Ethics

Monday, March 31, 2008

Putting Ethics Before Business

Some people believe that ethics is of little concern to business people. Ethics is ethics and business is business. When faced with an ethical dilemma today, many upwardly managers tend to take the position that they must wear two hats and cloak themselves with two separate, conflicting codes of ethics. One is applying to the professional or technical aspects of their work and the other is for their business behavior.

This leads to the development of a schizophrenic professional personality, with the manager striving for professional excellence and high ethical standards for his own self, but resorting to unethical practices to achieve business success for his organization at all costs. Indeed this Dr. Jekyll and Mr. Hyde approach is at the heart of many ethical dilemmas in managerial decision-making.

Ethics is the discipline that examines one's moral standards or the moral standards of a society. It asks how these standards apply to our lives and whether these standards are reasonable or unreasonable that is whether they are supported by good reasons or poor ones.

Business ethics is a specialized study of moral right and wrong. It concentrates on moral standards as they apply to business policies, institutions and behavior through which modern societies produce and distribute goods and services, and to the people who work within these organizations. Business ethics in other words is a form of applied ethics. It includes not only the analysis of moral norms and moral values, but also attempts to apply the conclusions of this analysis to that assortment of institutions, technologies, transactions, activities, and pursuits that is called business.

Business is a cooperative activity whose very existence requires ethical behavior. First, any individual business will collapse if all of its managers, employees and customers come to think that it is morally permissible o steal from, lie to or break their agreements with the company. Because no business can exist entirely without ethics, the pursuit of business requires at least a minimal adherence to ethics. Second, all businesses require a stable society in which to carry on their business dealings. Yet the stability of any society requires that its members adhere to some minimal standards of ethics.

Business cannot strive without ethics; it is in the best interest of business to promote ethical behavior both among its own members as well as within its larger society. There are many difficulties involved in trying to study whether ethical companies are more profitable than unethical ones. The results have been mixed. Although, several studies have found a positive relationship between socially responsible behavior and profitability, some have found no such relationship. Other studies have looked at how socially responsible firms perform on the stock market and have concluded that ethical companies provide higher returns than other companies. Together, all these studies suggest that, by and large, ethics does not detract from profit and seems to contribute to profits. When employees believe an organization is just, they are more willing to follow the organization's managers, do what managers say and see managers' leadership as legitimate. In short ethics is the key component for any business.


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To Drink or Not to Drink, While on the Job!

I have noticed DJ's falling into to the situation, that they are unsure whether or not they should drink alcohol while DJ'ing.

You may be DJ'ing at many events were the hosts ask you if you would like to drink. You want to be very careful on how you answer this question.

To Drink or Not to Drink?

There have been many times I have been offered drinks at an event and I have just said "No Thank You."

There have been also times when the owner of a corporation or an important person has asked/ requested that I have a drink with them. You do not want to offend them by saying you don't like to drink on the job.

The best answer I have come up with is, "I have a lot to do now, but I will accept the offer later." Many times they will forget to ask you again later, but if they don't forget, it will be the end of the night and there will be a lesser opportunity for you to be offered more drinks.

You don't want to offend the client by not drinking, but you also do not want to have a bad performance or make it appear that you came to drink.

Performing Unprofessional

When people see you drinking behind the DJ booth, they see you as very unprofessional. This can reduce your chances of getting more jobs or just make the audience not happy with you.

They may ensure you that it is "OK" to drink, but I highly recommend not drinking.

Remember you are the coordinator

One of the most important things you need to be professional is the way you approach CUSTOMER SERVICE.

Your business is all about the customers, and if you want to drink wait till the next night you are not working and go out and have a few drinks.

As a DJ you are a coordinator and you need to make sure you can function at your best during an event. You do everything from planning the music to coordinating when certain parts of the events happen.

You do not want to be intoxicated because you may forget to do certain parts of the event, and when the night over the people will be upset with you and not recommend you again.

You really need to ask yourself: "ARE YOU THE GUEST...OR THE WORKER?" Remember, you are the one getting paid to perform.

Drinking on the job will never get you good referrals, and it may cost you some future jobs.

-Brian-

http://yourDJinfo.com


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Sunday, March 30, 2008

Ethics - The Conscience of Every Business

The thing with ethics is that entrepreneurs, and even the patrons themselves, must stay abreast of all applicably codes of conduct, written and implied, as well as the needs and preferences of their respective societies.

As far as marketing goes, fair and equitable prices go a long way. Although quite a few entrepreneurs insist that higher prices bring greater profit, shoppers will gravitate to other markets where the merchandise they want can be obtained at a far cheaper cost. People like to save, and even though many might be desperate at times, they are drawn to low prices and bargains. Comparing prices between competitors, not to mention doing research on what people are typically willing and able to spend on certain products, ensures that business representatives provide satisfactory service for the public. In the end, operations win favorable appraise and profits grow considerably.

Being truthful, sincere, straightforward and genuine with others, and offering quality merchandise and service is always the best way to go. Deception eventually comes to light, and businesses (and shoppers) who deal in such practices are subject to legal penalties and irreparably scrupulous reputations.

Being up on what these rules are is crucial for creating an atmosphere that is acceptable and pleasing. Terms like trust, honesty, positive image and mutual respect are involved for a reason; they are not only plastic words for describing an ideal world they denote a social and economic way of life.

This information above will be the key in creating a honest home based business. No doubt you have heard of many home based business scams. People call these website/programs "scams" because the information these sites provide never fulfill there promise of wealth or success. Do not let this form or style of business ethics be your avenue to income growth, because it will not work for long. And your business will fail!


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Friday, March 28, 2008

Poor Work Ethics Reveal Poor Business Leadership Skills

Talk to any business owner to C-Level executive and somewhere in the conversation there will be either a direct or indirect reference to work ethics. For the result of poor business work ethics is continually affecting the business from productivity to customer loyalty to profitability.

Yet, when I ask the following question:

Do you believe that your employees come to work to directly mess up your day, tick off your customers or negatively affect your business?

I always receive the same answer from business owners to C-Level executives to department managers, No! So, my simple little brain begins to think then what is the real problem here? Is it poor work ethics or poor leadership. This thought process has allowed me to look at poor work ethics from an entirely different lens.

The other day I listened to a CEO of a mid size company share with me in great detail about an employee who for over one year failed to turn in his expense report. This performance failure affected everybody down stream specifically the financial department who could not accurately report all costs and where necessary bill those expense costs to the clients.

Bottom line this refusal to comply was creating affecting customer loyalty both externally and internally. External customers were not getting billed and loyal internal customers knew that this person was not being held accountable because the behavior continued for over a year.

Then I was asked what did I think about this situation? My response was "To whom did this individual report? This is a leadership and management problem first." Upon seeing the look in the CEO's face, I realized the non-complying individual directly reported to this CEO. Unfortunately, the CEO believed the problem to be one of poor ethics on part of the employee and truly did not want to take ownership of the problem.

This story was not the first time that I have heard or observed poor work ethics as a symptom of poor leadership within management. When employees are not held accountable for the results of their actions even though they do not directly intend to mess things up, the overall performance of the organization dramatically suffers.

When management fails to take action, they begin to establish a habit of thought, an attitude and more important an underlying belief that this behavior is acceptable. Years ago I wrote an article about work ethics really being attitude of performance. Today this is even more true than ever before.

If management truly wants a high performance culture, where consistent positive work ethics are demonstrated each and every day, then these individuals must become leaders first and managers second by the following:

Communicating the statement of core values clearly Explaining completely as to what the core values mean in daily behaviors Securing agreement to adhering at all levels to those core values Accepting the responsibility to address the failure to adhere to those core values (accountability)

By taking such action, then management can truly look at work ethics from an individual perspective because organizationally there is alignment between the core foundational statement and the desired results.

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The Protestant Work Ethic - Just Another "Urban Legend?"

"Hi Ho! Hi Ho! It's off to work we go!" Like the words in the Disney cartoon melody, every day people merrily trek to a job they apparently enjoy. Are these people misguided social dwarfs out of synch with the rest of the workforce? Well, these people are for real - another "Urban Legend" bites the dust! Even though we often give lip-service to the "work ethic," it really does exist and it is stronger than one might expect. Frank Lloyd Wright, the famous 20th Century architect, stated, "I know the price of success: dedication, hard work, and an unremitting devotion to the things you want to see happen."

The "work ethic" is personified by those who have found work that provides both a service to society and personal satisfaction. It is their passion - their life "calling." One's calling can follow any career path - writer, accountant, missionary, teacher, auto mechanic, carpenter, cook, social worker, attorney, or brain surgeon. It takes commitment and hard work, but you enjoy it and it feels like the right fit for you. You may actually become so intensively involved and committed that your "calling" becomes "one" with the company or organization's mission.

Encompassing centuries, this commitment and dedication to hard work has been exemplified in such societies as the Amish, Mennonites, Hutterites and the Shakers. The Shaker phrase attributed to Mother Ann Lee, the founder of the Shaker sect: "Put you hands to work, and your hearts to God," encourages a simple life of hard work and spirituality. We might also identify with Ben Franklin as another example who espoused his philosophy of avarice and strong work ethic.

How could this concept of a work ethic develop and endure in a society where the concept of "entitlement" now seems to be so prevalent? The roots begin with Max Weber (Vber), one of the leading founders of modern sociology, and his renowned work on modern social science, The Protestant Ethic and the Spirit of Capitalism. In the 1930s, after the book was translated into English, the U.S. workforce began its on-going love affair with the "Work Ethic" - a social trait that would become the backbone of American enterprise and world leadership.

