What is business ethics and why is it important? It's all about your brand reputation and opportunities to grow your business profits. For newer entrepreneurs, here's how to run an ethical business you can be proud of...
Ethical Business Practices For Aspiring Business Leaders
Running a business comes with challenge. Although when you start out, it sounds like a dream come true, as a business owner in your first few years you will be run off your feet with:
- Responsibilities
- Key decisions
- Financial worry
That said, many business owners successfully get their company off the ground and find a lifestyles suits them well. Being your own boss and making your ideas come to life is an incredible experience.
If you are a business owner or are looking to start your own company soon, this article will help you with insight and advice for running an ethical business.
What is ethical business?
That definition comes with many parts, and depends entirely on the types of goods or services you sell. Having a good code of ethics can vary including:
- The way you treat your employees
- The honesty of your financial records
- The quality of your products
One thing is certain: You want to be known for running an ethical business.
Don't Bite Off More Than You Can Chew
If you attempt to supply more than you can afford, you will end up sourcing unethically produced products which are damaging to both humans and the planet.
For example, if you have an affordable clothing company, you would probably source many different fabrics and pieces at a low price. However, trying to accomplish more than can be reasonably done, you could wind up placing in a position where you’re sourcing your clothing from unsafe and unethically run factories overseas.
This is not only morally wrong, but it also can damage your business’ reputation, similarly to the recent scandal involving BooHoo that hit the media.
Instead, start small. Offer a few pieces of high quality that you can afford to ethically source, create, and offer to your ideal customers.
Importing From Overseas Can Qualify As Ethical Business
Keeping your production close to home allows you to be one completely sure that your products are being ethically sourced. Additionally, that all those involved are treated and paid fairly. However, through the appropriate channels, overseas importation can help creators and designers in other countries thrive while keeping your business booming at the same time.
If you are curious about how to import from China while keeping your business ethical, the answer is simply to research and take advice from experts.
People Over Profit
It's simple: Every business owner wants to make a profit. However, treating people badly or paying staff unfairly while pursuing extra profit is the best way to keep your business from thriving. Doing so will be detrimental to those who work with you, creating a cycle of negativity and making them feel exhausted and fed up.
If you really want to run an ethical business, you must place humans at the center of your practice, creating a positive, transparent working environment that is bound to succeed. People over profit is an essential mantra which all ethical businesses should be following.
