Tag Ethics Matter

Why Ethics are Such a Big Deal in Business

Steve Keating Leave a comment

I should probably add “some” to the title of this post. As is, “Big Deal in Some Businesses.” Or I could have made the title “Why Ethics are Such a Big Deal to a Sustainable Business.” But I’d like to think that ethics matter to every business, and every business person, even though I know that’s not true.

Even a small group of unethical people can harm a once highly ethical organization. Ethics are fragile. They can slow down what seems to be progress at times. They can even seem to be expensive. That’s why some people simply don’t bother with them.

Some people are experts at justifying ethical lapses. They make a decision “for the business” that benefits them. They convince themselves it was ethical, even though it was not.

It was clearly an unethical decision but the passion with which they defend the decision is incredible to see. I sometimes think they actually believe themselves.

But, sustainable businesses cannot allow an unethical person’s passion, or even their results, to lessen the importance of ethics in their organization. Overlooking unethical behavior gets a business one thing and one thing only, it gets them more unethical behavior.

If you lead an organization, big or small, you must understand that unethical behavior will first weaken, and then destroy, its foundation. That’s not a guess, that’s not a maybe, that’s a fact.

There are a host of reasons why ethics are fundamentally important to a business, here’s the most important ones.

1. Trust and Reputation: Ethical behavior builds trust. It does so among customers, employees, investors, and other stakeholders. A company that is known for its ethical practices is more likely to attract and keep customers and talent. It will also have strong relationships with suppliers and partners. A good reputation is a big advantage. Ethical lapses can lead to scandals. Scandals damage a company’s reputation and erode customer loyalty.

2. Legal Compliance and Risk Management: Following ethics helps ensure obeying laws and rules. This reduces the risk of legal penalties, fines, and lawsuits. Ethical businesses are proactive. They identify and address potential legal issues. This can prevent costly lawsuits and regulatory scrutiny.

3. Employee Satisfaction and Retention: A strong ethical framework contributes to a positive workplace culture. When employees feel they are working for an ethical company, they are more likely to be engaged, motivated, and loyal. Ethical practices attract top talent and reduce turnover. This saves the company money on recruitment and training costs.

4. Customer Loyalty and Satisfaction: Ethical behavior builds customer loyalty. Customers prefer to do business with companies they perceive as honest and responsible. This loyalty leads to repeat business and positive word-of-mouth. These are crucial for long-term success.

5. Sustainability and Long-term Success: Ethical businesses often focus on sustainability, both in terms of environmental impact and long-term strategic planning. By considering the broader impact of their actions, these companies are set up for long-term success. They invest in sustainable practices. These practices may cost more at first, but they yield benefits. These benefits include brand loyalty, operational efficiency, and risk management.

6. Investor Confidence: Investors are increasingly looking at ethical considerations when making investment decisions. Investors see companies with strong ethics as lower-risk. This is because they are less likely to have legal, reputation, or operational problems from unethical practices.

7. Innovation and Creativity: Ethical companies often foster an environment where innovation and creativity can flourish. They encourage transparency and integrity. This creates a culture where employees feel safe to share ideas and take calculated risks. They have no fear of unethical repercussions.

8. Community and Social Impact: Ethical businesses recognize their responsibility to the communities in which they operate. Ethical practices help companies contribute to society. This can enhance their standing and create goodwill in the community and beyond.

Ethics are crucial for building a sustainable and successful business. They maintain trust. They ensure compliance. They foster a positive work environment. They secure customer and investor loyalty. By making ethics a priority, businesses can navigate challenges better. They can also build a strong base for future growth.

Ethics are the responsibility of every member of an organization. That’s an all day everyday responsibility. Once a year “training” in ethics does not absolve anyone of the responsibility to hold each other accountable to the highest of ethical standards.

The reality is every person in an organization must be ethical or the organization itself is not ethical. Think about that and you may be less willing to allow a person’s passion to explain away their lack of ethics.

