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<\/a><\/p>\nTable of Contents<\/strong><\/p>\n <\/a> <\/p>\n Business ethics are the guidelines a company establishes that help teams make moral decisions. At the highest level, you can think of them as a cheat sheet for what each company defines as a \u201cgood\u201d and \u201cbad\u201d practice.<\/p>\n So, why do you need them?<\/p>\n In my opinion, the best answer comes from Harvard University<\/a>, which argues that business ethics comes down to \u201cdifferent interpretations of what\u2019s ethical.\u201d When faced with the same situation (especially a \u201cgray area\u201d), different people will decide on a different approach \u2014 that is, unless they have business ethics to lean on.<\/p>\n <\/a> <\/p>\n Business ethics relate to all groups \u2014 your investors, customers, and employees alike. Here are a few reasons why it\u2019s worth putting them in place.<\/p>\n Let\u2019s start with the obvious \u2014 businesses that act unethically might face legal action. Volkswagen, the German car manufacturer, is the perfect example of how not<\/em> to act. Back in 2015, they caused a scandal later known as \u201cDieselgate.\u201d<\/a><\/p>\n To cheat on emission tests, the brand installed illegal software in its diesel cars. It detected when the vehicle was undergoing testing and altered its performance to meet regulatory standards. In reality, it emitted up to 40 times the allowed levels of pollutants during regular use. Volkswagen deliberately deceived consumers who were unaware of how much environmental harm their cars were causing.<\/p>\n The company faced lawsuits and had to pay $30 billion globally in settlements and regulatory penalties. Not only did the business suffer financially, but it also damaged its brand reputation.<\/p>\n I think that companies should treat customers\u2019 trust like Faberg\u00e9 eggs. Trust is fragile. Sometimes, the damage is irreversible.<\/p>\n While I\u2019m sure you\u2019ll agree that Volkswagen landed on its four feet and few people remember the scandal from a decade ago, some brand names will forever be tarnished (think: Wells Fargo, a bank that had to pay $3 billion<\/a> for illegal and unethical practices).<\/p>\n Business ethics, such as fair treatment and transparency, hold everyone in your organization accountable for their actions. They help ensure that all the information you share with your clients (whether on the service, product, or the company itself) are true. The more open and honest you are, the stronger their belief in what you do.<\/p>\n As opposed to what many people think, it\u2019s the ethical companies that make the most profit. People prefer to buy from brands that match their values, and they\u2019re often willing to pay a premium price for ethical products or services.<\/p>\n Etisphere first launched the World\u2019s Most Ethical Companies recognition program<\/a> in 2006. Two decades later, brands like Pepsico, Aflac Incorporated, and Allianz were among the most ethical businesses in 2024. They also discovered that companies that prioritize business ethics<\/a> outperformed their competitors by 12.3% between 2019 and 2024.<\/p>\n This has become particularly noticeable post-pandemic. In the last few years, I\u2019ve seen a few interesting studies that directly link employee retention and talent acquisition to company values.<\/p>\n The most eye-opening statistic I saw comes from Qualtrics, which found that 54% of workers<\/a> would choose a lower-paying job if that meant they were working for a \u201cmore ethical\u201d company.<\/p>\n I\u2019ve seen this first-hand. At one of my previous companies, I worked with an incredibly skilled marketer who moved to our company from a large corporation. Initially, I thought they decided to move because they were offered a higher salary and the ever so clich\u00e9 \u201copportunity to work in an innovative environment.\u201d<\/p>\n Eventually, they told me they decided to leave the previous company for ours as the latter was much closer to their personal, ethical values \u2014 even though it came with a salary cut.<\/p>\n <\/a> <\/p>\n Acting with honesty and following strong moral principles irrespective of a business situation. This includes being truthful, transparent, and consistent. For example, staying away from deceptive marketing or financial reporting.<\/p>\n Treating all stakeholders, including employees, customers, suppliers, and competitors, equally and without discrimination. This includes offering the same opportunities to everyone, irrespective of their race, gender, or background.<\/p>\n Taking responsibility for all business decisions \u2014 no matter their consequences \u2014 good or bad. For example, recognizing and fixing errors in a product or service.