Photo by Benis Arapovic
From a business and career perspective, modern ethical issues are influenced by balancing seven issues. If handled well, ethics will enhance a company’s reputation, its employee trust and long-term robust success.
Ethics must include seven factors:
- Balance with social responsibility
- Ethical use of artificial intelligence (AI)
- Truthful marketing
- Data privacy
- Sustainability to strengthen resilience and returns
- Fairness with employees in hiring, wages and harassment
- Integrity in leadership and dealing with whistleblowers
1. Balancing social responsibility
Balancing social responsibility involves merging economic goals with environmental and society’s well-being. For long-term sustainability, it’s important to determine where profit and purpose are best aligned — not as opposing purposes.
What are the key strategies for trust and long-term success?
Aligning company values with the needs of customers and employee, alike. It needs to be achieved with an honest approach to growth vis-à-vis the impact on society. Finally, making certain to embed ethics into all operations with community engagement, fair practices and transparency.
2. Ethical use of artificial intelligence (AI)
A principled approach is needed for AI’s creation and its use. It must focus on fairness and avoiding any kind of bias. AI must be easily explained with transparency. It must be accountable with privacy.
AI is feared to replace jobs, provide inaccurate information, and adversely impact the environment and hurting efforts to regenerate and absorb the change.
AI goals should involve the prevention of discrimination, safeguarding data, allowing for human monitoring and stewardship, avoiding what’s commonly called “deepfakes, ” and effectively dealing with changes in society. That means care in aligning AI with human values.
3. Truthful marketing
Honesty is important — accuracy with proof about a company’s products and services to build consumer trust. Truthful marketing avoids exaggeration or misleading information. But it focuses on benefits and values.
4. Data privacy
Information privacy is achieved by successfully controlling the use, storage and sharing of data. It protects the rights of people and maintains the company’s responsibility for meeting legal standards and building trust.
Businesses must give consumers’ choice and obtain their consent to access and use their name, location and habits. Companies must have policies to promote proper handling and preventing misuse, theft and loss of data.
In the European Union, the General Data Protection Regulation (GDPR) is a law protecting its citizens.
5. Sustainability to strengthen resilience and returns
For such sustainability, businesses need to strategize to improve their operational efficiency, manage risk, innovate, get capital, and anticipate changes in customer demand for strong financial performance, and create new market opportunities and long-term value.
6. Fairness with employees in hiring, wages and harassment
For fairness, companies must be adept in providing equal opportunities in remuneration and treatment. They must not allow discrimination in their workplaces for race, sex, age or religion.
Companies must have clear processes for issues ranging from the reporting of discriminatory pay sexual harassment. In the U.S., compliance is required by the Equal Employment Opportunity Commission.
7. Integrity in leadership and dealing with whistleblowers
Integrity in leadership must include important characteristics: To model honesty, take steps to guarantee transparency, and to provide a safe culture so employees feel confident they won’t be punished or even terrorized if they report misconduct.
Companies must create confidential reporting channels. They must conduct fair, impartial investigations. They must prohibit retaliation.
Dealing with whistleblowers involves establishing robust, confidential reporting channels, conducting fair and impartial investigations, strictly prohibiting retaliation, and demonstrating accountability.
Conclusion
Ethical leadership is vital to avoid having a toxic workplace culture with discrimination and harassment and unrealistic or conflicting goals, and to prevent questionable use of technology.
Ethical leaders avert unnecessary fines, lawsuits, reputational damage, loss of talent and the ultimate decline in marketplace value.
In contrast, ethical leaders stimulate profits with strong customer loyalty, recruiting the best employees and promote sustainable growth for the long-term.
From the Coach’s Corner, here are links to leadership articles:
Values, Morals & Ethics for Leaders, Managers & Employers — Effective leaders, managers, and employers embody core values, morals, and ethics that foster trust, accountability, and a positive workplace culture.
18 Leadership Strategies to Earn Employee Respect — How to profit from good labor relations, and to leverage the perspective of employees – your company’s human capital.
8 Career Tips to Unlock Your Potential as a Leader — It’s important to note that leaders aren’t necessarily born. They develop themselves. They don’t settle or languish. They evolve by constantly assessing their progress for improvement. Here’s how…
Key Differences between Leaders and Managers — Leadership crisis — inspiration from UCLA’s legendary Coach John Wooden — how a care-taking manager becomes a true leader.
For Promotion into Leadership, Develop 5 Personality Traits — In selecting candidates for leadership, the risks can be great for both the company and managers in lost time, effort, and money. Managers need certain traits to be promoted in leadership.
“Globalization means that business strategy and business ethics cannot be separated from each other.”
-Ofra Strauss
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