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How to Work With Unethical People 

Steve Keating 4 Comments

Some people would tell you that figuring out what is ethical and what isn’t is hard. I do not agree with that. There’s a simple “test” to determine whether something is ethical. If you think there is even a slight possibility that something is unethical then it almost certainly is. 
If you’d be even the least bit embarrassed or concerned if someone found out you did it, then “it” is almost certainly unethical. 
People who struggle with whether something is ethical or not are usually only trying to convince themselves that something that is clearly unethical is actually ethical. They tell themselves “it’s not that big of a deal.” They tell themselves “well, I know other people who do it” so I can too.
Here are two rules I do my very best to live by. First, always remember that if something isn’t ethical then it’s unethical. There is no in between. Two, you’re either ethical all the time or you’re not ethical. Period. There is no such thing as “business ethics” or “personal ethics,” ethics are ethics all the time. 
Wrong is wrong even if everyone is doing it. Right is right even if no one is doing it. Living any other way only serves to cause you personal internal conflicts. Sneaking around, hoping no one finds out what you did or only being able to discuss it with other unethical people is no way to live. 
Working with unethical people can be challenging and uncomfortable. Unfortunately it is sometimes unavoidable in professional or personal settings. Here are some thoughts on how to navigate such situations.

  • Establish your personal and professional boundaries from the beginning. Make it clear that you won’t tolerate unethical behavior and ensure that you stick to your principles.
  • It’s crucial to know your values and principles and not compromise them due to the influence of unethical individuals. Maintain your integrity and don’t engage in or support any unethical actions.
  • Keep a record of any unethical behavior or actions you witness. This documentation can be useful in case you need to address the issue with higher authorities or HR at a later stage.
  • When dealing with unethical people, be careful with your communication and actions. Avoid sharing sensitive information or getting involved in any unethical activities.
  • If possible, find colleagues or friends who share your values and ethics. Having a support system can help you stay strong and provide guidance in handling difficult situations.
  • If you witness unethical behavior, consider addressing it with the person involved. Choose a private setting and approach the topic calmly and objectively. Avoid being confrontational, as it may lead to a defensive reaction.
  • If the unethical actions are affecting you or others in the workplace, it might be necessary to report the issue to a supervisor, manager, or HR department. Make sure to have your documentation ready to support your claims.
  • Working with unethical people can be mentally draining. Focus on your personal and professional growth, and try not to let their behavior negatively impact your career or well-being.
  • If the situation becomes unbearable and you see no positive change, consider whether it’s worth staying in that environment. Sometimes, it may be necessary to explore other job opportunities or find a way to distance yourself from the unethical individuals.
  • If the unethical behavior involves illegal activities, consider seeking legal advice to protect yourself and ensure you’re not inadvertently involved in any criminal actions.

Remember that every situation is unique. There’s no one-size-fits-all solution. It’s essential to trust your instincts and take appropriate action that aligns with your principles and personal circumstances. In extreme cases, consulting with an HR professional, an attorney, or an ethics advisor may be beneficial.
Above all, above absolutely everything else, never never ever sacrifice your core values just to get along with unethical people. They are most definitely not worth it and they never will be.

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Defining Ethics

Steve Keating 3 Comments

The concept of ethics is easy to understand but it is difficult to define in a precise way. Ethical behavior refers to treating others fairly but “fair” isn’t exactly precise either. 

 

When I think of fair I think of things like being honest, maintaining trust and credibility. Fair to me means following the rules and behaving in a proper manner. It means doing your share of the work and accepting responsibility when you don’t do something you should have…or did something you shouldn’t have.

 

An ethical dilemma is a situation where you have multiple choices and each choice has some undesirable elements with negative ethical consequences. I hear about supposed ethical dilemmas from time to time but most often they don’t meet the true definition of a dilemma. They don’t meet the definition because while most of the choices might have the potential for negative ethical consequences there is at least one choice that doesn’t. 

 

The actual dilemma in those cases is that we want to make one of the choices with the negative ethical consequences. We see what’s right but what’s right is not necessarily what we want. So we claim an ethical dilemma and do whatever the heck we want. 

 

I’m tempted to say we have all, at one time or another, sacrificed our ethics for something we really wanted. But I can’t say all; surely there are people in the world who have such high ethical standards that they would never trade them for anything. 

 

I’d love to say I’m one of those people but I can’t say that either. Well, I could say it but lying about your ethics seems to me to be an especially egregious ethical violation. 

