What are Business Ethics:

Business Ethics deals with moral standards as they apply to business policies, institutions and
individual behavior.

Why are ethics important:

1. To build organizational goodwill in the market.
2. To enjoy competitive advantage in the market.

How to ensure Ethics in the system:

1. To communicate the importance and standards of ethics in business communication
to its employees, interventions have be designed and implemented to enable the
employees to understand what the business considers to be ethical practices.
2. Employees engaging in ethical conduct and communication should be recognized and
rewarded.
3. Management in the organization must also clearly communicate to the employees the type
of ethical standards that they must exhibit toward outside entities like customers, suppliers
and other classes of people who interact with the business.
4. Communication in this sense includes what they do and say, or fail to say or reveal to
customers.

What is an Ethics Policy?

To maintain ethical standards every company should have a well drafted ethics policy detailing
what type of ethical behavior is expected from the employees with respect to communicating
with in the company as well as outside the company with various stake holders including
customers through sales promotion activities, personal selling presentations and advertisement
claims. Employees should be told that they should have honest communications, report ethical
violations and be made aware of the consequences of unethical communications for the
individual as well the company. This policy should be widely circulated in the company for
knowledge of all.

What do you mean by Ethics Training?

Since ethical standards are very subjective in nature, it is important that all the employees of the
company are given adequate training with respect to the ethics policy of the company as well as
desired behavior. People should be clearly made to understand specifically what type of actions
 and communication messages the company considers ethical and unethical. This can be done
through conducting training programs making use of hypothetical scenarios, case studies as well
as role plays. Through these techniques the employees may be asked to identify ethical and
unethical behavior as shown in the role play or case study. In case of examples of unethical
behavior employees may be asked to discuss how the situation /communication could have been
handled more ethically. Such training should be provided to the employees at regular intervals.

What should be the Top Management Conduct?

The most important way of maintaining ethical standards of action and communication in an
organization is setting example by the top management through their own ethical conduct in
verbal as well as non verbal form. Senior authorities should be visibly seen to be engaged in
ethical communication with the employees as well as outside stake holders. Authorities should
reinforce ethical behavior in subordinates with recognition and reward while punishing unethical
behavior as a teaching tool for other employees.

What do you mean by Ethical Business Communication?

Communication is an important tool for business. Communications with employees, customers

and vendors may involve product promotions, job offers, contract negotiations and discussions
regarding the competition. Using such an important business tool requires a sense of
responsibility on the part of the communicator to adhere to ethical guidelines.

What are the Characteristics of Ethical Business Communication?

Some of the important characteristics of ethical communication are discussed below.

1. Clarity of the message

The use of ambiguous words or the deliberate misrepresentation of the true situation of events in
Business Communication is unethical. Some companies phrase their offers to customers in such
a way that the customers do not realize there are hidden catches in the offer. For example a
company may offer cash prizes on purchase of a product without letting the customer understand
that the prize will be taxable, or that to accept the prize certain other terms and conditions will
have to be met by the customer.

2. Honest and complete Information

Honesty is an important characteristics of ethical business communication. Whatever has to be

 communicated to the to the receiver of the message has to be fact based, truthful and complete
without important omissions Many companies show misleading advertisements making tall
claims about the effectiveness of the products which are generally not proven correct but
prospective customers fall for such claims due to manipulative communication and slick
presentation by the advertiser. Such communication may not involve absolute lies but may hide
crucial and relevant information. This is not ethical communication. Unethical communication
may lead to short term gains but damages the goodwill of the company in the long run. Ethical
communication builds trust and goodwill for the company.

3. Communicating without offending the audience:

It is important that business communication should be encoded using such words and tone
that the receiver of the message is not offended. For example, when the employees in a
company have be asked to increase their efficiency the message should not be conveyed to them
in a threatening manner using abusive language. In another instance during a meeting instead of
saying “I don’t agree. Everything you said is wrong”, a more effective way will be, “Please don’t
take it otherwise but what you are saying is incorrect.”

4. Maintain a relationship with the audience:

While communicating with the audience it is important that the communicator is aware of the
cultural background, value system and linguistics skills audience so a connection can be made
between the two. In such a scenario the audience will be able to trust the communicator and will
have faith that the communicator is thinking and acting in the best interest of the audience. For
Example, for making sales presentation in a rural area a sales man having knowledge and
understanding of that particular geographical area will be trusted more by the prospective
customers and hence will be able to make lasting relationship with them.

5. Clearly defined value system:

Every organization should have a value system which is practiced in the organization from the
top management levels to the lower ranks. If organizational members function on the mutually
agreed upon values, mutual respect between them will be present. Values and standards of
conduct become ethical principles for message content.

