August 7, 2020  
 
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Business Ethics

 

Ethics of Business Management

Written by Nidhi Ann Raj for Gaebler Ventures

Professional morals and ethics must be practiced and promoted by the leadership of every company.

Everyday we hear stories of businesses going 'bad' or 'corrupt', employees cheating on employers etc.

The root cause of this issue is the diminishing ethical responsibility one feels towards the company as personal growth increases. As the company grows, managers tend to put their personal rewards before the company's welfare. This attitude is slowly passed on to all employees, small and big alike. Hence, it is the responsibility of company heads to enforce a strong base of ethical behavior and spread high values and principles among the employees.

To start with, you could have a set of Dos and Don'ts in place- an organizational code of Ethics. This code should be written with the consent of all the members of the board. It is their responsibility to define the framework that shapes the company's work culture. It can be elaborate enough to touch all areas that can cause a conflict of interest among people working in the company. Have a Non-Disclosure agreement in place (more of a legal document), which forbids your employees to discuss non public issues, related to the company, to people outside the organization.

You could hire a Compliance Officer, whose prime responsibility would be to check if all employees adhere to the company's policies and procedures. Discrimination of any sort, triggers unethical behavior among employees. Address conflicts among teams with a fair and unbiased attitude and in a transparent fashion. Also if employees feel their personal space or privacy is compromised, they tend to retaliate by misusing company assets or policies. A people oriented company, that caters to the needs of its employees, on time, is most expected to receive the loyalty and commitment of its staff.

An ethical environment should not only be preached, but should also be practiced by the management in all corporate decisions and actions. The company should also display its social responsibility by promoting non-economic social activities like charity events or events that promote environmental awareness. Make your employees aware that the management is not run by people who are only profit focused. Remember that good (and bad) thoughts and actions spread from top to bottom.

Nidhi Ann Raj is a gifted writer who is currently pursuing post-graduate studies at George Brown College in Toronto Canada, where she is specializing in Marketing and Finance.

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