<\/p>\n Acknowledging and respecting the rights and interests of all those affected by the business, like employees, customers, investors, and the community. For instance, offering a safe work environment and fair pay.<\/p>\n Operating in an open and clear way and providing honest and accurate information to all stakeholders. For example, informing investors about financial performance and potential risks.<\/p>\n Following all relevant legal standards and avoiding any illegal activities.<\/p>\n You might be wondering if legal compliance should be an ethics\u2019 pillar \u2014 after all, it\u2019s not a company choice but a necessity. I believe it should. Many local and global regulations prevent businesses from engaging in illegal and<\/em> unethical behavior. They help companies take a stance on important topics like equal opportunities and data privacy.<\/p>\n Running a business in a way that minimizes its negative impact on the environment and society. This is one of the newer principles, which became particularly important with global and local net-zero pledges<\/a>. The goal of this principle is two-fold:<\/p>\n Being faithful in commitments made to customers, employees, and other stakeholders, while also avoiding conflicts of interest.<\/p>\n A great example can be respecting confidentiality in client relationships \u2014 not only because the contract requires it, but also to show integrity and retain trust.<\/p>\n Understanding and addressing the needs and concerns of stakeholders with compassion and consideration. This shows respect towards everyone who makes up the business as well as its clients.<\/p>\n For example, you could show your pledge towards empathy by supporting employees and customers during economic downturns.<\/p>\n Striving for high-quality performance and constant improvement in all aspects of business operations. This is an umbrella term for a number of approaches, like regularly upskilling your staff, auditing your existing processes, or constantly exploring new technologies that can make you more competitive and<\/em> ethical.<\/p>\n <\/a> <\/p>\n So, how to make sure you run your business ethically? I\u2019ve asked a few experts to share their thoughts.<\/p>\n First of all, it\u2019s absolutely necessary to keep transparency at the top of your mind and let it guide you in all your actions. Being transparent should keep you out of trouble \u2014 after all, if you\u2019re not doing anything wrong, you won\u2019t have anything to hide.<\/p>\n Joy Aumann<\/a>, a licensed realtor (CIPS), interior designer, and founder of LUXURYSOCALREALTY<\/a>, told me that she made it a priority to be transparent and make sure clients know exactly what they\u2019re stepping into. Whether it\u2019s discussing a property\u2019s features, its potential, or even its limitations, being upfront builds trust and prevents future surprises.<\/p>\n \u201cI\u2019ve had buyers appreciate that I\u2019ll walk them through every detail, from disclosures to local market insights, without glossing over anything. For example, I once worked with a client purchasing a coastal home. Instead of focusing solely on its beauty, I outlined details about flood zones and long-term upkeep costs. They valued the transparency and said it gave them confidence in their decision,\u201d Aumann said.<\/p>\n David Hunter, the founder of Local Falcon<\/a>, also agrees that ethics in business mean being upfront with people, even if it makes you uncomfortable.<\/p>\n \u201cEarly on, I worked with a small business that wanted quick results from SEO. Instead of selling them a dream, I broke down the process honestly \u2014 how rankings take time, what they could expect, and why shortcuts would hurt them later. They stuck with us because we were clear from day one. That experience reinforced how far transparency goes in building trust,\u201d said Hunter.<\/p>\n This approach, as Dominick Tomanelli<\/a>, CEO of Promobile Marketing<\/a>, told me, is all about making the right, ethical choices feel like second nature for your employees. Naturally, this isn\u2019t something that happens overnight. Like all habits, it takes time and practice to know straight away how to reflect your company\u2019s values consistently, even under time pressure.<\/p>\n \u201cAt Promobile Marketing, we started with a clear code of conduct, shaped with input from our team. This involvement gave everyone ownership over our values,\u201d Tomanelli said. He also underlines that \u2014 even with the best ethical guidelines in hand \u2014 you might be caught off guard in a new situation.<\/p>\n That\u2019s why the team at Promobile Marketing regularly meets to hold discussions about the ethical dilemmas they come across. \u201cThis allows us to learn from one another,\u201d he added.