More consumers become aware of the importance of supporting an ethical business. These merchants refer to enterprises that abide by moral standards for the common good of the society, economy, and environment. And in this article, we’ll shed light on the ethical business decision examples you can use for your business.
What is an Ethical Business Decision?
Ethical business decision refers to the philosophy a company employs to present itself as an advocate of moral ethics. Its main objectives and key results doesn’t solely revolve around gaining profits, but it seeks to give back to its workers, customers, and community. Aside from presenting its product benefits to the consumers, it positions itself as socially responsible and environmental-friendly.
Businesses that practice ethical initiatives find success in marketing their brand and building consumers’ trust.
Why are Ethical Business Decisions Important?
Employing business ethics in operations says a lot about how the company runs the business. It doesn’t just manifest how the business visualizes itself as a brand, but also how it resolves ethical issues in a business context. Among its benefits for the business include:
Builds your brand reputation
It presents your business as more than just a money maker. When consumers highly believe in your ethical actions, they are more likely to support you for that.
Establishes consumer trust
Having the right ethics makes your business seem one step ahead of competitors. This is especially true when you treat consumers or employees with respect.
Boosts self-image
When you know you are doing something right, you feel good about it. With this in mind, you feel motivated to continue creating a business that promotes ethics.
Attracts highly-skilled workforce
Some employees are drawn to companies that have common interests as them. If they relate to your vision, you can score passionate talents who genuinely believe in your business. Thus, this top talent acquisition will help avoid employee turnover.
Appeals to shareholders
Showing ethics appeals to business shareholders. If you do it right, you can secure more financial support from them to scale up your business. This is because shareholders want to work with a brand that’s morally right and socially aware.
Making ethical business decisions is crucial for long-term success. The Notion app aids this by organizing tasks and projects, helping teams stay aligned and informed.
Ethical Business Decision Examples
Here are the ethical business decision examples to illustrate how it can effectively work on building your business:
1. Paying fair wages
Any business that pays its employees fairly attracts the best workers. The exploitation of laborers is so rampant that it became the norm in many industries. However, this flaw in the job market should not be encouraged.
Instead, you should do the right thing and invest more in incentivizing your employees. This way, you can motivate workers and minimize employee turnover.
 2. Committing to sustainability
Many businesses have since started to support the environment, economy, and society by employing sustainability efforts. These initiatives focus on saving the future generations’ needs by using up just enough available resources to meet the present’s needs.
Some sustainability projects include:
- Using recycled materials
- Using cardboard recycling bins
- Producing biodegradable products
- Creating cruelty-free products
- Minimizing plastic use
- Promoting sustainable food
- Saving on electricity consumption
- Writing/printing on both sides of papers
- Planting trees with the company
- Banning bottled water and cups in the workplace
3. Encouraging employee education
One of the most ethical ways to promote employee empowerment is by investing in their education. You see, when you incentivize them by enriching their skills and expertise, they become better at what they do. Similarly, it provides you better outputs since they become specialized and are motivated with the acquired expertise.Â
You can do this by rolling out weekly training or enrolling them in an online class that’s relevant to their niche. By doing this, you are investing in upskilling your employees and motivating them to better themselves. As a result, there will be less turnover rate.Â
4. Support animal welfare
Many companies are getting backlash for testing products on animals. This is especially true for cosmetics, pharmaceuticals, and clothing retailers that practice animal trials and cruelty. But as an ethical business, you should steer clear from those terrible animal practices.
One way to support animal welfare is being organic and resorting to faux yet sustainable materials for your products.
5. Donating a portion of your profits
Portion donations are prevalent in the business. Several big brands took the spotlight from making this effort. For instance, TOMS donates a pair of shoes to ÂÂÂa child for every pair sold.
This is an effective way to encourage sales while giving back to communities in need. People love the idea of helping in every possible way, and purchasing while giving back is one way to do it.
6. Having reasonable return and refund policies
When you are a retailer, it’s crucial to offer such flexible return and refund policies. This service helps you build a customer service-oriented brand that puts customers’ needs and concerns first. Having said that, you can attract more customers since you offer such flexible policies.Â
In addition, you can expect the word of mouth to work its wonders when customers are happy with your service. They can refer your product to personal connections, which can help you generate more sales.
7. Employing minorities
Hiring minorities such as women, LGBTQ members, disabled persons, and more is a great way to promote empowerment. This is because your business proves that quality work doesn’t know gender, race, or even physical abilities.Â
The group a person belongs to should not restrict him/her of opportunities. It doesn’t have any correlation to being a qualified employee. If the person displays the perfect skill set for the job, then there’s no reason not to hire them.
8. Respecting customer information
The majority of businesses collect customer information that must be carefully handled. These data may include the name, address, contact number, and payment information. All these are sensitive data that need utter security and protection.
