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Business Ethics, Privacy, and the Future of Your Small Business

Business ethics are a vital consideration for all businesses, large or small, established or start-up. Ethics cover a wide range of business issues and can often be confused with legal requirements. In fact, ethics often require both legal and moral judgments to be made within the context of the business environment.

Any business manager or owner needs to know the facts before making any decisions on issues regarding business ethics. So make it your business to know as much as you can about recent legislation and high-profile ethical issues that may affect your small business.

Many small businesses ignore ethics, believing that a business ethics policy is something that will just fall into place in time. However, with staff and customer loyalty being vital to any thriving business, business owners who ignore workplace ethics do so at their own peril. Recently, there have been many examples of high-profile business disasters that have occurred mainly due to management overlooking vital problems with internal ethics. Don't let your small business go the same way; review your business ethics policy.

If they are to survive and eventually grow, small businesses need a definite and agreed long-term strategy in relation to ethics and employee/customer relationships. While decisions regarding ethics may not have an immediate, tangible effect on the small business' bottom line, the long-term benefits are clear.

Internal Small Business Ethics

Business managers have to work hard to ensure long-term loyalty from their employees. In any small business, knowledgeable employees are its greatest assets and developing a loyal workforce based on sound business ethics should be a top priority.

Golden Rules for Developing Internal Business Ethics

Treat all members of staff equally.
Set clear guidelines in your ethics policy of what is expected from all employees.
Be fair and consistent.
Praise and reward work that exhibits sound business ethics.

General Business Ethics

Business managers should not focus solely on internal business ethics. Legislation demands a basic level of compliance from every business, both small and large. Most businesses take further, voluntary action to improve their public image.

One of the main concerns in relation to small business ethics is that of the environment. In general, the public is far more aware of environmental consequences; many consumers will avoid purchasing from a business that they perceive to have poor environmental ethics. It pays to be ahead of the game and to promote good environmental ethics to the public.

Any business manager can see the benefits of establishing good business ethics both internally and externally, but this can be easier said than done. Here are some tips to get your small business ethics policies started:

Focus on the aims that your ethics policy hopes to achieve. All ethics policies should be clear in purpose and communicated to all staff within the business.
Build pride in your small business: Allow employees to take ownership of issues relating to ethics.
Developing good business ethics both internally and externally takes time, so be patient!
Update your small business ethics policy regularly.
Keep trying: Perseverance is key to developing a successful business ethics policy.
Reflect and build on your achievements. Look at your business as a whole and never be afraid to change your ethics policy if you feel that you are not seeing the full benefit within your business. Times change and so must you!
Ethics are fundamental to any business. Your ethics policy signifies to all around you what your business is about. Be focused, determined and patient when developing a business ethics policy for your business.
Develop and maintain a privacy policy that keeps personal and financial information on both customers and employees confidential.

Privacy Issues for the Small Business

Privacy is essential to all small businesses; make it a priority. No matter how trivial it may appear to the small business manager, maintaining the privacy of internal affairs, customer details and Internet dealings is vital.

Customer Privacy: The Federal Trade commission has passed many different laws about privacy, including The Gramm-Leach Bliley Act, which includes provisions to protect consumers' personal financial information, the Fair Credit Reporting Act, and the Children's Online Privacy Protection Act. Privacy policies differ for each business, but any small business, particularly Internet-based small businesses, will gain customer confidence if they are seen to be taking privacy issues seriously.

Internal Privacy: Small business managers must also ensure that employee privacy is maintained. Privacy is required in any employee proceedings within a small business. From recruitment to departure, all personnel records should be treated with a high degree of privacy. All records should be kept in a locked area with restricted access to those with a genuine business need. Business managers should ensure that they understand the relevant privacy issues within the context of their business.

Internet Businesses and Privacy

With many businesses now operating at least partially on the Internet, Internet privacy has become an increasingly important issue. Rules that apply to traditional small businesses also apply to Internet businesses. However, the Internet has also developed some new business privacy rules. All businesses need to pay particular attention to the Children's Online Privacy Protection Act, which governs how information gathered from children can be used.

Tips to Maintain Privacy

Ensure that all employees are aware of your business policy on privacy, particularly regarding the Internet.
Review your business policy on privacy as your small business expands and privacy needs change.
Be particularly careful if your small business deals on the Internet. Always ensure that you use secure sites when sending sensitive data via the Internet.
Keep up to date with privacy laws, particularly those directly relevant to your small business and the Internet, as this is a fast moving area of law.

Protecting the privacy of every individual who deals with your business is vital if you are to gain and retain customer and employee confidence. Create a comprehensive privacy policy for your business. Ultimately, efforts in the area of privacy will affect your business profits over the long term.

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