<\/p>\n This one probably won\u2019t come as a surprise. If you make ethics part of your values, then those who are part of the business will feel more obliged to follow them. Mark Hirsch<\/a>, Personal Injury Lawyer at Temple & Hirsch<\/a>, suggested starting with distinct, actionable values to guarantee that operations are founded on ethical principles.<\/p>\n \u201cIntegrity, transparency, and accountability are the guiding principles of all interactions at our firm, from managing team dynamics to resolving client cases. To guarantee impartiality in legal proceedings and prevent conflicts of interest, we implement rigorous compliance protocols,\u201d added Hirsch.<\/p>\n Walking away from an attractive deal for the sake of staying true to your commitments is, arguably, the biggest test for your business ethics. The leaders I spoke to repetitively told me that no amount of money is worth compromising the integrity and trust they\u2019ve built.<\/p>\n “Over our 20 years in business, we\u2019ve faced situations where honesty was at stake,\u201d admitted Jessica Munday<\/a>, CEO and founder at Trio Solutions<\/a>. \u201cOnce, we encountered a real estate developer whose practices raised red flags. Despite the potential revenue, we trusted our intuition and ended the partnership.\u201d<\/p>\n Munday told me that walking away from an unethical opportunity ultimately makes you feel relieved, as you know you\u2019ve made the right choice.<\/p>\n Ricardo Batista<\/a>, co-founder and CEO at FidForward<\/a>, agrees with this approach. He told me, \u201cNever bend your policy, even for paying customers \u2014 like Apple’s firm stance against government pressure.\u201d<\/p>\n He said that his company, which offers an employee feedback platform, recently faced pressure from one of its clients.<\/p>\n \u201cThey requested access to private feedback data from a problematic case, seeking to justify an employee’s dismissal,\u201d Batista said. \u201cWe firmly refused to break our privacy promise, even at the risk of losing the contract.\u201d<\/p>\n He explained to the customer that violating this policy would destroy the platform\u2019s credibility and prevent honest feedback from all future users \u2014 not just for theirs but also for other companies.<\/p>\n \u201cFortunately, the customer understood our position and respected our commitment to privacy,\u201d Batista added.<\/p>\n I\u2019m sure that, based on the previous tip, you can see that business ethics start right at the top. Naturally, not all decisions will take place with the involvement of department leaders or even the C-suite. Yet, the most lucrative opportunities on the table most probably will.<\/p>\n \u201cEthical operations truly start and end with leadership<\/a>, because we set the tone for everything that happens in our daily operations,\u201d said Elisa Montanari<\/a>, head of organic growth at Wrike<\/a>.<\/p>\n Montanari notes that companies have codes of conduct, and leaders need to model those behaviors \u2013 or even go beyond them. Your staff needs to see that your actions are fair and transparent and that you\u2019re accountable in every interaction. The actions of a leader flow down to every single employee.<\/p>\n Montanari also underlined that you need to be strong enough to admit that you\u2019ve made mistakes \u2014 ideally, as soon as possible. \u201cEven before taking the steps to correct them,\u201d she added.<\/p>\n This is an absolute-must have, as \u2014 in my experience \u2014 operating on the basis of a vague pricing plan can lead to irreversible damage.<\/p>\n In the mid-2000s, I was part of a team that reached out to the company\u2019s existing customers, offering them a free trial of a new tool. We presented the costs of a monthly plan but reassured them that the contract would not auto-renew after the free trial period had ended.<\/p>\n Unfortunately, that was not the case, and even we as the customer-facing team weren\u2019t aware of this fact. I don\u2019t have information on how many clients the company lost due to this situation. Yet, I remember how unhappy most of them were when they reached out to complain about their credit cards being charged.<\/p>\n On the flip side, if you can lay out each and every term and condition for your offer, you can quickly gain market trust. That\u2019s the case of Eyeglasses.com, as Mark Agnew<\/a>, the company\u2019s founder and CEO, explains.<\/p>\n \u201cIn my experience, strong ethics need to be a central part of a company’s culture. As the CEO of Eyeglasses.com<\/a>, I\u2018ve always prioritized transparency in our pricing, making sure customers understand what they\u2019re paying for. There’s no hiding or misleading \u2014 customers can access high-quality eyewear without being trapped in high-cost insurance plans,\u201d Agnew said.