Business Ethics

eth·ics

/ˈeTHiks/

Learn to pronounce

 

noun

1          moral principle that governs a person's behaviour or the conducting of an activity.

"medical ethics also, enter into the question"

Similar:

moral code  morals  morality  moral stand  moral principles  moral values  rights and wrongs  principles  ideals  creed  credo  ethos  rules of conduct  standards (of behaviour)  virtues  dictates of conscience

o     

2          the branch of knowledge that deals with moral principles.

Elizabeth Luckman, Gies Business Institute Illinois, offered an interesting look at the effect of the virus and various business/commerce responses.  How to respond in an ethical way.

How do we approach this topic in view of today's Global view?  With the economy in a downfall and many businesses changing how they are working/producing, you cannot give one answer. 

Is this a time of either / or?  Do we just shut down and wait or do we just keep moving as though nothing has changed?

As you can see in the diagram above, there is an overlap.

Let's look at some ethical perspectives to see the effect of the 3 options.

 

1)    The UN Universal Declaration of Human Rights – gives everyone to right to work, be paid a fair salary,

2)    Fairness – people are treated fairly

3)    Cost-Benefit

a.    Basic rights + obligations – the role of business to respect Human Rights and freedoms within business

b.    Treat everyone as an equal – in Healthcare triage is used to assess, the sickest get dealt with first – in Commerce – there is an equal opportunity but the best are hired first.

Do we have to work to be considered worthy?

Thought:  Cost-Benefit finds economic well being outweighs the health of workers.  In a Utilitarian Moral, humans must always be brought into the equation. 

We need global commerce to continue living to the standards we have established.  Are we ready to sacrifice by changing that path?  Are we willing to do the jobs that we bring others into the country to do? 

On one side we say we must shut down to contain the virus and maintain health.  But if you are out of work statistically your personal health suffers; you spend less; long term financial health suffers.

On the other side, we say we need to keep business going.  No spending equals no production.  But it also puts people's health in jeopardy.

Are we willing to sacrifice going back to work or do we invest in healthcare?

 

The third option is the middle ground. 

 

In this option, we look at testing everyone; wear protective gear; and restart commerce.  Health is the main focus!!  If health is prioritized then the economy will follow. 

Paul Romer, Nobel Prize Economist has really advocated this third option.  This step back from the either / or allows for a possible solution.  If anyone of the aspects (sides) are ignored, then disaster! 

So many of these factors are showing up in today's world, where do you stand?  Post your reply, and follow the Blog to see where others stand.

How customers buying will/has changed....

The pandemic has triggered some unusual reactions from people.  From hoarding of toilet paper to becoming couch potatoes, people are trying to establish some control in their lives.

Even as restrictions are being lifted, life is not “normal”.

Carlos Torelli, Professor at Geis Business Institute, has suggested the following 4 psychological responses to the events happening:

1 – Behavioural Immune System

-        any deviation from the “norm” may be interpreted as evidence of infection

-        avoidance of used products, possible contamination

-        emphasis on cleanliness

-        racial discrimination

2 – Conformist Behaviour

-        seek the familiar

-        behavioural conformity to majority opinion

-        liking familiar traits

3 – Social Avoidance

-        more introverted

-        less tolerant of foreigners

-        take fewer risks

4 – Thinking about their own death

-        focus on safety

-        cultural views

-        Western and Eastern cultures really differ

-        Western bias is based upon external causes (germ transmission), as shown through the detection process

-        Eastern cultures are attributed more to internal causes, shown through focus on safety and normal behaviour.

It is easy to see all of these responses in the world today. 

How do these responses transfer to customer buying behaviour?

People like something familiar.

                      Make sure you are the one they see first!

                      Buying from someone they know and trust.  Buy local first!

                     Online purchases have skyrocketed! 

                         Until people feel fully safe to shop otherwise,                                                                                              online purchasing is here to stay.  

