As a business ethics keynote speaker, business ethics consultant and book author, my mission for the past two decades has been to explain business ethics to executives who are, at times, obdurate to understanding the consequences of their actions.
To begin this discussion of how can business ethics be explained easily, I’d like to recommend an August 2022 article that appeared in Business News Daily entitled: A Culture of Ethical Behavior Is Essential to Business Success.
The article is in large part based on a Notre Dame research project at their Mendoza College of Business. The lead author Kaifeng Jiang stated:
“Both high-quality service and low unethical behaviors are important to predicting business unit performance. This is especially so when the market is very competitive, because then the customers have a lot of options and could … switch to another product or service provider.”
Shouldn’t it be more sophisticated than that?
Just one more brief quote from the article is essential at this point:
“Jiang said business owners could promote an ethical culture by hiring or promoting executives and managers who are genuinely dedicated to upholding high ethical standards.”
Though there are literally dozens of studies as to what constitutes explanations of business ethics cultures, it never ceases to amaze me as a business ethics motivational speaker and business ethics consultant that most authors gloss over the simplest approach to business ethics of all: hire and promote those who are ethical in their mindset.
Yes, we can get more complex, but the elements in explaining ethics are in place with what has already been stated.
- High quality service means much more than flattering behavior. It is placing the needs of the customer ahead of corporate interests, a vision that is sadly lacking in many businesses these days. Introducing ethical behavior into this dedication dictates an absence of price-gouging, stock manipulations, poor contracts, sub-standard products and certainly an elevation of equity. In other words, every client or customer or partner must be treated with respect and kindness on a equal basis. It is the basis for modern-day ESG.
- Low unethical behaviors have shattered thousands of organizations over time. The easiest of all easy explanations is to review scandals where an organizational decision was made to intentionally mislead customers. It has recently been seen in companies as varied as pharmaceuticals to automotive to stock and/or bitcoin manipulation. In order for such decisions to be made, executive leadership must decide to create an overt or hidden effort. Usually, the effort requires upper management to coerce employees, from retail bankers to sales reps to public or investor relations people.
The level of sophistication in terms of deceiving customers or vendors may be complex (“It is too complicated for mere customers to understand”), however the intent is altogether clear. A choice has been made to choose an unethical path. Clearly thousands of employees have recently walked-off jobs due to a perceived lack of ethics on the part of executives.
It may take a lot of effort to cover up environmental damage however, the reasons for committing such acts are fairly simple to understand.
How can Business Ethics be explained easily?
The question is fairly easy to explain by emphasizing that every choice has a consequence. I may not understand how a medication works, but I do understand an intentional effort to bribe physicians or to add profit margins of 1,200-percent. I don’t know much about how a diesel engine works, but I can surely comprehend when upper management of an automotive company coerces the marketing department to mis-represent emissions data.
As a business ethics keynote speaker, business ethics consultant and book author, I get nervous when an organization tries to obfuscate a fact e.g., “it may seem like a bribery but it really isn’t.” Generally speaking, yes, it is. Or, “Yes, we have had women come forward who claim to have been harassed,” but we’re not that way. Generally speaking, yes, you are.
Ethical organizations do not need to explain the truth. It is there for all to see, and requires no further elucidation.
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