The arduous work of capitalism, according to Weber, is closely associated with intrinsic Protestant religious beliefs and behavior. Only in the West has rationalization in science, law, and culture developed to the extent where political, technical, and economic conditions depend on highly trained government officials. He further states, "However, all the peculiarities of Western capitalism have derived their significance in the last analysis only from their association with the capitalistic organization of labor."

Historically, certain Protestant denominations had a strong influence on the members' development of business acumen and the ethic of hard work. These Protestants developed a sense of economic rationalism that emphasized diligent and dedicated work. Each and every Sunday, Methodist and Presbyterian ministers extolled the virtues of the "Work Ethic" to their congregations through lengthy and tedious sermons.

According to Weber, the following traits characterize a strong work ethic:

ª FOCUS ON WORK - We know how precious our time is and that it is limited. We must have a passion and strive for excellence in our work. Work time should be used efficiently and wisely with a desire to make money as a fruit of our labor and not spend it irresponsibly.

ª UNPRETENTIOUS AND MODEST - We should act and dress appropriately - dress should not be flashy to attract attention or cause distraction to others.

ª HONEST AND ETHICAL: One should possess and exhibit strong ethical beliefs, and a moral code of behavior, i.e. The Ten Commandments. To do the "right thing" when no one is watching.

The power of a free labor force has made capitalism a very powerful force in our society. Riding high on the wave of post WWII patriotism and intense business competition, we became rightfully proud of our fast-growing economy and the image of hard working Americans. We take pride in who we were and what we produce as a nation. The greatest and most successful nation on earth! Although the original religious aspects eventually faded, the "Work Ethic" is firmly entrenched as a powerful and valued American social trait.

Unquestionably, we do not desire a workforce dominated by mindless "robots" even with a good work ethic. We need innovative thinkers and committed leaders that can guide us through the 21st Century and beyond. It is essential that we continue to build a strong labor force committed to an indomitable "Work Ethic" - workers that are honest, ethical, and rational.

We also need leaders that will not be afraid to work and who will take the responsibly to guide new projects and develop employee potentials to exceed projected goals. We need people passionate about a mission. A good "Work Ethic" is essential to a strong economy, and a strong vibrant society.

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Tuesday, March 25, 2008

Ethical Business Or Just A 'Green Wash'?

Coming off the sea at the end of Brighton Pier, and blasting its way through the air conditioning system of the Horatio Bar, a gale was blowing down the back of my neck.

Despite this, sitting wrapped in my coat as if about to leave, I listened with great interest to the 'ethical' businesses who bravely gave their websites up for scrutiny at the 'Striding Out - Ethical marketing and branding event' held in Brighton, UK, at the end of February. It was a great event, but I do have a general gripe about these kind of sessions.

As an entrepreneur, I am frustrated by the lack of goody bags at these kind of events. Yes, we get the information and inspiration, but what exactly am I supposed to DO now? What can I take away that allows me to put this newfound knowledge straight into action

I believe one thing is to create an ethical sustainability policy for my business, but what I really want is to walk away from these kind of events with a template for creating my own, with links to appropriate help if I need it (even if that means paying for that help).

I was inspired by Sam Wilson of EcoEvents who has done so much homework in creating ways for events to be more ethically run, but also (and just as importantly) defined systems and mechanisms for measuring the successes and failures, and making the organizers of the events accountable.

And if businesses want to not just be part of the 'Green Wash', they should be accountable, at least to themselves.

What is the point of me creating a sustainability policy if my vision is not balanced by my commitment to achieving deadlines? And buffeted by the realities of every day life, will I not need to make constant revisions for my ethical goals to still be attainable?

I spoke recently with Vania Phitidis, an elected member of the Green Party, who is working with Wealden District Council on awards for 'green' businesses. Vania is keen to give advice and encouragement. Businesses should not be shy to make use of their local green MPs to get feedback and advice.

I shall be asking for plenty of help to not only get my first ethical sustainability policy for my business into good shape, but I then want to encourage other businesses to do the same, hopefully providing a basic 'template' that they can use as a starting point. Maybe I need to begin a section on the blog part of the site called "Starter Packs" - self help guides for SMEs who want to make the first steps themselves into creating ethical policies for their businesses? Perhaps even have a 'an ethical PR starter pack' - or 'Create your own branding workshop' (which would incorporate your ethical values into how you present your business)?

Getting expert guidance would be even better, but that costs money, and sometimes I think it is good to make the first steps on your own, since it is your own passion and commitment that will lie at the heart of any 'policy', and that may need some uninhibited development first.

One of the companies at the Brighton event were Green Rocket (who also trade as Blue Rocket, but their principles don't change with the colour). Their genuine ethical agenda is refreshing to see in the marketing industry. They have created a succession of articles on how to be an ethical business , and try to set an example for the values they hold dear.

Kim Stoddart, Managing Director and Founder of Hove based ethical media relations consultancy and social enterprise, Green Rocket, was concerned about the environmental impact of her business from day one. As a community interest company with an authentic environmental purpose(75% of the company's profits are reinvested in green initiatives), Kim felt that the company really had to be green to the core and that meant the first place to start had to be the office.

Prior to launch, an environmental charter was put in place which was designed to reduce the environmental impact of the business' everyday operations. This looked at every area of the business and just some of the broad range of initiatives put in place included: recycling everything recyclable, including paper, cardboard and plastic waste as well as old computer equipment, mobile phones and furniture.

Choosing suppliers for their green and ethical credentials; such as Good Energy for electricity, Magpie for recycling, the Co-Op for banking and Green Your Office for office supplies and office cleaning. Offices were chosen in a central location, to make it easier for staff to walk, or get public transport to work and to travel to client meetings.

Being an 'ethical' business is about more than leaving a reduced carbon footprint. Green Rocket is a social enterprise, but what exactly IS a social enterprise, and how can my business take on some of the same values and practices?

I asked this question of Martin Murphy, who along with Tom Howat runs Network 2012, a website dedicated to promoting the values of social enterprises.

Martin's explanation was as follows:

"When thinking about this question I suppose the natural place to start is my own motivation. Late in 2006 Tom Howat, my now business partner came to me with an idea he wanted me to get involved with. That idea became Network 2012 an online business and social networking website and events company and we have been up and running now for just over 8 months with nearly 400 members signed up.

"Our aim is to charge a small monthly or annual membership fee, which will contribute towards providing bursaries for those individuals, or groups who wish to start their own social enterprise but would otherwise struggle for start up finance.

"In a small way we are working towards a more inclusive society and a fairer distribution of wealth and that is the driving force behind Network 2012. Working towards a social goal as well as a business goal is in my view what makes a social enterprise. In essence we want a fairer world and see business as the method of providing that fairer world. In our case an online networking business.

"Though in business people see things differently and there are many different methods of working. For example some want to maximize profits and use those profits for a good cause while others wish to provide supported employment for those who would struggle to gain employment through the normal channels, and are not necessarily profit focused. Break even focused, sustainability focused maybe but not necessarily profit focused.

"But then what does profit mean anyway? We live in a world today where I would argue for the most part profit is almost seen as another word for greed. We hear of "fat cat bonuses", we see utility companies making what some might call obscene profit while the average person struggles to pay their bills and get by.

"The world I want to see would entail those same utility companies run as social enterprises and the profits reinvested in the community instead of going who knows where! What if the profit were used to ensure that no one dies of exposure in winter instead of high bills being a reason people wont turn their heating on and do die of exposure? One day this is how it will be and I'm convinced that when that day comes we will look back at the way we generally do business now and see it as almost barbaric!

"At the moment we have people who we describe as social entrepreneurs out there running social enterprises and working towards a better world. They are not people who take the attitude that we'll never make a fairer world it's too big a job they are people with a can do attitude who believe we have to start somewhere. They are heroes who work not just for their own benefit but also for the benefit of others. They do this often by working all the hour's god sends with very few resources and the usual struggle for start up funding and most would say they love it!

"I admire every single one of them. They are tired of living in an unfair and out of balance world where we see daily worldwide inequality, extreme poverty alongside fantastic wealth and children dying for lack of food, clean water or medicine and are doing something about it.

"It is the doing something about it through business that makes a social enterprise and if current trends are anything to go by in the future we will be much more of a force to be reckoned with. By all accounts the social economy is growing 10 times faster than the normal economy. Being aware of this fact could be the make or break of any business! "

I agreed wholeheartedly with Martin, but had to admit:

"Martin, I want to develop a more 'ethical' business, but don't know what I can do to 'make a difference' right now, whilst struggling to run my small business. I know that with making good 'profits' will come the opportunity to reinvest it and do good, but what can I do now while my business is still growing?"

"I take your point completely. I appreciate that starting and running a small business is difficult I think there are definitely things small businesses can do.

"Check out their suppliers for example. Can they use a business that is a social enterprise/fair trade? Hopefully one that is competitive. Can they employ someone with disabilities, a single parent or long term unemployed?

"The overall advantage and this is something that shouldn't be lost is that in the long run this kind of thinking may give that company a competitive edge.

"I attended a round table discussion last week with some representatives from large corporations all talking about Corporate Social Responsibility and whereas before the job of leading CSR was one given to someone an employer didn't really know what to do with now they all have experience in the marketing arms of their respective companies.

