Ethical Behavior in Business

What is Ethics?

Ethics involves:

• Having guidelines for human behavior

• Studying moral choices and values

• Choosing between right and wrong.

What is Ethical Behavior?

Ethical behavior means:

•knowing the difference between right and wrong

•consciously choosing to do right.

What is a Code of Ethics?

A Code of Ethics is:

•A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture.

•The code of ethics is in writing and available to everyone who is expected to abide by them.

What is Business Ethics?

Business ethics means applying principles of right and wrong to situations in the workplace.

What is a Small Business’s Ethical Responsibility Towards Customers?

•Treat all customers with respect.

•Be honest.

•Do not exaggerate the merits of your products/services.

•Inform customers of possible dangers of your products/services.

•Handle all disputes fairly.

What is a Business Owner’s Ethical Responsibility Towards Employees?

•Establish an ethical workplace.

•Create a written code of ethics to set guidelines to help the business owner and employees make ethical decisions.

•Establish company policies and procedures tolet business owners and employees know how to act in certain situations.

•Treat all employees fairly.

provided by Office of Government Ethics, Washington, DC

How Can a Small Business Show Its Ethical Responsibility Towards the Community?

•Contribute money to charities, cultural institutions, and other reputable causes.

•Get involved.

•Donate products and services.

•Sponsor/support fundraising for non-profit organizations that support the community.

Ethics in the Small Business

Having a clear, understandable, fair code of ethics is important to the success of a small business.

Everyone involved in the business should be aware of what is expected of them.

Many companies not only have a code of ethics but require it to be signed by every employee.

Failure to abide by documented, established code of ethics can result in a job lost.