With so many unemployed, needs outweigh wants.  People are shopping less for extras and more for everyday.  Initially, there will probably be a surge on extras as people get out a little, but there is little extra in the purse these days. 

 Are you going to continue your on-line presence?

People need to feel they are safe. What are you doing to keep them safe?  Cleaning, masks, acceptance are just some of the ways.  

Customer service.  Now more than ever people need to feel more human and less like a number.  Even a simple "thank you for shopping at our location" speaks volumes.

How has the new "Work from Home" paradigm changed your stock demands?  More casual clothing? More technology?

What changes have you seen that are different from what you expected?  

The coming months will definitely show some new trends and spending patterns.  We all will be watching and changing with the times...

Follow the blog and watch for other comments to see what else is happening...

 

Online Presence

When was the last time you updated the information on your website? In today's world, your online presence is probably first contact with customers!

Many businesses have beautiful websites that were developed 5 years ago and haven't been touched since. Product information, location and hours, even the About Us information is out of date.

Do your customers know what your hours and ways of service are?

Are you opening in this stage of the economic phase-in?

      What protocol are you putting in place for customer safety?

      What protocol are you putting in place for staff safety?

       Are you hours the same?

A website, today, is a dynamic extension of your business. You need to be able to update on a regular basis. Can you do this in-house?

Have a neighbour/friend look at your site. Can they answer any of the questions already asked?

How long does it take for them to look for the information? 

Home pages should be clean and exciting to see. If it takes more than 30-40 secs to load, a customer will back out and look elsewhere.

Speaking of home pages, when you log onto the internet what is the first page you see?  Is it your website?  The search engine (EX Google)?  You should set your homepage to your site.  Why?  Search engines rank websites by the number of hits on the site.  So each time you log into the internet, you will create a hit.  Then the secondary page you go to can be the search engine.  What a quick easy way to promote yourself!!!

If you have an e-commerce site (online store), is it just a click away? Can they purchase with a variety of payment methods?  Is your product line current?  Do you track your customer information so you can follow up with sales/promos?

Lots to think about, but so important.

________________________________

The KISS principle really comes into play with websites.

In marketing, the golden rule was 3 clicks. If a customer clicked into your site 3x's, it increased sales.

If the pages are uncluttered and can load quickly, then a customer will click to get more information. This is one of the differences in the Google Search Engine vs. MSN. One is clean with minimal hyperlinks, the other loads all sorts of apps, banners, info, etc. The time needed just to be able to access the search button was frustrating.

Remember, even today not everyone has highspeed access. If you are still on dial-up most websites will not even load, they time out the system.

You also need to consider how your site looks on a mobile device (phone or tablet). Most website design sites now include the Mobile site. This allows you to edit how it looks on a phone without affecting how it looks on a full computer screen.

Just like writing a story, the opening should capture attention. It can be a simple catchphrase, your logo for sure!

6 Key Questions to consider:

1 – Do you have an easy way to update?

2 – Can you receive email requests easily from site?

3 – Are you encouraged to look (click) further into website?

4 – Are your products/information current?

5 – Have you answered concerns on how you are dealing with safety?

6 – Does each page have your logo and name?

As your frontline persona, what do you want your website to say about you and your business?

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Supply Chain – how it affects us all!

Raw Materials(Supplier)  Manufacturing Warehousing Distribution(Supply) Customer

Supply Chain is more than the inventory sitting in your warehouse waiting to be sold.

What happens when one of the links breaks down?

Example – Transport

Each link of the chain requires transport.

We have over 230000 truck drivers in Alberta. This sounds great!

Issue: Not all drivers are certified to drive all types of vehicles or products.

Issue: Not all vehicles are equipped to transport specific types of products. You would not want to transport gas/oil in anything other than a tanker!

So the link was weakened.

Example – Flour

We have more than enough grain to mill. We even have enough mills to grind the flour.

Issue: There were not enough bags to put the flour into for distribution.

The missing link created a problem in bakeries – shortages of bread in stores.

