There are a number of ideas about what business ethics is or is it simply what anyone thinks is right or wrong.  Essentially, business ethics seeks the Truth.  The Truth can and should be viewed on a level as simple as $5 plus $5 equals $10 initially.

As entrepreneurs we can consider ethics relating to our legal requirements for the most part.  This may seem a little strange, but there are always businesses who call our accounting consulting firm, in shock, that after 5 years of operation they are contacted by Canada Revenue Agency (CRA) about taxes.  Who knew that businesses paid taxes?  Wow, what a surprise!  This may appear strange, but this happens often.

Do you know the internationally recognized standards for small business?  What is the definition of a small business?  Most businesses have no idea whether they are a small business or not.  The Association of Chartered Certified Accountants (www.accaglobal.com) works professional organizations, such as Certified General Accountants Association of Canada (www.cga-canada.org) to ascertain specific standards.  For example, many “small” businesses may actually be micro businesses.  If your business has annual revenue that is less than $3,000,000 it is really a micro-business. 

Having a Chief Financial Officer (CFO) is a basic ethical requirement for any business.  It is not necessary to have a full-time executive in this position.  It is imperative to know how healthy a business is.  This is an aspect of ethics since it is easy to fall into unethical practices if the business is in poor health.  We can try to justify robbing staff or employers if we feel that we are underpaid.  It is a matter of perspective.  The CFO can advise us of the reality of our financial position.  Then you will know if your business is small or not.

Being ethical is fairly easy really.  Here are a couple of simple ideas for your consideration.

Always tell the Truth.  The adage, “let your yes be yes and your no, no” is quite appropriate.  When customers or clients can trust us absolutely, then they can trust us.  If we use this adage with our staff members they will know that this is something that we want.  This will be accepted by everyone inside and outside our enterprise.

The Russians have a famous motto that says: “Profit is above all, but honour is above profit.”  While profitability is essential, it is imperative to have an ethical business.  If we have no honour, we will not be trusted in the end and if we are not trusted there will be no profitability. 

It is also imperative that we remember that our goal as entrepreneurs is to create wealth through employment opportunities.  This is something that we often forget.  Just because someone starts a business doesn’t necessarily mean that they are entrepreneurs.  Without the component of creating wealth, a business may not be ethical.

Let us now consider the ideas of ethical categories. 

What are ethical categories?

There are numerous ethical categories that are designed by many philosophers and faith groups.  One philosophically-based ethical category is Utilitarian ethics.  One faith group based ethical category is Islamic ethics.  For most ethical categories there are no direct statements directly related to entrepreneurs or our businesses.

In researching the various ethical categories, I found only one ethical category that had something to say about entrepreneurs and business directly.  This was a scientifically-based ethical category.  This is the Theanthropic Ethical category of which I am chief advocate.  As an entrepreneur I recognized the practicality of understanding the truth in this ethical category.

Is your business ethical?      

Most of you will just laugh at this question.

“Of course, we are,” you will answer.  But what is the basis for your response?

If your answer is that you are using your own subjective criteria, based on your values, then the subjectivity of your approach could negate your intent to be ethical.

You would not be alone in that.  In my professional experience, I have met many unethical businesses and charities (yes, charities) that have failed to uphold an ethical position.  This is primarily because most people assess ethics subjectively.

This is why as an entrepreneur; I have chosen to pursue the profession of ethicist.

After all, as entrepreneurs we must be truthful in order to be successful. We all know this!

I’m here to be of assistance.  If you have questions, contact CanadaOne for free consultation. I’m one of the experts available to assist you in building your business.