who do not choose to do what is right are often entities that do not survive for the long term. Often, making business decision that are counter to what is right may result in short term profit but lead to eventual demise of the organization.