6. Accuracy of Information :

A message containing any information whether it is meant for internal employees or external
stakeholders must be true and accurate. Communicating without checking the truth of the
information can be highly dangerous for the organization. Identification of the source and testing
the information is necessary before communicating it.
What is Ethical Dilemma?

Many times in practical situations it happens that the communicator faces the dilemma whether
to give complete information or withhold information, present the information as it is or change
it a little so that the message receivers can be kept satisfied or encouraged to act in the way the
communicator wants them to. In certain situations communicating with honesty might result in
offending a person or a group.

What are some of the approaches to deal with Ethical Dilemma?

1. Message ahead of the person - Common good approach

In such situations, importance should be given to the message to be communicated and not on the
person or the group to which the message is to be communicated. Hence people should give
priority to the common good of the organization rather than interpersonal or inter-group
conflicts.

2. Decisions that produce more good and less harm – Utilitarian approach

While being in ethical dilemma with respect to the content of the message, the sender of the
message should consider the long term effects of the message on the receiver as well the
organization or any of its units. Ethical decision regarding the message is to choose the
alternative which provides more good and less harm to the people effected by the message as
well the organization.

3. Violations of Ethical Communication - Legal Violations

While the concept of ethics generally relates to a person's responsibility to communicate fairly,
without bias and with respect to those affected by the communication, violations of ethics in
communications can become legal violations. Breaching confidentiality or purposely
communicating lies about a person or an organization, for example, can be considered a legal
issue as well as an ethical issue. Legal violations of communication, can result in sanctions by
governing bodies or criminal ramifications. For example, stating that a competitor uses a
substandard material in his product without verifying the information violates ethics and may
result in legal consequences.

4. Truthfulness
 Sometimes, an untruthful piece of communication is just an oversight. However, not checking
facts is a violation of ethics, particularly when communicating information about a product,
competitor, customer or employee, into the piece of communication. A lack of fact-checking
shows a lack of responsibility to verify information that is being communicated. If the
information might prove detrimental to the subject, the communicator has an obligation to make
certain the information is accurate. Some examples of untruthful communication messages are
selective misquoting or deliberately omitting damaging or unflattering comments to paint a
better but incorrect picture of one self or one’s company . Misrepresenting, increasing or
decreasing numbers, manipulating data, distorting visuals like making a product bigger, or skin
fairer than what is etc

5. Confidentiality

Relaying information that was provided in confidence or that was overheard in someone else's
conversations is a violation of communication ethics. In addition, some breaches of
confidentiality can also carry legal consequences. Many contracts are written with confidentiality
clauses.

6.Offensive Messages
Communication that is offensive to the receiver or to anyone affected by the information
contained in the message violates ethical communication guidelines. The communication may
offend others because of references to race, gender, income level, background or education level.
Stories and jokes are prime examples of communication that have the potential to offend the
recipients. Any topic to which others may be sensitive should be avoided in business
communication, including religion and political issues, to avoid offending others and possibly
committing a violation of communications ethics.

Check list for Ethical Messages

1. Is the message honest, accurate and truthful in content?

2. Is it complete from the standpoint of what the receiver needs to know?

3. Is the decision of what they need to know based on how it affects them?

4. Does it show concern and respect for them?

5. Does the message pass the test of ethical values and code of conduct?
6. Will the message be clearly understood and maintain goodwill?

Example of Unethical Message

To: Mr. AjitPuri,

Manager– Logistics From:
Ms. Gita Pillai, Senior
Manager- HR Date:
September 21, 2015

Subject: Meeting on September 22, 2015

I need to discuss an important issue with you so please report to my office at 11.00
am tomorrow as I have to leave for an important tour day after tomorrow. Also
bring with you the details of your team members. This is urgent.

Gita

Why the above message is unethical?

i. The message does not start and end with a proper address to the receiver and uses
commanding tone for a fellow manager, hence is likely to offend the receiver.
ii. The message lacks clarity and completeness as it does not disclose the purpose of the
meeting as well as the reason for keeping the meeting at short notice.
iii. The message only shows the self –interest of the sender as is denoted by the use of word
‘I’in the message.
iv. The message withholds crucial information related to the details of the documents
required for preparation and conduct of the meeting.

Example of Ethical Message

To: Mr. AjitPuri, Manager – Logistics From:
Ms. Gita Pillai, Senior Manager- HR Date:
September 21, 2015
Subject: Meeting on September 22, 2015
Dear Mr. Puri

We need to discuss an important issue related to the appraisal of your team so you are requested to
come to my office at 11.00 am tomorrow. I hope this will be a convenient time for you. The meeting is
being scheduled at a short notice as I have to leave for an important tour day after tomorrow and the
appraisals have to be finalized by the month end. Please bring with you the details of your team
membersrelated to their self- assessment, grades given by their immediate superior as well as your
assessment of them, so that we can discuss in detail and take the matter to its logical end.

Best regards

Gita Pillai