"A lot of it is about brand recognition and appealing to a consumer who is becoming more conscious about what products they buy. I also think that in future perhaps the rate of corporation tax may be lower for companies that do something for their communities.

"As I've said earlier though Suzy I do think it may be hard to convince someone struggling to get their business off the ground that they can do anything but I'm sure with a bit of thought that they can."

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Seven Reasons Why Ethics Helps Your Business Succeed-And Five Easy Action Steps

7. You're much more likely to build a lasting business, and build it more easily

6. When your customers trust you, they come back again and again

5. It's much easier to build joint-venture relationships that can exponentially grow your business

4. When your customers fall in love with the way you do business, they start recruiting other people to do business with you--they actually become your unpaid sales force

3. Your business will be worth far more when it's time to sell it

2. If you tell only the truth, you don't worry about being caught in an embarrassing and profit-killing lie

And the number one reason...

You never have to worry about seeing your picture on the front page, in handcuffs

Action Steps:

1. Measure the impact of any action on all stakeholders: customers, employees, suppliers, neighbors

2. Always tell the truth

3. Sell only products that you can fully stand behind

4. Buy a copy of the award-winning book Principled Profit: Marketing That Puts People First, which tells you in 160 pages exactly how to translate your high ethical standards into bottom-line dollars. This book has been endorsed by some of the top names in marketing, including Jack Canfield, co-creator of the Chicken Soup series, won an Apex Award, and has been re-published in India and Mexico. http://www.principledprofit.com

5. Show your commitment to ethics by signing the Business Ethics Pledge, with signers in 30 countries, and take advantage of the resources available to you as a signer (signing also earns you a discount on the book, as a way of saying :"thank you").

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Sunday, March 23, 2008

Self Importance Reveals Your Own Business Ethics and Unimportance

How many times have you attended a business networking event and observed the following:

People talking on the cell phones when someone is speaking from the podium? People texting on their Blackberries or Treos or PDAs responding to text messages or emails? People with wireless Bluetooth ear pieces or similar devices? People talking on the cell phones in the lobby and letting everyone know that they are talking on the phone?

What does this really tell you about these individuals? First, they have a lot self importance. Second, they are rude and clearly do not have positive business ethics. Third, they are truly people I probably do not want to do business with given their observed behaviors.

During a recent luncheon honoring some local and dedicated business leaders, I watched at my table (6 men and 3 women and none being physicians) five of the men busy replying on their PDAs. One gentleman actually did leave the table and went outside to take a call. My thought as I looked at all of this activity is that "No one unless you are the President of the United States or a physician on call, is that important!"

As I continued to watch this type of self importance behavior, I began to have these two thoughts:

Would anyone want to do business with a CPA, attorney, dentist or real estate agent who cannot give her or his focus for at least 30 minutes? Would I be confident in referring one of these individuals?

Our behaviors demonstrate to the outside world as to our internal attitudes and the beliefs that drive those attitudes. Sometimes, individuals forget that the rest of the world is watching from an entirely different perspective.

If we look back 10, 20 and 50 years ago, was this type of behavior prevalent. For the most part, no because the excuse of technology was not available and people in general were far more polite and respectful. Men took off their hats when the flag passed or when entering a building and always in a restaurant. Women also were more respectful in the marketplace from their dress to their own behaviors.

Business ethics is the sum total of your behaviors and how you respond in public regardless if public means your place of work or public means a business luncheon. As some would say, leave your ego with all of your own self importance at the door for you never know who is watching.


Source: http://ezinearticles.com/?Self-Importance-Reveals-Your-Own-Business-Ethics-and-Unimportance&id=1060471

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Why Study Personal Ethics in Organizations?

Ethics is very personal. In so many ways ethics is the very "how?" and "why?" of relationships. Your integrity, values and fortitude are expressed in your ethical behavior and position in all your relationships. Among your relationships, those at work and/or your membership in organizations must be attended to with a special kind of care, similar to but different from those of a domestic nature. Why?

Earning Your Living. It is very likely that your work is how you support and sustain your household in financial terms (including any benefits that might come along with your job). Most people "need" their jobs. Your ethical behavior at work is how you ethically earn your income. We presume here that your job is fundamentally an ethical undertaking. In this essay, robbery, theft, fraud and other similar enterprises which damage persons or property are excluded from our discussion. The extent to which you earn "an honest living" has much to do with how ethically honest you are. Thus, to be ethical, you must do honest work. Ethical work in an ethical work place helps you keep your job, too.

Your Influence on an Organization. Membership, both at work and by way of belonging to groups, is where you impact and influence how your industry's or organization's reputation is formed, for good or ill. Truthfulness, honesty, fairness, dependability, quality, helpfulness, etc., all help form public opinion of your group and industry. Note how people tend to group other people together by types and then render a universal statement about them all based on an experience or report about one or a few of them. Politicians, the media, lawyers, bankers, bureaucrats, and the like all bear the impact of a negative label. You as an individual who is thoughtful and responsible have the opportunity to leave others with positive memories of their dealings with you. Frankly, many positive memories fade away, but negative ones often outlive their usefulness. All the more reason for you to give serious consideration to how you relate to others. We certainly seem to need many more positive memories than the negative ones.

Growing an Ethical Organization or Business. Presuming you have an ethical leadership group in your business or organization, your personal ethical behavior will be both attractive to them and supportive of them. Thus, how the many behave together ethically actually increases the ethical qualities and intensity at that group and industry. Your ethical behavior makes it easier for them to be ethical, and they in turn make it easier for you to be ethical. There is a mutual benefit to all concerned when we each and all commit to being our best.

Good Example. Others watch how we do our business. They consider and talk about us and our business. One never knows fully just how much of a positive influence might come about from our ordinary ethical behavior, i.e., from our ethical second nature. If it is true that "what goes around, comes around," then the positive impact of our ordinary goodness may be great. You might be an unsung hero already!

Personal Peace. Ethical people sleep well. Those who have embraced a deliberately healthy ethical way of life simply don't have to worry excessively about stories they've told, mistakes they've made or weaknesses they have. They have already engaged reality from a healthy perspective and committed themselves to being their best. They can be proud of and comfortable in what they have done and how they have done it. They can tell their families and friends what they are up to and will likely be respected for their genuine selves.

Ultimately, all these reasons become even more important the greater one's personal ethical awareness becomes. Those who study the ethics of being in an organization are those who take themselves and their memberships seriously, and want the world to be a good and healthy place for all. One doesn't become a very ethical person by accident. It takes effort, help, some degree of learning and a desire to be good.

So, if you enjoy (a) earning an honest living, (b) having a positive moral organizational influence, (c) building your organization or industry's positive reputation, (d) giving a good personal example to others, and (e) the genuine peace and well-being that comes from an ethical life, then you will enjoy what you learn from the deliberate study of organization ethics. Your "ethical awareness" can always increase by a systematic and understandable presentation of how personal ethics works in organizations. Your ethical presence can be a powerful force in the lives of those around you!


Source: http://ezinearticles.com/?Why-Study-Personal-Ethics-in-Organizations?&id=1058725

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Saturday, March 15, 2008

Business Ethics - Not All Money is Good Money

Business ethics are sometimes hard to define. Have you ever been offered money to do something that didn't pass the "smell test"? You didn't know why, but you just had a gut feeling that something wasn't right. My advice...don't ignore that feeling. What you do in your business potentially effects more than just you; it effects your staff, your customers and your family.

It Can Happen to Anyone

The cases of Enron and Martha Stewart are extreme cases that we don't see everyday, but consider this story about a medical doctor, Daniel Carlat. Dr. Carlat is a psychiatrist who marketed pharmaceutical products for companies. At one point, he earned one-fifth of his salary by being on the speaking circuit, "educating" his colleagues about these products. Nothing about what Dr. Carlat was doing was illegal, but in the end Carlat's conscience wouldn't let him continue and he ultimately quit. He came to the realization that not all money is good money. He made a choice that allowed him to live with himself.

Ethics Checklist

Maintaining your ethical standards isn't always as simple as a gut check, but that certainly can be starting point. Use that feeling to pause and investigate further. Create an ethics checklist to go through when you need it. Here's an example of questions you can ask yourself:

Does this assignment violate any laws?

Does this assignment violate any rules of ethics within my profession?

Does this assignment violate any company policies?

Does this assignment violate my personal moral or ethical standards?


Franchising

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You Cannot Be Serious - The Decline of Decency In Business

I don't know about you, but I'm amazed that anything ever gets done in this world.

When I started out in business fifteen years ago, it seemed that people were a bit more concerned about honoring their word. But as time has progressed, business etiquette has slowly taken a back seat. In fact, decency seems to be evaporating by the minute.

Now I'm not pretending that I'm innocent in this matter. I honestly started out as a team player. I tried my best to be good and decent, but I allowed other people to influence me. With the passing of time, I eventually found myself slowly slipping into the same slimy inconsiderate hole.

Tell me, what's so difficult about returning a phone call? Did a truckload of people have major tongue surgery, preventing them from forming the sentence, "No, I'm not interested?" What's the deal with my emails going unanswered? They're not SPAM or emails that don't deserve an answer. And why would a person schedule a "next day" meeting forty-five miles from my office and not show up...or even call to apologize for missing it? It seems some people are fine with making promises they don't keep and inconveniencing others. After a while I stopped calling to inquire, "Hey there so and so. We had an appointment. Why didn't you show up." It's a question that's not worth asking.

