The ethical question is of great relevance for every individual and extends to the business environment. In every decision that is made, some ethics will be involved. Be it negotiations with suppliers or the union, hiring or firing employees, assigning responsibilities or launching a promotion, ethics are always present.
The acts of the companies and the individuals that are part of them, have a positive or negative impact on other companies, other individuals or other processes
Currently, when there are more organizations that fight for transparency and with the internet as a tool for democratization and social mobilization, companies have as one of their foundations corporate ethics, Quirilio Matos well quotes Rinnov Kan, «Without solid values we are flirting with the disaster. With solid values, we can face international markets.
But without a doubt, there are those who put financial results above ethics and values, these people do not realize that corporate ethics can be a source of competitive advantages, since through it customers and staff can be attracted top notch.
Through ethics, corrupt practices that destroy value and damage the economy and society can be ended, if we weigh more the organizational culture, with common values (more than codes or rules) that serve as a path for the individuals that make up organizations, we could give more ethical components to a company. If we base ourselves on the fact that human capital is one of the greatest business assets, if not the greatest, and we become aware that these people are worth by themselves, that they must be respected and that they cannot be treated as a means but as a Finally, we will have taken the first step to ethically establish the institutions.
An organization that lives by the five fundamental values: equality, freedom, dialogue, respect and solidarity will be better prepared for the future.
Business Ethics in Numbers: According to the Ethics & Compliance Officer Association (ECOA), companies on the Fortune 500 list have codes of conduct.
We are living in times of globalization that have made organizations flatter, more decentralized and with more autonomous employees and with greater decision-making power, for this reason it is necessary that relationships not only within companies but between companies and other organizations, are based on the five values mentioned above, which will generate better behavior patterns and will generate value.
The components of an ethical company
Although they can be innumerable, the following would give rise to the foundations of an organizational ethics:
- Live in accordance with the five fundamental values An organizational culture with common values for its members Strive to achieve the satisfaction of all the agents involved in the company: shareholders, managers, employees, suppliers and customers Assume social responsibility for their actions. The moral contract between the company and its members and associates outweighs the mere legal contract.
When these basic components are incorporated, greater economic value is generated, since relationships, not only labor, but between supplier and company, customer and company, etc., will improve and the time and resources invested in improving the inefficiencies that were present in these relationships may be invested in those aspects that truly create value. Ethics often improve business operations in several ways:
- It reduces the conflicts of the members that form it.It improves the external image of itself.It is an essential component of the concept of “total quality”, so important today.
Fundamental values: Equality, Respect, Freedom, Dialogue and Solidarity
It should be noted that ethical business behavior is not a panacea for all problems, nor does it lead one hundred percent to growth and prosperity, but make no mistake, NOT ethical behavior either and it can cause problems, both internally and externally.
Through the following video course on ethics in organizations (7 videos, 1 hour and 10 minutes), given by Professor Manuel Guillén, you will be able to learn more about how this topic affects excellence, quality, and decision-making and in other key aspects for business development.
