By John Paschall, Servant Leader
Ethics – Is it Really That Big a Deal?
We roll into April here in Southeast Texas with our normal stretch of unsettled weather (one day this week the range of temperatures in Texas was 77 degrees – 108 in Laredo and 31 in Dalhart!) and a VERY busy time here at your BBB.
Our Second Annual Laws of Life Banquet was held on April 16, closely followed by our 16th Annual Torch Awards Banquet on May 7, celebrating 50 years of serving Southeast Texas as your BBB. I highlight these two events for you because they are very public examples of our core mission and vision.
Our mission at the BBB is “To be the Leader in Advancing Marketplace Trust” – in other words, to promote ethics in our marketplace. The Torch Awards Banquet is our effort to recognize businesses in our area for doing business right – with consistent ethical business practices. We deal with situations every day at the BBB that are the result of unethical business practices, thus we are so pleased to be able to take the night of May 7 to highlight and honor those businesses that champion ethics in their day-to-day dealings with the public and to honor 13 businesses (Our Charter Accredited Businesses) that have been doing this for over 50 years in conjunction with the BBB!
Our vision at the BBB is to “help develop the next generation of educated and ethical consumers and business leaders.” The Laws of Life essay contest is one way that were are attempting to achieve that vision. This program encourages junior high/middle school students to reflect and write about their “laws of life” or ideals by which they strive to live their life. The Banquet on April 16 honored students, teachers, and schools who are being recognized this year through the contest. Along with our In Pursuit of Ethics program for high school students, the Laws of Life helps to create our “future workforce” programming initiative called TOGGLE 2.0 (Teaching Our Generations Great Leadership Ethics). It is our way to contribute to a change in the culture of the marketplace in Southeast Texas.
We talk a great deal about ethics here at the BBB – how to do business right and how to treat your consumers right – running our business with ethics and integrity. But really, what IS the big deal about ethics – does it really matter and why does it matter?
Well, as you would guess, we believe it is INCREDIBLY important to you, to us, to Southeast Texas, and to the long-term success and viability of your business. Why is it that those businesses whose focus is on doing things right, taking care of their customers, and standing for ethics in the marketplace are those that have stood the test of time and have been contributing to the economy of Southeast Texas for 50, 60, even over 100 years in some cases?
I read an article just this week that talked, in part, about benefits from ethical leadership. I have included a link to the article.
http://www.businessballs.com/ethical_management_leadership.htm#examples_of_unethical_behaviors
In part, here is what they said. Ethical Leadership gives your business:
Competitive Advantage – Customers generally favor businesses that demonstrate responsibility and ethical practices. Failure to do so means lost market share, reduced revenue, and reduced profits.
Better Employee Recruiting and Retention – The best staff want to work for truly responsible and ethical employers. Failure to do this can cause good employees to leave, pushing up cost, and undermining performance and efficiency.
Investment – Investors don’t want to invest in organizations that lack integrity, not only because of the association, but because they know that eventually performance will decline.
Morale and Culture – Staff who work in an ethical, integrity-based organization are generally happier and more productive, less prone to stress, attrition and dissatisfaction. These employees generally take less time off, and need less managing.
Reputation – It takes years to build an organization’s reputation – and one scandal to destroy it. Ethical organizations are less prone to these scandals and usually know how to deal with problems when they occur, quickly and honestly. Consumers tend not to forgive as easily those organizations that fail and then fail again by not addressing the root cause of the problem.
Legacy – What is the legacy that you want your organization to have once you are gone – huge piles of profits and cash reserves or a great product/service at a fair price and an organization that has contributed to the betterment of the society and community in which it exists?
Not only is the ethical way the right way and the way to build a lasting legacy, it is without a doubt, the best way to build a better, long-lasting, and more profitable business. And that, my colleagues, benefits ALL of Southeast Texas!
Let us know how we can help you to continue building your better business. See you at the Torch Awards Banquet on May 7 at the Civic Center!