At this point you may be thinking, "Maybe you just need to deal with people who are a little more professional." Now tell me, who should be more professional than doctors, lawyers, preachers or a high-powered marketing executive with the new AT&T? Can I get some "Amens" anybody?

If you're one of these people I'm writing about, practice picking up the phone...or have a representative from your office call...to just say "NO." It's really easy to do and it will save a lot of unnecessary frustration for others who are trying to hold on to their last bit of decency.

My other pet peeve: businesses that love to play the waiting game. They know they consistently "over schedule" appointments and leave people waiting for hours. Is it their ego? Do they believe their time is more important than mine?

My husband used to visit a dentist where he never had to wait more than five minutes to be seated in the examination chair. Unfortunately, this dentist retired and my husband had to start playing the waiting game. As John Stossel of 20/20 says, "ENOUGH!"

Ok, everyone...all together now...say it loud and clear ... "ENOUGH! I'm not taking it any more!" One more time...

Be honest for a minute. Didn't you feel a bit liberated from all the foolishness? And ladies...just out of curiosity ... when are you going to liberate yourselves from your hair salon?


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Fake Doctor Excuse - Sin Or Savior?

The ethics of buying a fake doctors excuse is a hot topic of debate these days. Although opinion varies, the fact is that thousands of people each day buy fake doctors notes to miss work or delay a test at school. This is not surprising when you think that most of us have told a "little white lie" at one time in our lives. Many would say that small lies are so common from politicians to used car salesmen that we often take them for granted. Clearly, we all have our own set of ethics we follow and the buying of doctor's excuses is an individual choice that is not for me to judge.

What about the ethics of those who sell fake doctors notes? Considering the hundreds of companies that sell doctors excuses on the Internet the demand for them must be high. However, this should not be surprising. For hundreds of years the main focus of business was to provide products and services that others wanted. On most of these sites it is obvious the doctors excuse is not real; they often provide disclaimers attesting to that. These companies are not interested in judging consumers, just providing what they want. What is my advice to consumers? - If you are going to by a doctor's note, make sure is a good one.

One of the areas that may be effecting the purchase of fake doctors notes may be health care. You have only to read a newspaper or watch TV to see that the Health Insurance problem in the U.S. is a crisis. Perhaps that is part of the reason thousands of workers and students buy a doctors excuse online everyday. With millions uninsured and the cost of health care rising access to doctors for a visit is growing more difficult. As more and more products and services move online it may not be long before many things done in a traditional doctors office are done on line. At least for now, this seems to include fake doctors notes.

Some have asked about the legality of fake doctors excuses. As far as I know they are perfectly legal in most cases to by and sell. Many see them as more of an ethical issue than a legal one. If you think you can "put one over" on your boss or professor with a fake doctor's excuse you buy, more power to you.


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Thursday, March 13, 2008

Environmental Responsibility Vs Shareholder Value - The Tale of Two Masters

Matthew 6:24 "No man can serve two masters. For either he will hate the one, and love the other, or else he will hold to the one and despise the other. You cannot serve both God and money." To whom do we owe our affection? Do we bless the shareholders without thought of anything more, or do we consider ethical and environmental obligations? Is there a balance that can be struck between the two?

The Wall Street Journal reported Rick Wagoner, General Motor's chairman and chief executive, announced on Sunday, January 13, 2008 that the company was purchasing an equity stake in Coskata. Coskata, a start-up company in Warrenville, Illinois, plans to make ethanol without the use of corn. G.M. would not disclose how much it paid, nor the amount of stake they took in the company. This is the first time that a car company has gone on record to invest in alternative fuel sources. Was this an act of environmental obligation? "I really don't see the logic of it," Christopher Flavin is quoted as saying. Flavin is the president of Worldwatch Institute, a Washington environmental group. He believes that G.M. should concentrate on maximizing the fuel economy of their current line. Lee Schipper, from the University of California, Berkeley, has given a stamp of approval for the project. "Ethanol made from waste materials could result in substantially less carbon per mile." He goes on to say later in the article, "Why wait for someone else to invest?"

In a similar movement, Wal-Mart recently "helped reduce the package of a popular toy. As a result, they were able to ship the product using 230 fewer containers, saving 356 barrels of oil, and 1300 trees." Constance E. Bagley writes in his book Managers and the Legal Environment, "Issues of social responsibility arise in the areas of product safety, sweatshops, and underpaid foreign workers, advertising, campaigns, antitrust violations, client conflicts of interest, managed earnings, and Internet companies." Most companies find a large gray area in the social responsibility angle. In the early 1990's, for example, Wal-Mart had made claims that products were made in America. In truth however, 12 year- old children were making the product in a Bangladesh sweat shop. Now, Wal-Mart clearly labels their products of origin, and has gone to the "Save Money, Live Better" slogan. They ease the conscience of the consumer with the promise of living better by spending less money. In recent years they have adopted social and environmental standards. In further efforts to clean-up their social policies, Wal-Mart has also begun to support local companies, such as Nectar of Life Coffee Company. Nectar of Life Coffee Company is a 100% organic and Fair Trade certified coffee roaster with roots in Spokane, Washington, and Coeur d'Alene, Idaho. Wal-Marts pushed to improve their image this decade, and it is paying off. They have increased the amount of organic products (crops produced without harmful pesticides and herbicides) offered nationwide.

Wal-Mart has also begun to build "green" stores to meet their energy needs. You can view more information on how Wal-Mart is attempting to, "provide cost effective merchandise while reducing their environmental footprint" on their web site. With G.M. now on the environmental cleansing bandwagon, you can expect more companies to find ways to compete to provide alternatives to fossil fuel, energy, and other resources. Countries around the world are shifting their focus to filling the need for alternative fuel.

Published in the New York Times on the same day, was an article by James Kanter, Europe is considering banning the imports of certain biofuel crops that lack sustainability. In countries such as Malaysia, and Indonesia mass deforestation is occurring in an effort to plant palm trees for the palm oil export. Palm oil is currently one of many crops that are being produced for use as alternatives to fossil fuel. Although Europe's current ethanol consumption is only at 1% as of 2005, they are thinking ahead to the impact of using food for fuel. "Farmers growing corn for ethanol could also be affected, because the European rules contain provisions on preserving grasslands, said Mr. Drinkwater." Matt Drinkwater is biofuels analyst at New Energy Finance in London.

With all the efforts of reducing a global impact are we really making any headway? "A flurry of studies has discredited some of the claims made by biofuel producers that the fuels help reduce greenhouse gasses by reducing fossil fuel and growing carbon-dioxide-consuming plants. Growing the crops and turning them into fuel can result in considerable environmental harm." (New York Times, January 15, 2008). So turning food into fuel is not a good idea after all.

The shareholders of General Motors may not have all agreed on the financial choice of Mr. Wagoner, but perhaps his announcement will help boost stocks as perceptions of the company's standards "change." The goal of improving stocks could be as simple as showing their care about the earth. While steering away from biofuel, Mr. Wagoner and G.M. stepped into the unknown world of ethanol made from waste. G.M.'s equity stake purchase will most likely be viewed as a very intelligent maneuver. There is a growing surge toward consumers demanding companies show their financial, and environmental responsibility. They are touted on commercials from companies such as Subaru that have 0% waste plants. McDonalds that purchased $3 Billion in materials made from recycled products. Ford Motor Company has even created a new "guilt-free" luxury vehicle, made from recycled materials, and "chrome-free" leather. It would seem only logical for companies to hedge their pocketbooks where America is buying. Clearly, America wants good to work.

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Wednesday, March 12, 2008

Cash Gifting - Ponzi Scheme or Pyramid Scheme?

Cash gifting has likely been around since the invention of currency and, in the past 7 years, has exploded as an activity that is bettering the lives of those involved in the program both financially and in their quality of life. Some however, have formed the opinion that the cash gifting activity to be a ponzi scheme or a pyramid scheme and that such a program preys on the na? and the poor and that in order to make money someone has to lose.

It is possible that there have been individuals or groups in the past that have created a cash gifting scheme or two and quite possibly have been shut down, but not what we have in place today. Our 1-up cash gifting pay plan is far from a ponzi or pyramid scheme in that everyone has the same chance at success as everyone else, where the ponzi or pyramid scheme only caters to the person at the top which is also illegal.

There is also tracking software that makes everything cheat proof and that also allows tracking of each of your team member's activity. This, of course, is quite the opposite of what Charles Ponzi, the scheme's namesake, was doing back in the 1920's. He promised a high return from an investment which turned out to be bogus and got about 40,000 people to invest $15 million altogether and only paid out to 1/3 of them. Nobody at that time had the ability to monitor the activity that was taking place until the government stepped in and ran their own investigations. But by then, it was too late. The damage was done.

For those that call cash gifting illegal or refer to it as a ponzi or pyramid scheme may be referring to an MLM and pyramid gifting. Yes that is illegal and always will be caught in due time. A simple phone call to your local attorney general will confirm this. However, the 1-up cash gifting pay plan allows everyone involved equal opportunity to for success and does not support the "fat cat at the top" type design.

By simply doing a little research you will see people who are applying themselves and reaping the rewards of this system which is not what you will find with anything ponzi or resembling something you will find in Giza.

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Tuesday, March 11, 2008

Caller ID - The Identification We've Lost

With the great Caller ID technology has come a whirlwind of good as well as evil.

This technology probably started out as a great way to track down people who had nothing better to do than to terrorize other folks over the phone, oftentimes leaving a multitude of obscene messages. But like anything else, all the good it could bring has been outweighed by an ominous cloud which has rained down another lethal dose of degradation to civility.

