Ethical Business helps companies grow and consolidate. It is the key element for standing out in the market and generating value.
Today I want to address a topic that is very close to my heart. Ethical Business or Spiritual Business.
The starting point is an extremely interesting article I read this morning in Business Insider entitled:
Corporate America sends Chicago Boys to the attic: 181 companies sign document for ‘Better Capitalism’
I quote two paragraphs that I think are basic:
“Are the big U.S. groups turning over a new leaf? It would seem so. The priority of corporations and its CEOs is not or should no longer be just the shareholders and the value of the shares of the companies they manage: companies in their decisions must also consider the welfare of their employees, and not just the pursuit of maximum profits..”
“Shareholders,” is the new motto, “should be considered on a par with workers, customers, suppliers and the communities in which you operate (the stakeholders).”
Even American corporations are beginning to change their minds about the distribution of value produced by companies.
Sharing the well-being produced with those who helped you produce it, I think, is a key point.
Although it may seem like just a play on words, to make this important turnaround, we need to eliminate from our heads, the term employees and replace it with collaborators.
Business ethics: words have very specific weights and values
For this reason, I conducted a search on the Treccani website.
“-dependent [from the part. pres. of the verb depend]. – Second element of modernly formed nominal compounds, having the sign. of “(person) who depends on, who cannot physically or psychically do without” what is designated by the first element of the compound: teledependent, addicted.”
To be dependent on the company that employs you is to put your life in the hands of that company.
It is a mental issue, first of all. Your future depends on whether you can keep your job.
On the surface, this might seem to be a strength for the entrepreneur.
If you depend on me, you will give your best in the company. So you will be willing to do anything as long as I don’t fire you.
And indeed that is what happens in many realities.
If the company is based on this model it is doomed to fail.
For the simple reason that the employee is more focused on pleasing the value employer than on creating value for the company itself.
How many times have you been discredited by a colleague who wanted to make himself look good in the eyes of the boss?
Or keep some errors or shortcomings hidden so as not to “risk the position”?
What determines this? That you will still be more focused on defending your position than on engaging in doing your best work.
There is a second aspect, which I have heard dozens of times from friends or people I met at the bar.
“But what is the point of me working my ass off in the company. Whether I do a lot or a little my pay is still the same.”
This attitude is also devastating to the company.
It always comes from the same root: “dependent.”
Entrepreneurs must see their employees as collaborators
Let’s have the precious Treccani help us again.
collaboratóre s. m. (f. -trice) [der. of collaborate]. – One who works together with others for the production of something, or collaborates in the realization, development, or success of an activity, initiative
Those who work together with others to produce something.
Capers this means not depending on the company, but working with colleagues to produce value.
It means:
- Spend time to find new ideas and new solutions to improve the product or service made by the company;
- Give maximum support to customers if I am part of customer care;
- Be kind and helpful if I am a waiter or a receptionist.
A person does not decide to stay in the company for the money. But because he feels part of something. Because he feels useful.
If a person works for you, exclusively for pay, it means that at the first opportunity he will change for better pay.
If a person works with you, on the development of an entrepreneurial project, he or she will not abandon you, even in the difficult times of the company.
For the simple reason that you feel part of that company. In this regard, I can bring my personal experience, where my employees have stood by me, helped me, even in difficult times.
Clearly “being an active part of the company” cannot be a one-way street but must be win-win.
That is, both actors (entrepreneur and collaborator) must win.
This can materialize in so many ways:
- Rewards and incentives, not only related to productivity, but especially to the provision of new ideas and solutions that improve one of the many aspects of the production cycle. For example, people working on the assembly line will be stimulated to find new solutions. Not only in terms of speed of execution, but also in terms of the quality of the final product.
- Distribution among employees of part of company profits.
- Implementation of corporate welfare programs that help their employees. For example, some companies take out policies that cover extra expenses for their employees’ doctor, eye doctor, dentist, etc. Others have implemented gymnasium or daycare within the company or in the immediate vicinity, etc..
Ethical behavior does not stop with employees alone but goes beyond that.
Business Ethics also affects its suppliers
In negotiations, it makes no sense to reduce the cost of supply to the bone. It is okay to negotiate to get a minimum benefit.
Taking advantage of a struggling supplier to get the maximum discount, means, putting them even more in trouble.
What can happen? That that supplier will work poorly, so it will still be the contracting company that will be the one to suffer.
If a supplier is in trouble and we give him a hand, he will be forever grateful. And when we are in trouble, he will still be willing to work for us, perhaps shifting payments so as not to cause us trouble.
Business Ethics and Entrepreneurial Vision
A winning Company is made up of people who believe in the Entrepreneurial Vision
What makes 𝐮𝐧𝐢𝐜𝐚 and 𝐬𝐩𝐞𝐜𝐢𝐚𝐥𝐞 a Company? The 𝐩𝐞𝐫𝐬𝐨𝐧𝐞: Internal/external collaborators, Suppliers, Partners…
Financial and human capital are both crucial.
