How to Apply a Code of Ethics in Business

An advertisement said the car was dark blue and in pristine condition with only one previous owner, low mileage and a price tag that would make any buyer drool. Upon arrival at the location of this gem, a salesperson greets the buyer like a long-lost friend and then the bomb dropped. It seems that the gem of a car was no longer at the car lot.
However, another vehicle was available at the same jaw-dropping price. One look at that car and a buyer would scramble for safety!

This scenario describes the unethical business practice called bait and-switch. Bait-and-switch means that something is advertised to the general public at a price that is very appealing. The potential buyer is sucked in (bait) on the basis of the advertising. Upon arrival, the advertised item "has been sold" but the salesperson has another, similar (switch) item that you would "just love" in its place. The switch is usually of a lesser quality.

This is not an ethical business practice. So, what is "ethical" for a business or organization? Conscience is the basis of ethics. Conscience is our "inner voice" of guidance. Both "conscience" and" ethics" are abstract concepts and difficult to define. Both are also human traits and require cognitive activity in the brain. Therefore, for a business to be ethical, the individual human leaders must have a well-developed conscience. They are the business. Any ethical business starts with a leader with conscience, standards and values.

Consider the accountant who keeps two sets of books. This person is bending the rules and this unethical practice recently brought two major companies tumbling down: Enron and WorldCom. The leaders of each company were tried in court and sentenced to time in prison. Their problems began with the accounting firm that managed their books. The unethical practices found a way right up to the top - and those individuals paid the price.

Conscience is the mechanism that helps an individual to distinguish right from wrong and judgment from responsibility. The individuality a weak conscience may lean toward weak ethics also. Here in the States, a Consumer Protection Agency exists to assist these weaker business people.

The Agency has a Code of Ethics which must be followed by the various business organizations. This code serves as a guide for a business and a protective shield for the consumer.

In order to maintain customer goodwill it is important to maintain an impeccable reputation combined with the ability to remain above reproach.

We have become a global society, mainly resulting from the needs of the business community. Conscience must prevail as the interaction of the individuals representing each business will cross the lines of geography, nationality, language, race and religion. This is a tall order and the successful individuals will be the ones who are accommodating and ethical in all aspects of business dealings.

Yes, ethics and business must be packaged together for the good of the community - and the world. As we gain new understanding and appreciation of the members of our global community, businesses will be able to make many more ethical decisions which will be for the benefit of all people.