By Freddy Tyapa
In modern business conducts we have all noticed one outstanding subject that always comes to everyone mind among engagements when it comes business conducts and how corporations do it.
One of the questions that arises commonly “is that the right way? Well, the moment it comes to that we official are engaging in a topic of ethics. For the past decade or so organizations have adjusted their business conducts to not merely focus on the bottom line but also to highly conduct business in the most ethical way.
Often times the concept of ethics is compared with morality however these are two different approaches which are of a close nature. According to the oxford dictionary Ethics is defined as the standards of right behavior.
Ethics is about with what Is good or right in human interaction. The key focal points of determining ethics are the self, the good and the other.
Ethical behavior results when one does not merely consider what is good for oneself but also consider what is good for others. It is very important that each of these three pillars are included when making ethical decisions or defining ethics.
Corporations are some of the key business operators with which comes with great responsibility as they are always on the spotlight when it comes to the way they conduct their operations especially in a highly regulated environment.
Having policies in place which should align with ethical business practice becomes mandatory in an ever-transforming market to safeguard the company reputation and protect its image.
Day to day decisions is made in corporations on procurement, sales, marketing, renumeration, hiring and client services etc. and this are some of the areas where ethical conduct needs to be practiced. In order to assess whether a decision is ethical the below questions need to be able to be address before a decision is considered ethical; is it legal? Does it meet company standards? Is it fair to stakeholders? Can it be disclosed outside the corporation?
- Is it legal?
The businesses are required to operate within the legal limitations within its jurisdiction. Any action or decision which it makes should be first classified to be legal before it is even considered. Ethical conduct requires that any action should be first legal. A decision making which is legal already lays that the practice is acceptable as all citizens are able to do the same without any contradictions or abide by it. The corporations all have policies which align well with each specific department like Human resource department being fairly familiar with the labor law that guides on recruit, dismissals and retirement. When it comes to decision making if the response to the legality of the act is Yes, then we could conclude that it is indeed ethical.
- Does it meet company standards?
Every corporation has set standards to which it holds itself to operate or regarded as such. When a decision is bound to be made it should be done in line with the company standards. Corporations need to clear formulate their standards to enable each and everyone of the decisions to consciously make ethical decisions that aligns with their set standards. Businesses need to have a code of ethic policy with which it should familiarize with its employees in general terms. When a company’s standard test is applied and it turns out that a decision is colliding with the ethical standards set, the decision will need to be disregarded to safe guard the corporation.
- Is it fair to stakeholders
A stakeholder can be classified as anybody that can be affected by a decision made by the business. When making decision that are ethically sound, we need to practice fairness to all parties involved in the decision. Ethical conduct entrust that all parties are treated fairly and equally on matters. This decision-making approach requires that you determine how a decision will be perceived and experienced by those who will be affected by the decision. Corporations normally do engagements with all stakeholders across the board to have an insight on how specific decisions would impact them beyond the organization itself.
- Can it be disclosed outside the corporation?
This question is key in a sense that it clears the way we would feel a specific decision made can be accepted outside the corporation. If the answer to the above is a NO – we would conclude that the decision was not ethical. The worst-case scenario to determine whether the decision approached was ethical is to imagine it being in the headlines of newspaper or news, how would that make you feel? Will you be comfortable with it or not? Will you be able to provide reasonable responses to the public, the good and socially acceptable context? If you’re comfortable to give this response in private and public platforms the decision can be considered ethical.
In business mantra’s that once existed like ‘the business of business is business’ cannot be the only standards that should be followed on conducting business. Ethic create a environment were considerable decisions are made. This approach limits the possible negative impact that businesses may impose on the employees, clients and stakeholders at all times. Business always needs to be conducted in an ethical and moral way.
*Freddy Tyapa – A Namibian seasoned banker and writes in his personal capacity.