If you're honest, you'll admit that you've lost a piece of your own soul in the midst of this Caller ID era. How many times have you checked your Caller ID and decided that the person on the other end wasn't important enough to answer? And even if you were too busy at that moment, you never returned their call...PERIOD. Or what's even worse, you answered the phone but rudely pretended you had a bad connection.

Don't get me wrong I love technology and the advancements it has brought us. However, I'm afraid it will also bring our whole civilization to a moral end. People have chosen gadgets over good relationships. We'd rather talk into a headset or look at a photo in "real time" rather than hop into a car and look into someone's eyes.

That's why I still love small towns and if I'm lucky, I'll retire and spend my last days in some quaint little town like Pine Mountain, Georgia, or a little village tucked away in the mountains of Clayton, Georgia, where my husband and I go every year on our sabbatical. Technology does not have as much of a stranglehold on those communities...yet.


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Monday, March 10, 2008

A New Paradigm in Business Ethics is Needed

A new organizational paradigm is needed in order to avoid the all too common lapses in legal and ethical behavior which is seen in organizations in the world today. Ethics can no longer be seen by management of organizations as a side-line activity that is only meant to meet legal and regulatory guidelines, while leaders focus on the more important issues of profitability and the bottom line. Rather, ethics must be seen as a core function of every leader in every organization. To avoid pitfalls of ethical lapses which effect not only the individual, but also the team, the company, shareholders, customers, and the general public, ethics cannot be seen as less important or less urgent than any other managerial and/or leadership function.

In the past, the organization itself may not have been viewed as having direct responsibility for the ethical or unethical behavior of individual members of the organization. Unethical actions of members of the organization were seen as the sole responsibility of the individual. The individual alone could be held accountable for lapses in ethical behavior and the organization itself may not have been seen has having any further responsibility in the matter (Seeger, 2001, p. 3). However, as organizations have become more complex and interconnected, individual responsibility has proven more difficult to ascertain (p. 4). This is true whether we are discussing the responsibility of the successful launch of a new product or not reporting ethical violations. In most any organization today it would be nearly impossible to assign any one individual responsibility for the successful launch of a new product, so it is equally difficult to lay sole accountability for only one individual within an organization who may not report fraud. Was it the researcher who first thought of the idea, or the team who developed the product or the marketing manager or the sales team who is accountable for the success of the new product; or is a combination of all of them? In just the same manner, is it the person who does not report fraud to blame, or his manager who pushes for improved results with less emphasis on reporting procedures, or the legal department for not teaching the proper procedures to make reports, or the Human Resource department for not clearly explaining the rules; or is it an organizational shortcoming where all contribute to the lapses in ethical behavior?

In too many organizations "ethical issues are often positioned in opposition to the more important questions of organization profitability" (p. 4). However, in the new paradigm, shareholders cannot be seen as the only, or the most important stakeholder. Rather, all stakeholders must be seen as equally important for the organization to avoid a narrow economic focus which may lead to lapses in ethical behavior which in the end, lead to severe economic and legal consequences for the organization and its stakeholders (p. 4).

New managers and leaders must focus time and energy not only on making the organization profitable, but they must learn to help individuals in the organization recognize situations which may cause ethical dilemmas and ways in which to apply ethical behavior in a way that satisfies all stakeholders. Teaching individuals how to apply ethics when it comes to moral controversies must become a key focus of leaders in the new paradigm (p. 7). "Applied ethics focuses on norms and guidelines of professional practice, methodologies for promoting ethical decision-making, various codes of conducts and how these function to promote discussion, informal decisions, and resolve practical ethical problems (p. 7). This focus must become a new major responsibility of every manager and leader within the new organization.

Texas Instruments is an example of a company that embodies this new organizational paradigm of management. The National Academy of Engineering cites example of how Texas Instruments' leadership is focusing on ethical behavior on its on line ethics center (www.onlinethics.org). The company has created a website for employees to visit which lists hundreds of articles which have been published in corporate magazine TINews.

Examples like Texas Instruments show how a new paradigm is developing in organizations regarding the managerial focus on ethical behavior. Such focus will have beneficial effects on all stakeholders and a long term benefit to the bottom line by improving stakeholder relations and avoiding costly lapses in ethical behaviors which are damaging to the organization and its stakeholders.

References:

Seeger, M., (n.d.). Ethics and communication in organizational contexts: Moving from the fringe to the center. Retrieved July 6, 2007 from http://www.acjournal.org/holdings/vol5/iss1/special/seeger.htm

On line Ethics Center.
(http://www.onlineethics.org/CMS/workplace/workcases/it-ethics/ethics_workplace.aspx). Retrieved July 10, 2007


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Confucius, Li and Decency at Work

The challenge for many in their life at work is simply this: how to be a business person and a human being at the same time compete yet cooperate, be hard-nosed yet be ethical, keep ones nose to the grindstone yet take time to see and acknowledge others, be professional yet personal, make a profit yet not be greedy. You get the picture.

We don't have to look far to discover folks whose life at work takes the low road. Business magazines, journals, and news shows are replete with instances of individuals whose workplace demeanor is described as rude, insensitive, disrespectful, unethical, uncivil, egomaniacal and self-serving, greedy and dishonest. You might rub elbows with one or more such folks on a daily basis. And, all this despite the plethora of books, courses, seminars, workshops, policy and procedure manuals and treatises focusing on ethics and codes of conduct.

On the other hand, there are those whose lives at work are driven by their internal moral compass, a life at work guided by principles that support one to behave decently, truthfully and in integrity who take the high road even when they face major challenges, problems and difficult choices.

What supports one to change lanes and move from the low road to the high road is Li, and Confucius expounded greatly on the nature and practice of Li.

Li, what is it?

Around 500 BCE, Confucius discussed the notion of Li a spectrum of rites and rituals, i.e., a code of conduct, that focused on such things as learning, tea drinking, how to dress, mourning, governance, and interaction with humans. The underlying notion of Li was how to be respectful of nature, and one another. The term Li has several meanings some of which are: propriety, reverence, courtesy, ritual or the ideal standard of conduct.

Li is what the sage uses to find that which is appropriate; it is both the means which sets the example for others, and the end which maximizes understanding, pleasure, and the greater good. In this way, the words and behaviors one uses to show respect for another are contained within the framework of Li.

As the practice of Li was continued through centuries, one central theme began to stand out the natural tendency to be decent and kind towards ones fellow human beings.

Confucius believed that Li was the source of right action in all behavior that living life from a place of respect for all others was at the heart of living a harmonious and worthwhile life.

Li, however, does not come to ones consciousness naturally. Li has to be cultivated. One must first learn and then practice the art of being in integrity, respecting the dignity of every human being and then become committed to, and disciplined in, the practice of Li.

Li in the workplace

The practice of Li runs the gamut from smiling at a co-worker, to holding a door open for another, to serving others, to being self-responsible, to questioning practices that are unethical, corrupt, and disrespectful or demeaning of others each behavior having a conscious focus and intentionality on working toward and supporting the well-being of the workplace, and those who work there.

The challenge in todays workplace is that the practice of Li is a practice that is, for many, one of fakeness, phoniness, and convenience where more often than not, rudeness and selfishness become the guiding principles where one is ego-driven and not cognizant of others around him or her interrupting others at meetings, speaking over others, one-upping others, hijacking others experiences, needing to be the first one on and off the elevator, not holding a door for another, not saying please and thank you, and speaking ill of, or gossiping about, others. In fact, the opposite of Li is me i.e., rudeness, insensitivity, verbal abuse such as bullying, gossiping, and being disrespectful, and treating others as irrelevant.

Cultivating Li

The way to cultivate and practice Li at work begins with becoming conscious asking ones self, How am I behaving right here, right now? Am I taking an opportunity to allow my natural tendency to be decent, good and kind to arise? How am I showing up? "Am I being authentic"?

Li is not syrupy stuff. It's not fluff. Its not being effusive. Its not being fake or phony. Its not being patronizing. Li is being natural, honest, sincere, self-responsible and relaxed when we interact with another, any other.

Practicing Li does not mean we stop being firm and assertive, stop holding others accountable, stop telling the truth, stop telling the bad news, etc. Practicing Li allows us to come from a place of internal truth and integrity that supports us to be forthright, confident, courageous, and trusting that we will show up in a way that is respectful, decent and just be who we are right here and right now without the edge that we might heretofore have used to shore ourselves up.

Confucius believed that in order to truly achieve the principles of Li, the character of the true person, one must look within oneself. Confucius tells us to go inside in a sense, when he says, We know what is proper (li), especially in difficult situations, from the wisdom arising out of contemplation. regularly going into self-reflection, inner listening, and sensing our gut, to access our inner wisdom that leads us to right knowing, right understanding and right action.

Cultivating the practice of Li supports us to live our life at work from a place of self-responsibility, honesty, decency, integrity, strength, courage, and humaneness even when we feel it might be inconvenient. Each of us is born with Li. Over time, however, we have lost our sense of Li as we allowed (often unconsciously) life get in the way of being our True and Real self. Over time, our Li morphed into fake personalities, fake persona's, and masks. So, many of us became poseurs. In the process, we learned to navigate life, even life at work, with our eyes wide closed - reactive, fearful, and resistant losing our humanity and decency.

Li supports us to live life, even life at work, with our eyes wide open.

