Paper: 07, Business Communication

Module: 06, Ethical considerations in Business communication

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Prof. IpshitaBansal
Paper Coordinator Department of Management Studies
BPSMV, KhanpurKalan, Sonipat

Prof. IpshitaBansal
Content Writer Department of Management Studies
BPSMV, KhanpurKalan, Sonipat
Items Description of Module
Subject Name Management
Paper Name Business Communication
Module Title Ethical considerations in Business communication
Module Id Module – 06
Pre- Requisites Definition, Nature and Types of Communication
Objectives To understand the ethical issues in Business Communication
Keywords ethics, policy, dilemma, accuracy, honesty , completeness
 QUADRANT-I

Module 06: Ethical Considerations in Business Communication

1. Learning Outcomes
2. Introduction
3. Practicing Business Ethics
4. Ethical Business Communication
5. Ethical Dilemma
6. Violations of Ethical Communication
7. Checklist for Ethical Messages
8. Summary

1. Learning Outcome
By the end of this module the students will be able to understand
 the importance of setting ethical standards in business communication.
 characteristics of ethical communication.
 role of Management in ensuring ethical business communication.
2.Introduction

Ethics as a subject studies and proposes what is good or bad andwhat is right or wrong in thought speech
and action.Communication,whether good or bad, effective or ineffective, verbal or nonverbal is value
laden and has consequences.While communicating the ability to understand and differentiate between
simple as well as complex messages, covert as well as overt messages is required for the effectiveness of
communication. An organization aspiring to build goodwill in the market must ensure that
communication inside the organization as well with the external stake holders of the company is ethical.
The suppliers, buyers, financiers, all want to do business with companies which are perceived to be
ethical leading in turn for the companies to enjoy competitive advantage.

The systems and structure for disseminating communication messages to employees, business associates
as well as public at large should be so designed as to have checks and balances at various points to ensure
organizational communications are ethical.

3. Practicing Business Ethics : A pre-requisite for ethical communication

Business Ethics deals with moral standards as they apply to business policies, institutions and individual
behavior. To communicate the importance and standards of ethics in business communication to its
employees, interventions have be designed and implemented to enable theemployees to understand what
the business considers to be ethical practices. Employees engaging in ethical conduct and communication
should be recognized and rewarded. 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. Communication in this sense
includes what they do and say, or fail to say or reveal to customers.

3.1 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.

3.2 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.

3.3 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 whilepunishing unethical behavior as a teaching tool for other employees.

4. 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.

4.1 Characteristics of Ethical Business Communication

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

4.1.1 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 mayoffer 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.

4.1.2 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.

4.1.3 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 athreatening mannerusing
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.”

4.1.4 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.

4.1.5 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.

4.1.6 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.

5. 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.

5.1 Approaches to deal with Ethical Dilemma

5.1.1 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.

5.1.2 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.

6.Violations of Ethical Communication

6.1 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
ofcommunication,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.

6.2 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

6.3 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.

6.4 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.

7. Check list for Ethical Messages

8.1 Is the message honest, accurate and truthful in content?

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

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

8.4Does it show concern and respect for them?

8.5 Does the message pass the test of ethical values and code of conduct?

8.6 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

Why the above message is ethical?

i. The messagestarts and end with a proper address to the receiver and uses respectful and
requesting tone for a fellow manager, hence is likely to result in compliance.
 ii. The message is clear and complete as it clearly states the purpose of the meeting as well as the
reason for keeping the meeting at short notice.
iii. The message shows the mutual interest of the sender as well as the receiver as is denoted by the
use of word ‘we’in the message.
iv. The message shares with the receiver, the crucial information related to the details of the
documents required for preparation and conduct of the meeting.

8. Summary

Ethics has an important role to play in business communication and deals with the way in which ethical
considerations are applied to business communications. Ethical communication strives for highest good
for all involvedand provides information that is complete, transparent and accurate for the circumstance.
Management has an important role to play in ensuring that business communication to all the stake
holders of the business like employees, customers, vendors, society and government is ethical. This can
be done through developing well defined ethics policy of the company, providing ethical communication
training to its employees and engaging in ethical examples of conduct. The most important characteristics
of ethical business communication are clarity of message, honest and complete information in
communication, communicating without offending the audience, maintaining a relationship with the
audience, clearly defined value system on which information is based and accurate information. It is
advisable for organisations that while designing their communication messages they must conform to the
ethical standards of International Association of Business Communicators.