Business success is often defined by the profits a company makes from its innovations. While this is an effective measure, it’s actually rather simplistic, especially in the complex modern world we now live in.
As more and more people grow concerned about where their products come from, how they are produced and packaged and who makes them, ethical business practices are becoming more and more important. While profit may be a hallmark of success, it is no longer so important as to eclipse other issues. For any business to survive and thrive, it must demonstrate more ethical practices.
Environmental Awareness
The environment is the single most talked about concern of our times. From plastic pollution through to production methods, every single business must now think about how to reduce their negative environmental impact. But going green isn’t just about keeping up with the latest trends (or making the most of tax breaks for that matter). Going green is a matter of principle.
Ethically, everyone has a responsibility to look after the environment in whatever way they can. This isn’t just about going green now but also dealing with any previous issues. For example, if your business has unwittingly polluted the soil, you should do everything you can to clean up. You might start by pursuing your options. For example, you might ask, what is zero valent iron? or you might ask a specialist what else you need to do to restore the soil.
Reducing your waste is another good way to show environmental awareness and it doesn’t have to be difficult either. Often, waste reduction is all about maximizing your efficiency, which is also good for your profits. Periodically reviewing your waste policy is essential to ensure that your business keeps up with public expectations. This doesn’t just mean the amount of waste you produce, but the amount of waste you are pushing onto your customers. Reducing packaging waste is a serious issue right now and one you would do well to address.
As well as reducing your negative impact, you should also think about what positive impact you can have. Something as simple as directing funding towards environmental charities is a good option but if you can do something more tangible, that will be even better. Planting trees, using renewable energy and advocating greener behaviors will all help.
Social Conscious
Ethical business practice should benefit everyone. Equal pay, fair trade and an understanding of positive social change are all essential for the ethical business and yet so many businesses fail on these terms. It is vital that ethical practice starts at home and there are so many easy changes businesses can make it would be a shame not to.
To start with, you should think about the culture you are developing in your own business. Hiring a diverse staff is the beginning of this process and offering equal opportunities should be a reality, not just something you say. Building a company of staff who are happy and fulfilled will form a strong foundation for further social change. Start small, then expand as you learn by taking advice and suggestions from your staff too.
Another way to show social conscious is to engage with the local community. This might be a case of supplying funding for a kids sports team or sponsoring a local event. Equally, you might offer discounts to people in your local community and invite them to see what your business is all about.
On a more personal level, you as the business owner must get more involved with your local community. You might decide to sit on a local board or you could offer your support to fledgling businesses growing up around you. Similarly, you could volunteer your time and expertise to help the community more generally.
Though social engagement might seem like a lot of effort for not that much, it’s important to note that whatever you do, your business is going to have an impact on the local area. The more positive you can make that impact, the better for everyone.
Material Choice
Any business making products has a big decision to make: which materials to use. For any old business, this choice often comes down to cost and ease but if you want to be a more ethical business, you must think about a few other factors including where the material comes from, what its overall environmental impact is and how sustainable it may be.
Different materials have different properties and often there is no easy or obvious choice. For example, organic cotton may be a better option than man-made, plastic-based fabrics but when you consider how much water it takes to produce, cotton is still environmentally unsustainable. Balancing your options as an ethical business isn’t going to be easy but asking the relevant questions and then acting on your best conscience is essential.
One factor you should consider is the recyclability of each material you choose. For example, plastic is durable, lightweight and easy to work with so may be the best option for your product but choosing a more easily recycled plastic or recycled plastics to start with will limit your impact and could contribute to a circular economy. A similar argument can be made for cotton, which can be recycled and reused too.
While there is never a perfect choice, ethics is all about thinking carefully and making a considered decision. You may still have to use a particular method or material while you work on different options or wait for a friendlier solution to become economically viable. What counts is that you are aware and doing what you can within reasonable expectations.
The more your business can do to benefit the environment and the local community, the better standing you will have compared to your competitors. Customers are now much more active in seeking out the most ethical businesses and the whole face of industry is changing as a result. You can’t afford to compromise here, you have to do more to compete.
