Maria started her delivery business a year ago and has been doing very well. About a month ago, she was asked by her best friend to make an urgent delivery to someone. They agreed that the delivery will take place the following day. Later that day Maria got a call from a large company. This company wanted to contract her for the next two weeks. The money was good and Maria was very excited. But what about the urgent delivery to her best friend? She could not do both deliveries. She had already given her word to her friend that she will do the job the following day.

Clearly, the best business decision would be to take on the two week contract. But what about the ethical decision? If her business did poorly or Mary couldn’t provide enough support, the business would suffer. As a result, her family would suffer. Money was already tight, what with two boys in school. And yet she knew her best friend depended on her delivery the next day.

Obviously, Maria had a problem – an ethical problem. Should she do the delivery to her friend (to whom she’d already given her word) or should she take the two week contract? Questions like these touch on our deepest values. Depending on who you would ask, you would get strong arguments for both decisions. This is what we mean when we talk about “grey area”. So what is the answer?

This story illustrates the question of ethics. Business ethics are a hot topic these days. With everything from fraud to employee theft on the rise, it is no wonder that businesses are beginning to focus on the impact of ethical leadership. But along with this new focus comes a lot of “grey area”. Many times, managers are forced to decide on issues where there are arguments on both sides – a problem that makes ethical decision-making very difficult.

There are four questions you should ask yourself whenever you are faced with an ethical dilemma.

• Is it legal? In other words, will you be violating any criminal laws, civil laws or company policies by engaging in this activity?
• Is it balanced? Is it fair to all parties concerned both in the short-term as well as the long-term? Is this a win-win situation for those directly as well as indirectly involved?
• Is it right / fair? Most of us know the difference between right and wrong, but when push comes to shove, how does this decision make you feel about yourself? Are you proud of yourself for making this decision? Would you like others to know you made the decision you did?
• Do I mind others knowing what I have decided? (Transparency) If you are shy about doing something and would not like others to know about it, it is probably unethical.

In most of the cases, when dealing with “grey decisions”, just one of these questions is not enough. But by taking the time to reflect on all four, you will often find that the answer becomes very clear.

Business ethics should address:

Honesty

• Not to lie to anyone.
• To be a person of your word – do what you say you will do.
• Not to steal anything, however small.
• Carry on with the job, even when your supervisor or manager is not around.
• You are loyal to your employer, co-workers, friends and family.
• You are trying to set a good example to others
• You treat others as you would like them to treat you.
• Not to call in sick if you are not.

Justice

• To do the right thing
• To treat all people the same – with respect
• To allow everyone to tell their side of the story
• “Bad mouth” the company or management to co-workers?
• To admit to or correct a mistake you made

Fairness

• To be fair to everyone
• Not to withhold information that others need
• Not to take credit for something that someone else did

Honouring of contracts

• To keep to your word
• Not change any conditions after agreement
• To make right any mistakes
• Keep client up to date

Self-test: How Honest are you?
Here is a simple integrity self-test. The questions address both work and personal life situations. Since the test is in a self-testing format, be as honest as you can. Remember, no one but you has to see the results if you don’t want them to.

Fill each blank with a 5, 4, 3, 2, or 1, using the following scale:

5 = strongly agree
4 = agree
3 = uncertain
2 = disagree
1 = strongly disagree

_______ 1. I don’t give in to the temptation to increase my expense account.
_______ 2. I do a full day’s work for a full day’s pay.
_______ 3. I never take office items, even small ones, for personal or family use (e.g. pens, paper, envelopes, etc.)
_______ 4. If my fellow workers were as honest as I, our company would never have to worry about white-collar crime.
_______ 5. Those who know me consider me to be a man of my word.
_______ 6. “Loyal and faithful friend” is one way my friends would describe me.
_______ 7. I know that my behaviour will influence the behaviour of others, so I try to set a good example at all times.
_______ 8. Each day I try my best to remain honest in all situations, both in and out of the office.
_______ 9. If my wife / husband’s honesty is equal to mine, I would be satisfied.
_______ 10. In general, my approach toward others, both at home and away from home, is to treat them the way I would like to be treated.

