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cO m m E n ta r y
SMAll BuSINESS EThICS
The More Things
Change, The More
They stay The same
The world of small business is constantly evolving.
Technology has changed everything, turning local shop
owners and service providers into global merchants,
and a new focus on social responsibility means that if you own
a business it is not enough to sell a product and make a profit.
These days you need to do so in a way that improves – or at
the very least does no harm to – the world around you.
With these changes, ethics have come to the forefront of small
business discourse in 2012. Integrity, honesty, empathy, trust
and transparency were key traits for operating a business in the
past, but in the new world of tech toys, climate change, and the
fight for fair wages, do these ideals still hold up? The answer
is yes, but many small business owners miss opportunities
to engage these core principles in the face of rapid change.
With this in mind, business owners can address three focused
areas that pose ethical challenges in today’s world:
• Social responsibility
• Building a culture of service
• Sourcing of ethical products
Social Responsibility
Excellence in business used to be defined by profit. These days
success is measured by profit as well as quality of life for the
business owners and staff, positive impact on the community,
and positive impact on the environment. Any business that
neglects these areas does so at their own peril, as buyers have
a higher level of awareness than they have ever had in regards
to social issues.
Becoming socially aware as a company is a simple process.
Find a local cause to support, one that is in alignment with your
company’s mission. Evaluate your products and processes to
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ensure that they are ethically compatible with
your values; take a honest look at how you
treat your staff, your customers, and your
stakeholders – are you doing all you can to
promote growth, development, and socially
responsible values? If not, you’re missing an
opportunity to make a positive impact while
avoiding important ethical issues.
A Culture of Service
The need to treat customers well has always
been imperative for entrepreneurs. This is
hardly new, but with online sales and an
increased distance from the customer, it’s
easy for business owners to forget about
the need for transparency and courtesy in
service delivery.
Some might ask, “Why should I bother to
go out of my way for a customer when I’ll
never see them face-to-face?” There are a
number of answers to this question, not the
least of which is that it is the right thing to do;
people deserve to be respected and treated
well. It is also critical to recognize that the
internet increases competition dramatically.
Neglect your customers and someone else
will happily take care of them.
Your ethical responsibility as a business
owner to provide good service does not
change just because your customer might
be based in another region. In fact, in the
online world, it is even more important
to step up and truly “wow” your clients –
perhaps stories of your exceptional service
will go viral and bring you a flood of sales!
This culture of service extends beyond the
customer to staff, partners, and all interested
stakeholders. Treat everyone in your sphere
of influence well and you will reap the
rewards through increased referrals, loyal
staff, positive brand imaging, and a clear
conscience.
Sourcing of Ethical Products
With every great deal comes the potential for
an ethical dilemma. These days it is possible
to source products and services from all
over the world with nothing more than a
laptop. In pursuit of the cheapest product,
however, how do you know if that product
cO m m E n ta r y
meets the ethical standards of your business
and your customers? Asking a few simple
questions of your suppliers can give you all
the information you need to follow your own
ethical guidelines and please your buyers.
If you sell a product, find out who makes
it and how it is made. Your customers
expect you to be an expert in your field of
expertise, so do not be afraid to dig deep
and understand where your products come
from. If they are made in a country where
workers are exploited, or if it’s made from
materials you disapprove of, find another
supplier.
If you sell a service, look at the materials
you use in the delivery of that service and
evaluate if they meet your standards.
For example, printing companies can use
environmentally friendly materials, and a
taxi service can carry only hybrid or electric
automobiles. Just because your business
might be service based, it does not mean
you cannot use service providers who are in
alignment with your ethical values.
There is no question that the world moves at
a remarkable pace. As a business owner, it
is important to recognize that no matter how
much things change, the pillars of ethical
business ownership stay the same. Integrity,
honesty, empathy, transparency, and trust
matter as much now as they ever did. If you
apply these traits to your online interactions,
identify ways to build a socially responsible
business, and focus on suppliers who can
deliver fair trade products, it means that you
will be serving your customers, staff, and
suppliers well while maintaining a strong
ethical foundation for your business.
Paul de Burger
Associate Consultant
d’oz International
d’oz International
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