So, some questions for self-reflection are:

·Do resentment or greed drive your interactions with others?
·How might you experience fear in your workplace? How do you act when you feel fearful?
·Do you ever lie or stretch the truth?
·Do you feel white lies are OK? Do you ever lie, cheat, or steal simply because its convenient...because you can?
·Are there others you admire because of their integrity, sincerity and authenticity?
·Does you organization have a code of ethical conduct. Do you follow it? Do others?
·What one or two things can you do to cultivate and practice Li at work?
·Do you keep agreements?
·Do you admit when you are wrong? Do you apologize for mis-deeds?
·Do you have a personal code of conduct? Do you follow it?
·Do you recognize the dignity in all others?
·Would folks at work (and at home and play) characterize you as a decent human being? Would you characterize yourself as a decent human being?
·Do you ever react to others in a way that communicates to them they are "irrelevant" or "irritants"?

(c) 2008, Peter G. Vajda, Ph.D. and SpiritHeart. All rights in all media reserved.


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Sunday, March 9, 2008

The Ethical Dilemmas of Providing or Not Providing References

A very common dilemma, which most managers experience at one time or another in their career, occurs when they get a call from someone representing another company's HR department, or perhaps a hiring manager, who is calling to ask for a reference about one of our old employees or work colleagues. It is very likely that our company policy states that we can only confirm to the caller the name of the past employee, their former title and their dates of employment, and nothing more, or refer the caller to the HR department so that they can confirm the same information (Trevino and Nelson, 2005, p. 75).

After complying with the company policy by only providing this information, it isn't uncommon for the caller to ask if we couldn't pleas provide a little bit more information about the individual which would help them make their decision on whether or not to hire the individual. This may seem harmless, especially if we happen to know the worker was excellent and indeed you feel you could provide a good reference. Or, we may be tempted to raise the "red flag" and warn them to avoid the mistake and the headache that you dealt with! However, it is important to remember that "whenever you identify yourself as an employee of your company, people can infer that you are speaking on behalf of it, which is why.." (p.75) you must remember that whatever you tell the individual you are actually not speaking for yourself, but the company. "Most companies prohibit their personnel from officially supplying this type of information because of lawsuits that have resulted from employer-supplied recommendations (p. 75).

The same is true when the ex-employee asks you personally if you can provide a recommendation. If you use corporate letterhead or refer to your position in the company, then you are also representing the company and it can be interpreted that you are speaking on behalf of the company. While you may want to provide the favor, you should decline, unless you have permission from your employer. If you provide a reference as an individual and not as a representative of the company, then you must not use your title, company letterhead, your business card, or anything else that would refer to your working relationship within the company (p. 75).

Another dilemma we may face as managers is whether or not to blow the whistle on an individual within our organizations. This becomes an ethical dilemma since we must decide whether or not we are ethically bound to report information which have regarding unethical behavior of others within the company or do nothing, which may seem safer from our personal perspective. However, it is important to remember that as managers, once we have received any information regarding any unethical behavior within the organization; it is our ethical and corporate responsibility to make an effort to notify others within the corporation who may be able to take appropriate action (p. 79). If we do not, then we become partly responsible for any damages since we had information but did not act.

Several years ago, while leading a sales team, I was notified by one of our sales representatives that another of our representatives had on several occasions drank excessively dinners we sponsored for our clients. He stated that he did not want to cause problems for the individual; he felt that he had to let me know that while drinking the other representative said and did things that were not appropriate and reflected poorly on the company. Once I received the call, I found myself in a dilemma. I in fact had witnessed the other representative become loud when he drank at our business meetings. While I personally did not feel he was drinking more than others in the team, I know that if I did not do something, that I may be risking relationships with our customers, the good faith of our company, or even worse, the safety of one of my employees and or others who may be at danger because of excessive drinking. I notified our local HR representative and notified her of the situation and asked her for advice. With her support and the support of our employee assistance program we were able to address the situation in a way that was confidential to the individual concerned and in a way that protected the company and the individual.

References:

Trevino, L., and Nelson, K., (2005). Corporate social responsibility and managerial ethics. Hoboken, NJ: John Wiley and Sons, Inc.


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The Leadership Storm - The Tsunami of Ethical Dilemmas

It's not just for business anymore. Our next Enron or WorldCom could come from within government. The fact government sets many of the ethical standards for business means they must have a high standard themselves. It appears those standards are slipping.

The Ethics Resource Center's National Government Ethics Survey (NGES) shows that nearly two thirds (63%) of local government employees said they observed at least one type of misconduct during the reported year. Local government also had the highest rate of workers who witnessed misconduct but did not report it. The combined rate of state and federal workers who stated they had witnessed ethics violations was 57%. The 2007 study did not show improvement over the previous study. This should sound alarms for both government and business. Visit the web site of the Ethics Resource Center to download the the entire survey.

The greatest issues were at the local level, so here's some grassroots, common sense knowledge for you that today's society seems to be overlooking at great expense. Our society is losing its grasp on good old-fashioned values. And like society, business follows suit. Gone are the days where a man's handshake was his promise, his word his commitment. But not gone forever. If you want to learn some methods to pump values back into your organization, and gain confidence back from your customers, you'll want to stress these conditions during all training. Reinforce and remind them on a regular basis:

The flow of information from top management

Top management's ability to keep promises and commitments

The flow of information from supervisors to employees

A supervisor's ability to keep promises and commitments

Increase confidence that coworkers will keep promises and commitments

Use transparent means to reward employees, nothing unquestionable

There is an upward trend of pressure to compromise standards, where situations invite wrongdoing and/or employees' personal values conflict with the values espoused at work. This increasing pressure builds like the wave of a tsunami until it reaches critical mass. Self interest, lying, abusive behavior and internet abuse top the list for misconduct in the workplace within government.

Businesses run the risk of loosing customer and employee trust that is essential for businesses to maintain. Government agencies strongly risk loosing the confidence and trust of the public. In both sectors, eroded trust hinders organizational effectiveness.


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Saturday, March 8, 2008

From Bangor To Bangalore - How Going Global Means Growing Nobel

What does Bangor, Maine have to do with Bangalore, India? Maybe nothing. Maybe a lot.

Recently, while in my Bangor, ME office I asked a fellow business person why they didn't include a fairly common Internet solution offered by almost everyone in the current business environment. The answer was striking. He said, "Because that's the way we do things in Maine." As if to say, Maine business held a special exemption, due to its regional uniqueness, from providing customers with basic services that most other businesses offer as a matter of course.

As someone born and raised in the state of Maine, I was frankly shocked. The Internet, CNN, fiber optic cable and international cell phone coverage, to name just a few technologies, flattens not only our experience of the world, but the experience of our customers. When people talk about a "flattened" world what is meant is a world that is now much more transparent. Anyone or anything can be Googled. Any process or technology is available on line for all to see whether in Bangor or Bangalore. In short, everything is visible to everyone.

Since transparency is the rule of the day, business is impacted in new ways. Not only is process visible, but most processes become commoditized. In other words, few will find any particular edge in the platform or process itself. In my business of pensions and 401K plans, as just one example, there is almost no difference in platform from one 401K provider to the next. The only difference now is me. Globalization creates a transparency and commoditization that creates very little differentiation in basic products and services.

This means business needs to rethink its approach. The approach that matters in this new environment is refocusing on "how" we do business. In other words, if everyone now sees what everyone else is doing and can offer what everyone else offers, then the distinguishing feature of our business is the "how" of our particular approach. Character is going to count again. Honesty, integrity and placing the customers needs above our own is what will rule this new global day.

There is no longer the "Bangor way of doing things" or the "Bangalore way of doing things." Now, there is one very transparent way of doing things that the whole world can see. What does Bangor have to do with Bangalore? A lot! The new standard of business is a global standard. No one is safe in their small, parochial world. Business cannot be accomplished well if uninformed, much less if delivered in a sloppy or unprofessional way, all in the name of "regional style." Further, business people will no longer be their own arbiter and judge as to whether or not they are uninformed or unprofessional. The standard will be the definition adopted by their customers as those customers become shaped by the global standards that are delivered to each customer as they sit looking at their laptop. Bangor and Bangalore are very close indeed.


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Top Ten Reasons to Live a Life of Integrity

You might think that it's a no-brainer why one should live an honest life. But it's apparent to me that a life of integrity is the exception rather than the rule. How many people do you know who are honest all the time?

We could make a case about the morality and the "rightness" of living honestly. Religious leaders have been advocating this for thousands of years. It's doubtful that even they could provide a true model of integrity.

I believe in the moral and ethical value of integrity but I also think there are very practical and worthwhile reasons for living an impeccable life. Here are ten:

1. Trust. In order to be successful in business or hold a responsible job, a person must have a reputation of honesty. Resources are not entrusted to people who have proven themselves as untrustworthy.

2. Good Health. I have no research to support this, but I'd be willing to bet that people who tell the truth are healthier. They have less concern, less stress and feel better about themselves. This has to translate into better health.

3. Pride. I've yet to meet a liar who has any real pride in themselves. Any good leadership training will stress the importance and value of having pride in what you do and who you are. If your reputation is grounded in deception, your opinion of yourself is poor indeed. Being honest just plain feels good.

4. Peace of Mind. If you cheat on your income taxes, you may get away with it, but you'll probably always worry that you'll get audited and face fines, extra charges and even jail as a result. Your reputation would also be tarnished. When you deal honestly, you have peace of mind. It's impossible to worry and be happy at the same time.