<\/p>\n He told me that the best example of how much transparency can play out in your favor is his company\u2019s NewVision Benefits Plan.<\/p>\n \u201cWe launched it to provide affordable and transparent vision benefits directly to corporations,\u201d Agnew said. \u201cThis ethical approach has not only differentiated us from our competitors but also enabled us to build long-term trust with our customers.\u201d<\/p>\n Your team needs to know what being ethical means to the business and how it impacts their jobs. This includes telling them what\u2019s deemed unethical.<\/p>\n Bob Schulte<\/a>, CEO at Bryt Software<\/a>, told me that they hold workshops with their engineering teams twice a year to ensure responsible innovation remains a cornerstone of their work.<\/p>\n \u201cDuring one session, an engineer raised concerns about how an update to Bryt\u2019s Document Management feature might impact user privacy. This sparked a meaningful discussion that ultimately led us to design a more transparent solution and utilize Azure\u2019s advanced tech stack,\u201d said Schulte.<\/p>\n Moments like these remind him why fostering open conversations is so important and that’s exactly what he recommends. The company is also looking to leverage AI tools that will guide ethical decision-making in real-time, helping them evaluate choices through the lens of their core values.<\/p>\n I\u2019ve mentioned earlier that it\u2019s important that transparency guides all business decisions, and this also applies to the supply chain. CellaBeauty\u2019s<\/a> operations are grounded in ethics.<\/p>\n The company\u2019s Director of Operations, Rachel Lynch<\/a>, said that \u201cone pivotal moment came when we partnered with a new raw material supplier. During an audit, we discovered gaps in their labor practices. Instead of terminating the partnership immediately, we worked collaboratively to help them implement fair labor standards, ensuring workers were paid and treated fairly.\u201d<\/p>\n Thanks to this approach, the company was able to uphold ethical commitment while fostering growth for the supplier.<\/p>\n \u201cThe team learned that ethics isn\u2019t just about policies and creating real-world impact. Transparency in sourcing, producing, and communicating has strengthened trust with our customers and internal team, reinforcing that doing the right thing always pays off,\u201d she added.<\/p>\n Arne Helgesen<\/a>, CTO at Sharecat<\/a>, shared with us a tip that he thinks is unconventional \u2014 to implement transparent data usage dashboards that allow employees and stakeholders to see how their data is being used and protected.<\/p>\n According to Helgesen, this not only promotes ethical operations but also creates trust within the organization and outside of it. As an example, Helgesen recalls consulting for a mid-sized engineering business. Rolling out AI technologies for operational efficiency raised data security and employee privacy issues.<\/p>\n \u201cTogether, we developed a dashboard that displayed real-time insights into how their data was being processed, anonymized, and stored. This transparency reassured employees and partners that their privacy was respected and eliminated rumors about unethical data practices,\u201d said Helgesen.<\/p>\n This resulted in a 35% increase in employee involvement in just six months and allowed the firm to avoid potential legal issues by cultivating an ethical and transparent culture.<\/p>\n\n
What are business <\/strong>ethics<\/strong>?<\/strong><\/h2>\n
Why are business ethics important?<\/strong><\/h2>\n
To Avoid Legal Consequences<\/h3>\n
To Build Customer Trust<\/h3>\n
To Improve Profit<\/h3>\n
To Attract and Retain the Best Talent<\/h3>\n
Principles of Business Ethics<\/h2>\n
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<\/p>\n1. Integrity<\/h3>\n
2. Fairness<\/h3>\n
3. Accountability<\/h3>\n
4. Respect for Stakeholders<\/h3>\n
5. Transparency<\/h3>\n
6. Compliance with Laws and Regulations<\/h3>\n
7. Sustainability<\/h3>\n
\n
8. Loyalty<\/h3>\n
9. Empathy<\/h3>\n
10. Commitment to Excellence<\/h3>\n
How to Build an Ethical Business<\/h2>\n
![\"how](\"http:\/\/nurseagence.com\/wp-content\/uploads\/2025\/03\/business-ethics-3-20250224-8830928.webp\" "\\"\\"")
<\/p>\nMake transparency your priority.<\/h3>\n
Embed \u201cdoing the \u2018right\u2019 thing\u201d in your culture.<\/h3>\n
Make ethics part of your values.<\/h3>\n
Stay true to your values.<\/h3>\n
Lead by example.<\/h3>\n
Ensure transparency in pricing.<\/h3>\n
Foster a conversation about ethics with your team.<\/h3>\n
Embed transparency into your supply chain.<\/h3>\n
Build and share data usage dashboards for your employees and stakeholders.<\/h3>\n
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