How to Check Your Ethics Before A Business Decision
Originally published: 15/11/2019 16:20
Publication number: ELQ-11399-1
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How to Check Your Ethics Before A Business Decision

Most people agree on the fundamental principles of ethics, however follow these steps to ensure they are carried out.

Introduction

Most business leaders I know clearly understand the difference between legal and illegal activities, but often are not so clear on the line between ethical and unethical. Unfortunately, there is no universal code of business ethics, written down and enforced by some external governing body. We all have to rely on our own interpretation of what will maintain a working level of trust between all constituents.


For example, most would agree that a lending manager must look for the same qualifications from a friend that he or she applies to other applicants. But what do you do when making the right ethical choice will almost certainly hurt that friend badly? The problem is that so many choices fall into a gray area, and you may not even see the ethical creep that is happening in your actions.


Many professionals I know in business have the sense that an adherence to ethics is spiraling downward in business, and most don’t believe they know how to make a difference. They don’t realize that if they don’t make the effort to be part of the solution, out of indifference or fear of jeopardizing their own careers, then they really become part of the problem.


In my view, most people agree on the fundamental principles of ethics – integrity, objectivity, competence, confidentiality, and professional behavior. They just need to follow a set of practical steps, including the following, to get beyond the emotion and the theoretical, to arrive at pragmatic yet ethical solutions to tough problems that we all encounter in business:

  • Step n°1 |

    Isolate the legal and moral issues that frame the issue.

    Ethical issues are usually driven by an attempt to accomplish a desired objective, without overtly violating some existing legal or moral code. You can’t be a change agent to improve business ethics without understanding the constraints, and the gray areas that surround them.


    For example, most would agree that bribery to win a contract is unethical, but how far can you go in nurturing a relationship with a key vendor? Defining legal and moral constraints is only the first step. Then you face cultural and historical norms, and your own integrity.
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  • Step n°2 |

    Identify any hidden objectives driving a possible outcome.

    Often it helps to analyze a list of likely results, and reason backward to find who benefits and who loses. The best solution for a tough ethical challenge is one that could be surfaced on the front page of the newspaper the next day without being mis-interpreted by an unbiased customer.


    In the previous example, if a given vendor has a family connection to you, legal and moral constraints are not enough. If the information surfaces that you may have the intent of favoring family or friends, your analysis of qualifications must be beyond reproach.
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