Add up your score. If you score is between 40-50 you are very honest. Average score would be around 25-30. If you are not very honest, your score will be below 20.

Self-evaluation is a critical component of business ethics. People should spend as much time looking in the mirror as they do watching and judging the behaviour of others. Periodically examine and reflect on your own behaviour to ensure you are staying on the ethical track.

Being ethical – at work and away from the job – should not mean acting differently. Attention to ethics is not something you turn on and off. For it to be meaningful, practicing ethics must be part of your everyday life.

The ultimate leadership responsibility is modeling the behaviour you expect from others. To a large degree, you operate in a fishbowl. Employees are constantly watching you and learning from you. They rightfully assume that it’s okay to do whatever you do. Regardless of what’s written or said elsewhere in the organization, your behaviour is the performance standard employee’s will follow. That’s an awesome “comes with the territory” responsibility. But it’s also an awesome opportunity to influence the ethics of your work unit and the entire organization.

10 reasons why leaders should act in an ethical behaviour:

• Reduces pressure on employees to compromise ethical standards.
• Increases employee willingness to report misconduct.
• Improves trust and respect at all levels.
• Protects the positive reputation of the organization.
• Encourages early detection of problem areas and ethics violations.
• Fosters a positive work culture and improved customer service.
• Provides an incentive and framework for ethical decision making.
• Increases pride, professionalism, and productivity.
• Enhances your ability to attract and retain high-quality and diverse employees.
• It helps ensure the long-term viability of the business.

It is purely and simply the right thing to do!

Ways to ethically consider situations

Embrace racial, cultural and creative diversity.
Many of the benefits society enjoys have come from a very diverse group of people from throughout the world. For an example, we all enjoy technological advances that we all enjoy were developed by weird creative types who also were different. Diversity is something to be embraced. It is a great strength and competitive business advantage.

Don’t take what isn’t yours … Don’t accept what you haven’t earned.
This is self-explanatory. It applies to everything from office supplies to “the credit” for work done by others.

Maintain confidentiality.
If you agree to confidentiality, honour your agreement. If you can’t or won’t agree to keep a secret, make that clear before you accept the information.

Speak the truth
Don’t try to lie your way through an explanation or a sale. The short-term hassle you might save by doing that can come back to bite both you and your organization. And it’s just plain unfair to the people you deal with. Don’t know an answer? Tell the person you’ll get back with them. Then, do the necessary research. Pride yourself on being able to say that every answer you give is as correct as it can be. Ethics is about being and doing right, not sounding right.

How you do things are just important as the results
Be extremely cautious of the old “The end justifies the means” argument. Don’t work through a task only to find that the result has been tainted by the less-than-ethical way you chose to get there. Means are as important as ends and need to be treated as such.

How to say ‘no’ with tact?

1. You may be faced with a situation in which a partner or co-owner proposes an action that you believe is not ethical or outright wrong. Perhaps an employee comes to you with this situation. What do you do? What do you tell your employee?
2. You may be tempted to do what is asked because you know the person or you feel obligated for some other reason. Are you looking at doing the questionable action simply to “go along to get along”? If so, you would knowingly be doing what you believe is unethical. That makes you as wrong as the other person.
3. Fight the temptation. Take a stand. Say NO, with tact. Here’s how …
4. Don’t accuse the other person of being unethical. Instead, use “I” statements to describe your feelings.

State Your Objection And Concern Without Indictment.

• I have serious concerns about that, and I need your understanding …
• I honestly believe it is wrong because …
• I can’t do what I feel is wrong …

Propose An Alternative Action That You Feel Is Ethical.

• I think I know what you want to accomplish, and I feel there’s a better way to do it. How about …

Ask For The Person’s Help And Agreement.

• I really need your help.
• I want to make sure we both do the right thing.
• Will you go with me on this one?

If You Aren’t The Owner, Seek Assistance From Higher Authority.

Acting ethically sets an example. Others see your actions. Once the ethical barrier has been breached, others may assume it is appropriate to act unethically and improperly in many more situations.