5. Remembering. It's been said that no one has a good enough memory to be a good liar. When you don't tell the truth, you have to INVENT it. When you do, you'll often be asked to recall your rendition of the truth, and you may not be able to do so because you forgot what you said. You KNOW the truth, but you can't remember your version of it. Very embarrassing. Besides, it's hard work to continually come up with false stories.

6. Good Sleep. If you lie-unless you have no conscience at all-you'll often lose sleep because of your fears of being found out. Your worry and your guilt will keep you awake. A good night's sleep is one of life's many pleasures and honest people sleep better.

7. Confidence. Many people have excellent "bull" detectors. They know-at least at some level-when you're being fake. If telling lies is your modus operandi, you know that these people will often see though your fa?e. There's no way to have real confidence in oneself when you're walking on "bull".

8. Good Relationships. Relationships are the jewels of our lives. Some would argue that relationships ARE our lives. And breeches in trust are the death knell of relationships. When trust is gone, there is no foundation upon which to build. Relationships lacking in trust seem hollow and shallow. They lack joy.

9. Legal Problems. We don't have to look very far to see the legal trouble people get themselves into from dishonesty. Lying in a court of law or to an officer of the law is literally AGAINST the law. Conversely, if you have no secrets, you can rest easy and its hard for anyone to blackmail you.

10. It Doesn't Work. All too often our deceptions and duplicity are discovered. In the information age in which we live, it's even more likely that lies will sooner or later be seen for what they are. Dishonesty is just plain inefficient.

The right thing to do is seldom the easy thing to do. But it's worth it.


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Friday, March 7, 2008

At a Crossroads with Management - A Discussion of Ethics

There is a lot of information pertaining to discussion of ethics around us, and ethics are a part and parcel of our day to day life.

While it may be a truism to say that most of us would like to either be independently wealthy, work for ourselves or building our own brand of business, the reality of the situation is that few of us, statistically speaking, will ever achieve that dream.

This leaves us with the necessity of playing the office politics game, getting on the good side of management, and trying not to rock the boat too much. Of course, there may come a time when you are presented with an ethical dilemma when it comes to your relationship with your boss. There may come a time when your boss asks you to do something that is slightly off the path, ethically and morally speaking. And at that time, you will have to make a choice: go with the flow and do as they say, breaking your own code of ethics in the process, or go against the grain, stand up for yourself and your beliefs, and risk losing favor with management, or even risk losing your job.

Of course, much of the decision making power will have to do with the specific situation involved. If you boss asks you to do something clearly illegal, which could cost you much more than your job, the choice will be a lot easier than something on a smaller, subtler scale. Say for instance your boss wants you to begin a surveillance program, keeping track of everyone¡¯s internet activity in the office. You may feel this is an invasion of privacy, even if you are not breaking any laws. Your friends and coworkers in the office would lose respect for you if they found out about your surveillance, and it may even be a case where if you won¡¯t do it, someone else will. This is where you will have to decide where and what you want to stand for. If you agree to the task, you might be breaking your personal code of ethics; if you deny it, you may risk losing your job or, more likely, be passed over for that next promotion.

Situations like the one described above are never easy. There are many considerations to take under advisement, and it would behoove anyone in such a situation to consult with their family and the people they trust for counsel before proceeding. In the end, of course, you must make the decision that feels right to you. If you feel, for instance, like perusing the internet activity of that girl in accounting is a light transgression, it may be easy to decide to go with the flow in this instance. On the other hand, if you feel strongly that management has no right to invade their employees privacy in this way, it may be a situation where it is worth the penalty to stand up for your beliefs.

With many ethical considerations, there are no clear cut answers. There is only your personal set of beliefs, staged against another¡¯s. These situations can be the most difficult to conquer, as they may come down to nothing more than personal disagreements. Neither of you may have an objective stance of right or wrong, but both of you may feel just as strongly about your opinion.

With the ending of this article on discussion of Ethics, how much do you stand to gain with this article? It will fall to you to make the decision you can live with.


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Unethical Behavior In The Workplace

There is absolutely no room for unethical behavior in the professional world. This statement is exceptionally important for publicly traded companies and their accounting practices. From financial officers to accountants to auditors, and so on, there is no greater impact on stakeholders when these persons perform unethically.

Unfortunately, there are multiple reasons for which one might consider acting unethically when preparing financial information. The most obvious reason may be quite simply, for self-interest-greed.

An accountant may embezzle funds from his or her employer for financial gain. Or perhaps the CFO of a publicly traded corporation may prepare financial statements to appear as though the company is performing much better than it actually is, because he or she wants their stock portfolio to increase.

Another example for why unethical behavior might exist is from corporate pressure. An accountant may feel pressured from his or her client to report false information. Or maybe a CFO is experiencing demand for improvements from the board of directors, the company's president, owners, or stockholders; or he or she may be in fear of losing their job.

An accountant may decide to work for a company even though a conflict of interest may exist. If the accountant is owed money or has a significant stake in a firm, he or she may not be the ideal individual to prepare certain companies' financial statements.

Finally, and perhaps the most common form of unethical behavior, is the failure for an accountant to conduct an in-depth analysis when preparing and revising financial information. There are many individuals who prefer to take short-cuts in life; and frankly, this simply is not acceptable when expected to perform in a professional manor.

There have been many laws enacted, on both state and national levels, intended on preventing one from conducting unethical accounting practices. In addition to these laws, have been many recommendations to implement changes geared towards the improvement of professional ethics.

Two such individuals, who have spent much time working on this topic, are: Jane B. Romal and Arlene M. Hibschweiler. According to the June 2004 CPA Journal, Romal and Hibschweiler recommended that "states should be encouraged to mandate ethics training as part of CPE requirements".

This notion forced the Texas State Board of Public Accountancy (TSBPA) to begin a more intense training regimen for accounting educators, CPAs, and accounting students. This included having every licensee taking four-hour ethics courses on the board's Rules of Professional Conduct every two years. The Arizona State Board of Accountancy requires every Arizona CPA to take an ethics class for licensing renewal.

In addition to state level mandates, is the Sarbanes-Oxley Act. Section 406 of the Sarbanes-Oxley Act requires that publicly traded companies disclose their code of ethics for senior financial officers. The Act was designed to promote honest and ethical conduct; full and accurate disclosure in periodic reports; and compliance with applicable government rules and regulations.

Even with the actions of Romal and Hibschweiler, the TSBPA, and the Sarbanes-Oxley Act; no one can regulate another's integrity. Some individuals, regardless of their profession, will always look for some form of personal gain, even if it means conducting themselves in an unethical manner. This article is designed to help educate people on unethical accounting practices, why they occur, and how we as a nation can promote ethical behavior.


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Thursday, March 6, 2008

Unmasking the Business Phantom Part VI - The Path of a Broken Arrow

It's a well noted remarks that's the shortest way to deal with the problem is to get thought it, and in its simplest form one must know were to aim an arrow. A timing with dedicated resources to be delivered at the most precise and control manner, sound simple in its trivial extend on how will look at it. But reality offer the most of what a situation can be calculate and deliver in order to justify the extent of possibilities, in such point that certainty with level of accuracy will not only relies on the hand of an archers. The path of a broken arrow is so elusive, even the possibilities are well presented and accepted for it to serve as reference guide, we are still in the inevitable state of making mistake and failure.

To put a reference comparison on how a business can be interpret in such way that it emulate the concept of a broken arrow, in a dynamic form, and not meant to be specific for it be applied. It takes a great amount of momentum and resources to drive an arrow to its target, and once it hit its target, its a anticipated battle to dwell on one of the law of natures, the strong point and the weak point to maneuver directly and indirectly to dominate one another.

The foundation has been lay down prior to the battle, and the tip of the arrow has been sharpen to a profound level, its body has been aligned to a precise straight pattern, and its edge that serve as navigational wings has been crafted to perfection, making sure that what the archer has targeted can be deliver with level of precision.

The archer's eye is soaring like an eagle, finding its target from a far distance which has been viewed clearly with no doubt what the marks man use to interpret as Bulls-eye. Inevitable factor has been well decoded to such extend that there are no rooms for error at the theoretical level, everything are well set and presented in manner that is said to be go for an aim.

The archer is preparing to aim his target, and the condition is well suited and timing by large percentage is in his hand. The art of archery is exercised at the most of its intent; it's the very same art that determine the result to where an arrow will hit its target. It is the direct interpretation which is coherent for an art of this kind to provide such anticipated results. No less and no doubt this is truly an art that serve its meaning, philosophy and existence that worth to emulate and to adapt to a business emerging from competition.

The archer is interpreting the art into tangible state of motion equal to an action, and he is beginning to bend the bow to such extend with assurance that it has enough force with level of tolerance to deliver the arrow to its target. The opposing force has been created in the process, where the bow resist and trying to maintain a default stage, the string serve as the mediator to that action, but it's the archer spirit that perceive in the process which determine the outcome, based on power and precision.

Timing is a matter of sense that require one self to be in the right place at the right time to aim and release the arrow, from then onward it is a maneuver with precise intent with force that break the boundaries of ones opposing force of gravities. It must maintain its momentum while making its way to its destination, and its just portion in such percentage of force and power and what comes to play is the remaining force to penetrate the target. Such force that can make or break it self or its target, to such extend that we have a broken arrow as a result of opposing force that collide to one another. One that carries the kinetic potential and the other with striking force that travelled with its arsenal of the toughness and sharpest steel. An event that has been presented in a flash of motion that is so fast where one will be unable to comprehend the underlying events, and only the end process will presented in our naked eye. We see such result either ways amongst our expectation, an arrow that hit its target, one that miss its target, and a broken arrow in a rare case. As to what extend of force does it create a broken arrow, to a midst of my curious thinking and trying to adapt the same concept in a business perspective it is sometimes lead me to un endless questions and inquiries that needed some answer.