Customers won’t trust you if you engage in unethical practices like sharing customer data. It’s not only disrespectful but also perilous since these data are part of their identity.
Recommended Courses for Making Business Decisions
Here are the best courses to help you make informed and ethical business decisions.
1. Decision Making Best Practices Of Fortune 500 Firms
Decision Making Best Practices Of Fortune 500 Firms is an essential course for current and aspiring leaders seeking to dramatically improve their decision-making skills. This course delves into the best practices used by Fortune 500 leaders to make quick, major, and strategic decisions while uncovering dangerous judgment errors known as cognitive biases.
What makes this course unique is its focus on practical, science-based techniques that have been proven to work in real-world scenarios. With case studies from companies like Aflac, IBM, and Wells Fargo, the course provides a clear, actionable plan to help you master decision-making skills and overcome cognitive biases that often lead to disastrous outcomes.
In my experience, the course's emphasis on behavioral science and real-world applications makes it incredibly valuable. It offers a comprehensive approach to decision-making, ensuring that you can apply these best practices to achieve your business and career goals with confidence.
Who is this course for?
This course is ideal for executives, managers, supervisors, intrapreneurs, and entrepreneurs who want to enhance their decision-making abilities and seize a competitive advantage. It's also beneficial for anyone looking to make better quick, major, and strategic decisions, even if the case studies may be less directly relevant to them.
Take this course2. Master Your Business Analysis Skills
Master Your Business Analysis Skills is an indispensable course for those aiming to excel in business analysis. It provides a comprehensive overview of essential skills and diverse roles, teaching you how to effectively leverage your expertise within various organizational functions while exploring career paths beyond problem diagnosis and solution recommendation.
What sets this course apart is its comprehensive approach to the field of business analysis. It not only equips you with fundamental skills but also provides insights into how these skills can be applied in different roles, highlighting potential career progression opportunities. The course's emphasis on theoretical concepts, supported by extensive reading materials, offers a thorough understanding of the subject.
The depth of knowledge provided is impressive, and it offers a solid foundation for anyone aspiring to advance in business analysis. Despite its theoretical nature, the content is well-structured and easy to follow, making it a valuable resource for learners at any stage.
Who is this course for?
This course is perfect for business professionals looking to expand their skillset, students considering a career in business analysis, and anyone interested in pursuing this versatile and valuable field. Prior experience is a plus but not required, making it accessible to a wide audience.
Take this course3. MBA Short Course On Strategy
MBA Short Course On Strategy offers a concise and insightful introduction to the basics of business strategy, designed to help learners understand its importance and application in achieving success. This 45-minute course covers key strategic concepts and frameworks, making complex ideas accessible to a broad audience.
What makes this course unique is its ability to demystify advanced strategic frameworks like Red Oceans, Blue Oceans, Value Curves, and Strategic Agility. With 15 focused lectures, it provides clear and straightforward explanations, ensuring learners grasp essential concepts quickly. The course is particularly valuable for those who aspire to think like senior executives.
Personally, I found this course to be exceptionally clear and practical. The structured approach and no-nonsense delivery make it easy to follow, and the coverage of widely-used strategic terms and concepts provides a solid foundation in business strategy.
Who is this course for?
This course is ideal for prospective MBA students, as well as students, employees, managers, and executives with an interest in business strategy. No prior knowledge is required, making it an excellent starting point for anyone looking to enhance their strategic thinking and understanding.
Take this courseFrequently Asked Questions
How can I make more ethical decisions?
Evaluate the potential impact on all stakeholders, seek diverse perspectives, and align with your company’s ethical guidelines.
What should I do if I face an ethical dilemma?
Consult your company’s code of ethics, discuss with a mentor or supervisor, and consider the long-term consequences of your decision.
Can profitability and ethics coexist?
Yes, ethical business practices can lead to sustainable profitability by building trust and loyalty among customers and employees.
How do ethical decisions impact employee morale?
Ethical decisions foster a positive work environment, leading to higher employee satisfaction, loyalty, and productivity.
What are common challenges in making ethical business decisions?
Common challenges include pressure to meet financial targets, conflicts of interest, and navigating complex regulations.
Key Takeaways
The examples provided serve as a springboard for integrating ethical considerations into your business strategy.
For those seeking to further explore these concepts, our online course library offers a comprehensive selection in business management, entrepreneurship, and leadership. These courses can equip you with the knowledge and skills necessary to navigate the complexities of modern business.
We offer an All Access Pass that grants unlimited access to our extensive library of over 4,000 courses. This subscription allows for a holistic learning experience, fostering personal and professional growth.
Editor's note: This post was originally published in March 2024. It has been updated for freshness and accuracy.