𝐒𝐞𝐧𝐳𝐚 𝐢𝐥 𝐜𝐚𝐩𝐢𝐭𝐚𝐥𝐞 𝐮𝐦𝐚𝐧𝐨, 𝐥𝐚 𝐟𝐢𝐧𝐚𝐧𝐳𝐚 𝐬𝐞𝐫𝐯𝐞 𝐚 𝐛𝐞𝐧 𝐩𝐨𝐜𝐨.
It is inferred that 𝐥𝐚 𝐩𝐞𝐫𝐬𝐨𝐧𝐚 is 𝐥’𝐞𝐥𝐞𝐦𝐞𝐧𝐭𝐨 𝐯𝐢𝐧𝐜𝐞𝐧𝐭𝐞 𝐝𝐢 𝐮𝐧’𝐀𝐳𝐢𝐞𝐧𝐝𝐚.
The basic condition is that you feel you are an ARTIFICIAL of business success.
I would very much appreciate your opinion on this: whether you agree with what you are about to read, or whether you have a totally different view.
Let’s start with some basic points.
We sell performance not products
Even when our Companies sell lawnmowers, hair dryers, window frames, etc., we do not sell products, but we sell performance:
- Lawn mower: we expect it to work at its best and cut the grass in our garden perfectly;
- Hair dryer: we certainly don’t want it to burn our hair at the first “blow-dry,” we want it silky, soft, shiny;
- Window frames: they should not only close a space. They must insulate against heat and cold and keep out noise.
Every time we make a sale, we make a promise
When a customer buys one of our products or services, they are placing their trust in our Company.
“By purchasing this cream, you will look 10 years younger.”
The selling stage is simply fantastic.
On the one hand the one who sells.
Willing to say anything.
On the other, the buyer, trying to figure out where the catch is.
I am by no means a sales expert; I deal with other things in life.
Over the years I have come to have a very clear idea.
I have one name and one face to spend on the Market.
My credibility is the only currency I can spend.
Suoi be a winning Company? The promise must be kept
The Company, by making a sale, puts an extremely important factor at stake: its credibility.
It is therefore important that, the performance we promise in the sales phase, is actually delivered.
Have you ever been enticed by the beautiful photograph on the packaging of a snack and then discovered that, in reality, it is totally different?
Perhaps, at least once, you have happened to book a vacation at a beautiful hotel, only to discover that the rooms are dirty and totally different from those on their website.
Or you just picked up the car of your dreams, and it stops after traveling 500 meters from the dealership.
In these examples, something did not work.
In the first case, the Marketing department got “carried away” 🙂 = you won’t buy those snacks anymore.
If we analyze the second case… the person in charge of cleaning did not do their job carefully. = You will not go to that hotel again.
In the third case, the quality control manager forgot some procedure. = You will talk badly about that brand and that specific car with your acquaintances.
These 3 examples serve to highlight the fact that, the success of a company, depends on all the people who contribute to the realization of its products and services.
Everyone contributes to keeping the famous promise: internal staff, external staff, suppliers, partners etc.
Ethics and Business: Community
Every company produces, works, builds, creates within a community. Even companies that provide purely online services are part of a community.
It is therefore crucial to give back to the community some of what we have achieved.
From a marketing and communication perspective, these kinds of projects are called CSR or Corporate Social Responsibility and have to do with corporate social responsibility.
Projects carried out by the company to create value and support for the community of which it is a part.
Support for local associations that do volunteer work. Creation of green or play areas for children. Support for local events.. etc.
The opportunities are a thousand.
Ethics in Business: Conclusions
I believe that if we want to make successful companies, it is the responsibility of Management (Ownership, CEO, General Manager etc.) to make all those who are part of the Company participate and share responsibility. Of course, words must turn into concrete deeds.
If a person is in the state of mind of the EMPLOYEE he will use terms such as LEADER and FATHER. Inevitably he will think:
- they make money on my skin
- They pay me a pittance and drive around in nice cars
- for what they pay me, even if I make a mistake in recording an invoice and don’t discharge the VAT who cares, meanwhile with all the money they have
- I forgot to check the package before shipping, if it comes back they will pay another shipping….
- Like hell I’m going to stay five minutes past working hours.
If a person has these attitudes toward the Company, it is the responsibility of MANAGEMENT to change the state in which that person lives, making him or her the architect of the Company’s SUCCESS.
At that point he will feel like a COLLABORATOR and the LEADER will become the REFEREE, the FATHER the one who is responsible for making the Company travel at full speed to create prosperity for all.
The thought will magically transform into:
- What can I do to optimize timing at work?
- How can I improve production processes?
- What contribution can I make to the Company so that everything runs smoothly?
- I’m not going home until I finish this work
Some useful questions
- Do I want to be Chief or Referent?
- Do I want to depend on the Company, or contribute to its success?
- Am I aware that if I do not do my job to the best of my ability, the Company may have problems and tomorrow, as a result, my “safe place” may not be so safe anymore?
I hope this brief reflection has provided you with some useful insights.
Apart from all the organizational and business aspects there is an even bigger reason to change our approach to Business.
The Buddhist Law of Cause and Effect “You reap what you sow. What we put into the universe is what comes back to us.”
Have a great day
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