Operating a business with a moral compass in this day in age often raises arguments about the violation of fiduciary responsibilities to the company’s sole purpose of maximizing profits and efficiency. Shareholders tend to leverage circumstances in order pressure executives to make amoral business decisions, industry competitors target social concerns in order to dilute market share in their favor, seasoned employees use office politics to tip scales. So how can business with a moral compass can operate and still remain profitable?
Institutionalizing Business Morality as a Formal Discipline
We sometimes believe that there are fundamental pillars instilled into our human society structure or at least a pattern for ongoing change in dramatic social events that occur through the generations. When crisis arise around world such as the riots in London and Stockholm, the financial crisis of 2008, or ongoing institutionalized racism worldwide — we often try to understand or rationalize them as temporary deviations from the norm. These are ontological assumptions embedded through common core education shape our ability to understand the nature of social change requirements for business with moral compasses.
Prior to the major social upheavals during the 1960s, business ethics, social responsibility, or cause/effect weren’t major considerations in the business world. During the 1970s, ethics took strides and began to be taught in business schools. A 1982 survey by Hoffman and Moore exhibited that of “655 schools that responded, 317 said that a business ethics course was being offered.”
Good Personal Ethics Should Define Business Morality
Business ethics should be extrapolated from the golden rule — “treat others the way you want to be treated yourself.” Contrary to ongoing practices, simply because money is involved doesn’t mean that a company should ignore fundamental moral business practices. Entrepreneurs, brands, and shareholders often forget that we are all consumers, we all know and understand what it’s like to deal with businesses on both sides. We’ve come to understand the value the major differences in the two ethical standards. Basics tenet is that all business adhere to some level of good intent in making sure that both parties (consumers & company) be afforded respect. I believe a running a profitable moral business is feasible as long as an ethical money-making business plan is devise in conjunction and adhered to.
Benefits Of Running A Running a Business With a Moral Compass
With social media essentially shaping a company’s reputation, any business that plots its course with a moral compass will enhance its own reputation. Doing this enables the business to build a loyal customer base solely on their good intentions methodology thereby increasing gross sales and profitability. A moral business increases the allure of the company to prospective employees, enhancing the talent of the recruitment pool. Ethical business standards also reduce employee turnover rates and cuts human resources costs. Vendors and potential investors will take note and your business can prosper from the decision to adhere to running a business with a moral compass.