Its the little things that seem to create the biggest problems.

Engineering New Social Operations

One of the biggest links that has failed in this time of pandemic, is Manufacturing.

Canada was once the leading country in manufacturing but we ignored technology and now it is too costly to produce so we import more and more. Plants and production in Canada have come to a halt.

To reopen we have to look at redesigning the workflow.  We must look at ways to limit social contact, improve productivity, source of materials, etc. Do we need to look at more automation?

Can Canada be self-sufficient?

• production costs would be higher
• internet access would need to be improved
• are raw materials available?

What price are you willing to pay? 

Each link in the Supply Chain must be strong or at least have an emergency replacement. We must look forward and figure out what our Canadian Chain looks like!

Crisis Management

This was the emergency plan we never thought we would need! Did your emergency plan include a recovery plan? Most of us only thought about the “physical” aspects of an emergency – flood, fire,
theft, vandalism.

So now we are here, what are we going to do? How are you going to recover? Will you come back the same? These questions are hard to answer and if you break them down into smaller sections, the process of finding those answers is not so overwhelming.

There are 2 different processes that people use.
1 – figure out what the final picture is and determine the steps back or
2 – look at the process one step at a time moving forward and determine where you are.

Whichever process works best for you, here are some suggestions on planning that recovery.

Short Term – what can you do now?
It is a little like a garden. In order to prepare the bed, you need to weed, turn the soil, review what you are planting, start/buy plants, and so on.
A – Assess the impact
    – This is a hard and painful step. But we must turn the soil and pull those weeds!
B – Acknowledge and outline steps for moving forward
    – This is a great opportunity to share with your customers/suppliers what you are doing to move forward. (review your planting!)
    – Appearing proactive instills a feeling of confidence
C – Formulate your response
    – What positive actions can you take? (start/buy plants)
    – Put it in writing! Collaborate with staff
    – Take a look at what you may want to change: processes; marketing; customer base, etc
D – Implement Response (Plant the garden)
    – Rewrite procedures
    – Look at retraining staff

Long term or Short term...remember Communication is key!
Communication with staff, customers, suppliers. Use your website, webinars you attend, email blasts to customers to get the information out...

Long Term – yes there is a long term! Just as gardens do not grow overnight, the business will not just hit the ground running at full speed! Continuous weeding and replanting, maintain and grows the garden. You may have a plan, but remember changes may need to be made as what is planned doesn't give you the result you expected.

Just remember to Communicate, and write down the changes. Write the change and the reason for the change...
A – Make your brand familiar
    – Use your brand in all your marketing
    – Emphasize local! What did your company do to assist your local community? Let people know you care!
    – Yes, toot your own horn!!
B - Emphasize your leadership position
   – Being proactive and looking to a restart shows a positive outlook
C – Safety First!
    – Minimize risk for customers! Even though the pandemic will pass, consumers will be cautious for some time to come
    – Emphasize warranties – how are you going to protect your customers?
    – Emphasize any new procedures that you have put in place to protect your workers and your customers

Welcome to Didsbury A.C. (After COVID)

During this time it seems that things will never be the same. Well, in reality, they won't.
It will be better!

Take the time to review what is happening in your business:
• what would you change if you had the chance?
• how can you improve productivity?
• what new training is needed for your staff?
• have you updated your online presence?

Now is a great chance to get these questions answered and plans implemented.
Not sure how to begin?
Dust off the old Business Plan and review. It is a great reminder of why and how you started.
Haven't got one? Then now is the time to begin! The Chamber has a template available here.

The Chamber also has information on training programs/assistance. Check out our webpage.

Why not take advantage of the downtime to Improve!!
Each week on the Chamber Website there will be a new “Didsbury A.C.” article sharing
different challenges and ideas on how to kick-start a new beginning!

Upcoming Topics:
Crises Management 
Supply chain – how it affects us all!
Online presence
How customers buying will change
Business Ethics