Business Ethics

You are right. There are many different opinions about what is ethical. However, mine is quite simple and direct. Here is my definition of business ethics.

"Doing what is in the best interest of your customers, employees, suppliers and associates while making a reasonable profit."

That is about as simple and straightforward as you can get. Now you probably want me to define the word reasonable. That is not too difficult either.

"If I would be willing to pay that price and I would be willing to have my wife and children pay that price, then it is reasonable."

I think we make the question of ethics too difficult. I like to keep everything as simple as possible. If I am not willing to pay $50 for Item A because I don't believe it has a value of $50, why should I expect you to pay it? Now you may argue that value is different to different people. But that really deals with "wants" and not value. For example, I don't shoot pool. I don't want a pool table. You may look at a pool table and say that it has a value of $1,000 while I say it has a value of zero. That is a matter of "wants." The real question in that case would be, "Would the average pool player who wants to buy a pool table be willing to pay $1,000 for that particular pool table?"

Okay, you say. But what about the person who can only buy the product from you? He is desperate. You can sell him something that no one else has. Aren't you providing a service that no one else can provide? Once again, I refer to the question, "Would I want my children to pay that much for the item under those circumstances?" If the answer is "YES" because I understand that they are getting a special service, then it would be an ethical price. I am a capitalist. I do believe in the laws of supply and demand. I believe that everyone (including the oil companies) should be allowed to maximize their profits. I simply believe that they should be implemented in an ethical manner.

I believe ethical guidelines are important for any business. They should be part of a company's policy or employee manual. Your reputation takes years to build but can be destroyed in minutes.

I welcome your comments. Please feel free to post them in the comments section. What do you think is ethical?