How Entrepreneurs Can Achieve a Competitive Edge with Ethical Culture and Well-Crafted Policies

The courage that prompts you to do the right thing no matter how uncomfortable it might be in the face of adversity, is the principal driving force within each human being.

The effective ethics in you will help create a good ethical culture wherever you are, at work, and in society as a whole.

Understanding Ethical Culture

Ethical Culture, in simple words, is the principles, mindset, and values that are held and followed corporately at a firm or a company. Ethical Culture of a company is more about the reputation of the company than a set of rules to follow.

Ethical Culture is achieved corporately through well-devised policies and mindset development of every individual working in the company.

A young man was selected as the Business Manager at his office. He was fairly young at age compared to his other colleagues, but he was a senior to most of his colleagues, job-wise. He was put on a task to review the monthly performance of the company as a team.

Before debriefing, he had to sit down to hear a lot of the complaints the colleagues had towards each other. Bombarded with complaints from every angle, the young Business Manager was indeed a little intimidated to address the monthly debrief because he did not want to seem like he was siding any sides.

At this moment, it was his genuine Ethical Culture set within him that allowed him to address the company as he should and safeguard the reputation of the company in front of the company's investors and higher officials.

Your personal ethical Culture in actions can also safeguard the business reputation, just like how the ethical Culture of a young Business Manager safeguarded the reputation of the whole company in front of the officials and investors.

Ethical Culture and Reputation Enhancement in Business

A good ethical culture and business performance are in close connection with each other. The research found that companies with good ethical culture are said to outperform almost 40% in every aspect of business.

World-class companies like Google also faced a huge fine imposed on Google by the EU in 2019 as a result of antitrust issues from the consumer’s end towards the company.

Equifax, another renowned company faced a lack of business ethics when it was reported that over 148 million data of their consumers were stolen due to the ignorance of the company to update their security system. The whole mishap could have been avoided had Equifax as a company practiced Ethical culture in their business.

The celebration and practice of good business ethics whether it be in big companies or small companies is vital to maintaining a good reputation of the company as well as offering valuable experience for the consumers in return for their service to the company.

All around the world, regardless of age await a good relaxed evening to sit and binge-watch their favorite TV show or movies, and what better way to fulfill that desire than to Netflix and chill right?

Netflix is winning hearts not just for the valuable service it proves to offer to its consumers but the highly valued work culture of the company is laudable and exemplary. Employing over 12,000 employees with offices across 10 countries, at Netflix, every idea and suggestion is valued and taken into action.

According to GrooveHR, it was reported that 70% of Netflix employees recommend working for the company.

No wonder in the year 2019, it was listed 4th on Forbes Top Regarded Company.

Speaking of good ethical culture for good reputation and consumer’s return of the company.

Policy implantation is the key therefore to attain that, well-designed policies are needed.

Let us discuss some well-designed policies to enhance a good ethical culture in the workplace.

1. Learning to value the values is the key to any successful outcome. You may know the value theoretically but if you do not practice what you know then it is the same as not having any values at all.

2. The leaders and the HR of the company should hold themselves accountable and work with the juniors with integrity. Leading by example is the best way to set the standards of ethics in the workplace.

3. Honoring the suggestions of anyone working in the company is a well-designed policy to enhance a good working environment in the long run.

4. Keeping and maintaining suggestion and question boxes will have a good and positive impact on enhancing a good ethical work culture.

5. Welcoming innovative ideas and suggestions by being inclusive of everyone working at the company will have a positive impact on the growth and development of the employees and will lead to a good reputation for the company.

6. Open conversation is also a major part of well-designed policy to enhance a good ethical work culture.

7. The HR also plays a major role in maintaining a good reputation of the company as the HR hires the employees. Hiring quality and substantial individuals is vital.

8. The goal of any business regardless of the size has certain goals and expectations to achieve.

Therefore, ethical values are needed and the above-mentioned tips for well-designed policies need to be followed and practiced by every individual in the company.

A business needs to be built up with people who can be celebrated for their accountability and their policy compliance.

Supporting an ethical culture of leadership in the business

According to Forbes magazine, a survey report supporting ethical culture in the company’s leadership was done with Ethisphere.

Ethisphere is known globally for the promotion of effective, ethical Culture in workplaces through their precise and thorough research and studies.

Erica Salmon Byrne, the CEO of Ethisphere, talks about the new survey report, the Ethical Culture Insights Report 2023. In this report, you will see the findings and reports collected from millions of employees around the world, from 2016 to September 2022.

She states that, in the world of business, the need for accountability and transparency are in demand and requested by the company’s or firm’s investors, employees, and consumers.

Therefore, since its establishment in 2007, ETHISPHERE has tirelessly promoted and celebrated businesses that are working to bring a good ethical environment and accountable employees to bring goodness to the society they are a part of.

An excellent ethical culture offered in the company is the key that will sustain the company in the long run. There will be an attraction for many more better investors and an increase in consumer rates, too.

Ethical Codes

For any successful result, you need codes and ways to make it. An ethical code is a set of principles, values, and ways to help professionals conduct themselves with integrity and promote trust and transparency in the company.

There are no fixed codes, but the best way to promote a successful ethical culture is from the top. The hierarchy in the company where the leaders practice ethical culture will indeed transcend to the other members working under them. Leading by being an exemplary pillar.

Ethical codes are like employee handbooks acting as a good guideline in their work journey.

Ethical Decision making

To make an ethical decision is a very important task. Often, knowing right from wrong is easy, so to decide on making ethical decisions may look like it is easy, but making ethical decisions is easier said than done.

You need to be able to make decisions in alignment with the code of ethics through thorough research, and this can be attained by following some well-planned policies or models.

There are varying opinions and answers as to which policy or model is the best guideline for making ethical decisions. However, a well-planned model called the PLUS model is an excellent model to go by.

“PLUS” model stands for P- Policies and Procedures, L-Legal, U-Universal, S-Self.

So basically, the PLUS model is a guideline to whether your decision is in alignment with the company’s policies.

Whether it is legally violating laws or not. And if the decision you are making is meeting the company’s values as well as your personal core values.

In this manner, the PLUS model will help you make a good ethical decision by allowing you to consider all those necessary questions as a guideline while trying to come up with a good decision for all.

Regardless of how big or small the business is, it is built upon set ethical values and reliable staff will help build a good ethical culture in the workplace leading to a good reputation for the business.

Making and coming up with wise and well-devised policies and complying with the policy is a vital role of every person working in the company for good business returns.

To enhance trust and transparency in the workplace needs corporate ethical values and culture.

Final Thoughts

So, as discussed in this article the combined nature of what and how to achieve a good ethical culture.

Let us spread the word and make every possible effort to bring business ethical values and behavior to create a good ethical work environment.

Together, let us make awesome ethical decision making wherever we are.

Bill Achola, an experienced HR consultant, is dedicated to assisting small businesses and startups in attaining sustainable growth through his insightful blog on HR Loom. Connect with Bill Achola on LinkedIn for further updates and insights.