 

What I can say is that I’m a work in progress. I understand the three levels of ethics and I’m much closer today to level three than I’ve ever been. The struggle is that when I think I’ve got level three locked in I slip back to level two. That’s not bad but at level two your motivation can be called into question. 

 

Level one is what experts call the Pre conventional level. At this level an individual acts in their own best interest and only follows rules to avoid punishment or receive awards. They break moral and legal laws if they think they can do so without being caught. Sometimes they don’t even care about being caught.

 

Level two is known as the Conventional level of ethics. This level is where individuals conform to the expectations of others. They uphold moral and legal laws because they believe it’s right and they want to fit in. 

 

At level three, known as the Principled level of ethics a person lives by an internal set of morals, values, and ethics. These are upheld regardless of punishments or majority opinions. These individuals are ethical all the time, in every circumstance, even if it means they are completely alone. 

 

Remaining ethical in the face of endless temptations to sacrifice your ethics is a huge challenge. It’s another area of life where a coach or mentor is an immense help. They can point out to you why your ethical “dilemma” really isn’t a dilemma at all. They can’t make you do the right thing but they can sure point you in that direction. 

 

What ethical level are you at? What will you do to get to the next level? Who is going to help you?


Answer those questions and then get a move on. Real ethical dilemmas don’t wait and neither should you

The Ethics of Leadership

Steve Keating 6 Comments

Here is one irrefutable fact about leadership: an organization and the bulk of the people who work in it will seldom be more ethical than the organization’s leadership. 

 

When key leaders in an organization demonstrate less than ethical behavior it gives permission for the entire organization to behave the same way. (Think Wells Fargo for a current example) 

 

Truly ethical leaders know that ethics are not a part time kind of thing. They don’t talk about business ethics or personal ethics, they simply talk and demonstrate ethics at all times. They know that you either are ethical all the time or you are not ethical. There is no in between.

 

Ethical leaders always do what’s right. There may be some dispute about exactly what “right” is but they do what they believe is right. They do it regardless of the consequences. They don’t seek popularity, they practice ethics.

 

Ethical leaders show respect for their people. They listen to them, truly listen without prejudging what they might say. They value differing points of view and when they must overrule or choose an opposing viewpoint they do so with respect and compassion. 

 

Ethical leaders know that they primarily lead by example whether they intend to or not. They understand that their people will do what the leader does far faster than they will do what the leader says. They set an ethical example in everything they do and hold high expectations that everyone in their organization will do the same.

 

Ethical leaders do not accept unethical behavior from anyone in their organization. They don’t overlook violations in an attempt to avoid confrontations. They are consistent when applying policies even when it’s inconvenient for them. 

 

Ethical leaders hold themselves accountable. They allow everyone in their organization to hold them accountable as well. They are transparent and open with their actions and in their communications. Their actions match their words…always. 


The term “ethical leader” is actually redundant. The fact is, if you’re not ethical then you may hold a position of leadership but you most certainly are not an Authentic Leader.


Are You the “Right” Kind of Leader?

Steve Keating 2 Comments

One of the many challenges of leadership is this little gem: doing what’s right and doing what’s popular are very often two different things. 

 

Authentic leaders do what’s right. They do what’s right even when it isn’t easy and they do what’s right even when it isn’t popular.  They lead by principle not by poll. They gather facts and information and then they decide. Once they decide they act. It’s pretty much always in that order.

 

There are many people in leadership positions who don’t actually lead. Instead they put a finger in the air to determine which way the wind is blowing and then they go with the flow. These imitation leaders have a need to be liked and that need is so strong that they refuse to risk upsetting anyone by doing what needs to be done. 

 

So sadly, right often loses out to popular or easy.

 

If you want to be a leader then buck up and trade-up from popular to respected. Do the right thing whether it’s popular or not! 

 

If you’re not sure what’s “right” then consult with trusted resources, ask your mentor, ask other Authentic Leaders what they have done in similar situations. Determine what’s right and once you do then act. 

 

Here’s the thing for those of you who still worry about your popularity: doing the easy thing may make you popular in the short-term but doing the right thing, while it may take some time, will make you a leader in the long-term. 


Leading isn’t always fun, it isn’t always easy and leaders aren’t always popular but true leadership is always rewarding. Reward yourself, always do the right thing.

Results Aren’t all That Matters

Steve Keating 3 Comments

If you’re a leader then you surely know that results matter. You’re in your position to get things done and as a leader you coach, motivate, and teach other people to help you get them done.

As a leader you must also know that results aren’t all that matters. Success is important but how you succeed is vital. Leaders who are willing to succeed “at all costs” almost always eventually learn that some costs are just too high, regardless of the level of success. (For the purpose of discussion here I should point out that the particular results I’m writing about are the “bottom line, profit driven” type of results)

If you’re a sales leader you must produce the numbers. If you’re a leader in finance you must make certain the numbers are accurate. If you’re an IT leader you must keep your network secure. Wherever you lead there is a desired result to be achieved. 

Authentic Servant Leaders are results driven, there should be no question about that. But they balance that drive with additional, equally important drives. It’s these additional “drivers” that help ensure their success as leaders goes beyond mere bottom line results.

First and foremost Authentic Servant leaders work to build trust in everything they do. 

They create a transparent organization where secrets are kept to an absolute minimum. They know that information isn’t powerful when it’s locked away in a safe. Information only becomes useful when it is shared with the people who can use it to accomplish something. 

Authentic Servant Leaders confront reality, always, and that helps them right the wrongs they comes across almost as fast as they come across them. It should be noted here that this is one of the biggest failings of leaders who are solely results driven. They allow “wrongs” to live and grow in the name of results. To them the ends absolutely justify the means. They don’t just bend the rules, they obliterate them. It’s that attitude that destroys trust and without trust they cannot truly lead.

Authentic Servant Leaders build trust through accountability and they know that accountability begins with them. They do not expect more of their people then they expect of themselves and those expectations are laid out for everyone in a clear and concise manner. They are measurable and durable, the expectations and how they are measured do not change for the sole purpose of achieving the desired bottom line result.

Authentic Servant Leaders never forget that ethics and morales must always outweigh the drive for results. They are more than willing to suffer a short-term setback for long-term success achieved with honor. They know that it’s not just what they achieve that matters, they know that how they achieved it matters even more.

If that all seems too pollyanna to you then perhaps you’re a bit too bottom line results driven to be a truly Authentic Servant Leader. You may want to consider balancing your need for results with the need to actually lead as well.

 

Ethical Leadership

Steve Keating 7 Comments

This is a short post and while it might be short it is most certainly NOT sweet. Sorry about that but this is not a topic any of us can afford to sugarcoat. 

In a perfect world “ethics” and “leadership” would be redundant. You would never need to see the words “leadership” and “ethical” together because when you saw one the other would just be assumed. Unfortunately, we do not live in a perfect world.

In business, in politics, in nonprofit organizations, and even in some religious organizations, ethics is anything but a given.

No organization will have higher ethical standards than the organization’s leaders. Leaders are the model for the type of behavior that will be accepted in an organization. Leaders who merely pay lip service to the importance of ethics should expect limited attention to ethics from their people.

Leaders who want to develop high ethical standards within their organization should make certain that their people understand that ethics are more than a training program. Almost every strategy session and planning meeting should include a discussion of any potential ethical implications. Open communication and shared responsibility for an organization’s ethical behavior will create an environment of trust where people can feel safe when speaking about ethics. When ethics can be openly discussed then they become more than a class or a manual, ethics become a way of life for the organization and it’s people.

There can be no exceptions when ethics are involved. Ethical leaders don’t allow excuses; they know that when excuses come through the door ethics go out the window. Ethical standards are either absolute or there are no ethical standards. Everyone, absolutely everyone, in an organization must be held accountable. Senior leaders and high profile managers set the tone for an organization’s ethics, if the tone they set is one of allowable exceptions then exceptions may become so common that no one takes ethics seriously.

Ethical leaders understand that the influences their people experience are constantly changing and as a result they must remain on guard for any and all ethical traps that their people could fall into. When ethics become ingrained into everyday actions those “traps” are far less dangerous. 

Ethical organizations are a product of ethical leadership. If you’re concerned about the ethics of your organization then look in the mirror, the odds are you’ll find at least part of the problem looking right back at you.