The speed and swift action are sometimes or in the norm stages of our shared commonality are mostly interpreted as invincible. And he who see's the invincible can do the impossible to some extent, this notion lead us to deals with things that are outside the box of our normal approach for making decision. Approaches that are self evolve from the emerging paradigm of such perspective collaboration of a creative thinking from individuals, groups, organization or entities at its general terms.

Broken arrow is a result of an excessive force with lock of understanding on the natures of its target, these one can say's that you cannot solve the problem at the very same level it was created. It is the notion we must understanding what will happen if we have the same character and properties of the same kind for the two opposing paradigm or situation regardless who is the stationary target and the arrow it self.

One must know and understand who hold the most of the situation for them to equate the strong from the weak from the superior and inferior. To validated their decision making in reference from their current standpoint as defensive or offensive side. It is very important for ones self to understand where they are and where they are going, a reference point from where we should start. It is from that standpoint that we develop our action and decision making and applied it to a tangible motion of maneuver whether direct or indirect. This create a concept of formal decision making for any possible situation that will be calculated on hand to justify its veracity , those equate accuracy if it is combine by managing time and resources as a whole. This total combine force is just the arrow in its metaphysical stage.

Looking for the right archer.... To drive and navigate the arrow to its target requires such level of expertise, fashion and dedication to what he is doing. They come in many forms where age, origin, education, social status is merely trivial as reference guide in finding the them, its seems that there is no precise pattern for it, it's just the way they are "an archer". The only time one can tell is when they hit the target, one, twice, trice in the same spot, a marksman on their field at the time all the require factor are in existence and return to norm of who they are in the absence of such factor that makes an archer "a target to hit" an archer will always be an archer and marksman will always be marksman.

Anatomy of an Archer in the views of an observer

To what extend one can consider him self as an observer if an apple on his head become the target in such distance with underlying doubt or in the shadows of a doubt you give a level of trust on the credential of the archer. Are you playing as an observers or parts of system?

For the time being I will leave this inquires un answered as someone presented his self as a business phantom, whose currently the man standing still with the apple in his head while the archer is making his aim to its target, and I, I will be watching in close proximities among them, in such way am not going to loose the essence of a direct and indirect result of an event. In my assumption maybe not a broken for this time, but it's an aim to a target with no guarantees. If the archer miss its target and the arrow hit the business phantom, my search will be prematurely ended if he's truly the business phantom. If the archer hits the apple, a greater chance will be in my hand to authenticate the credential of the business phantom, it will be 1 step forward to my search.


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Wednesday, March 5, 2008

Personal Business Ethics in the Pursuit of Professional Growth

As an Internet consultant and marketing trainer affiliated with multiple schools and professional associations, I have observed that there are two key contributors to success for business people. The same factors apply to any type of sales or consulting, whether related to product markets (weight loss, nutrition, auto parts, Websites, etc.) or services (health care, mechanics, personal trainers, search engine optimization, etc.) The first contributor is indisputably ethics, and a solid sense of above-board business practices. The second is continued, professional growth in the pursuit of expanding your knowledge base.

If your career involves consulting, advising, or otherwise providing solutions to other people in any capacity, whether it is to consumers who seek your expertise, or peers within your own specialty who stand to gain something from the information you can impart upon them, your personal sense of ethics is a premier point by which others will judge you. In fact, your entire professional reputation that takes years to build can be irreparably (or significantly) damaged by a single instance of poor business practices. If you have ever met people who are more preoccupied with their own achievements than with empowering others to succeed, their personal standards (ethics) become apparent when they downplay the achievements of others. Those same people feel entitled to personal recognition and typically have an insecure need to be the glorified center of attention, and they feel robbed or threatened by any recognition earned by others. Consequently, their own need for a personal spotlight governs their actions, creates an agenda, and affects their ethics.

You have undoubtedly crossed paths with people who are motivated like that, and at the mention of their names, their reputation is apparent with a knowing roll-of-the-eyes or casual comment such as, "Well, you know how they are," with no further explanation necessary. Those types of people play office politics well and make fair-weather friends, so long as their purpose is served. Sometimes the materialism and shallow behavior of such people can confuse a new employee or team member, creating the impression that flashy one-upsmanship is what it takes to become a leader, but never forget the old expression that "the bigger they are, the harder they fall."

In actuality, most truly successful, self-actualized leaders are unremarkably non-showy. They are comfortable with themselves, and do not need cheers from a crowd to feel like they're somebody. They have a live-and-let live outlook, but will unselfishly assist others to empower others to enjoy success, rather than try to suppress others in an attempt to remain the center of attention. When you dig into what makes successful people respectable and admired rather than thought of as self-righteous, superficial, and arrogant, you will commonly find a fundamental difference in ethical motivation.

How do your ethics affect your success in your profession?

Ethics spans beyond honesty. Integrity involves the moral courage to adhere to high standards interdepartmentally within a company, and inter-corporately between businesses within the same industry. Take, for example, the competitive nature of retail sales. Most consumers have dealt with merchants that are mercenary against competing vendors at one point or another. If it has happened to you, then you know the bad impression it leaves when a salesperson in one store belittles or degrades what they perceive as the competition. Conversely, consumers tend to appreciate and value a vendor who is comfortable enough to refer business elsewhere. If a merchant is truly interested in the well being of his or her clients, he/she helps clients expand their horizons versus acting in a self-protective, self-interested way by trying to shield clients from any cross-market exposure.

In one such case, a clerk at a local computer store referred me to a computer mega-store to get a better selection for one particular part that I had been trying to find, knowing that the larger store had more selection. In doing so, the clerk was looking out for my best interests instead of his own profits, and he forever after earned my business. In the end, the consumer remembers the helpfulness of the referral and will typically become a repeat customer of the referring merchant. I have sent many friends and associates to that small computer store, knowing they will be treated fairly.

There is simply no room for back-biting or subversive behavior in a successful career path, whether it is inside an organizational environment or between companies. To ignore this guidance is to earn the distrust of co-workers, competitors, upper management, and, yes, your customers as well. A simple downplay of your other associates or competitors is quickly seen for what it is: thinking of yourself instead of your client. Instead, focus on how your product or service can add value to your customers' quality of life, rather than how someone else's product or service is unnecessary.

Think about the ongoing presidential candidate political debates, for example, and how candidates within each party are often less intent on critical issues, and more intent on degrading the other candidates within their own party. How does it affect the way you think of them? They are each trying to be the best, be the winner, be the favorite, and win the vote, so much so that they lose sight of the issues. Would politics be more respectable if personal agendas gave way to focusing on the well being of the voters and the country? In the mind of the politician, the risk of embracing another candidate could mean losing the vote, but in the minds of the voters a tactful, refocusing reply to the mud slinging (rather than a counter-attack) would score a more favorable public opinion. Therefore, although they've succeeded to get on stage or behind the podium, politicians have the general reputation of being big talkers and small thinkers. "Politics" has a bad name. Do you know any politicians in your company? Is that how you want people to think of you in your business?

Whether you are a sales person or a consultant, remember the significance that 1) referring business and 2) keeping the customer central to your focus will yield better results than "bashing" other businesses within your same profession. In the end those who spew negativity towards specific people or companies are seen as small-minded and insecure. It's gossip. It's small. And it is so transparently evident to those who are witness to it. Do not fall into that trap!

When a potential customer approaches you with a question, of course you want to make the sale. That's natural. And if you are ethical, you ought to strongly believe in (and personally endorse) the product or service you are selling. The sales term, "become a product of your product," means that you believe in what you sell and therefore use it yourself. Sometimes a customer's question can force you to compare or defend your own product or service to explain how it stands up to your competition's. You have a choice on how to do so, and the way you decide to answer the question will reveal your personal ethics.

Example:

Suppose the question you are asked is "How does your product compare to XYZ's similar product?"

There are a number of potential responses, but only two basic paths to take in your reply.

1) XYZ's product is a great product, too! It has features A, B, and C and I've heard a lot of customers who are happy with it. In comparison, ours also does D, E, and F. The price difference isn't appreciable, but tell me, how will you be using the product? Let's figure out which one best fits your needs.

or

2) Oh, you don't need XYZ's product. It does A, B, and C, but it doesn't do D, E, and F like ours does. Plus theirs costs a little more. If you want that kind of a product, I have just the right one for you.

Notice the emphasis in number one is on the customer, not personal gain for the salesperson.

In order to maintain your profitable edge over your competition, one of the best things any professional can do is to stay abreast of the latest marketplace trends, technology, and so forth. How would either sales person (in number 1 or number 2 above) be able to answer the question comparing the two products unless they were educated on the different options available in the marketplace? Some career fields actually force this concept by mandating continuing education credits (sometimes called CECs) within their professions, usually in those disciplines that are fast-changing and that have significant impact on consumers: medical, legal, real estate, insurance, etc.

Whether or not your specialty requires CECs, as an ethical business person, you owe it to your customers, patrons, or clients to become the best you can be at what you do. Read relevant information, attend trainings and certification events whenever possible to stay in tune with the latest developments in your field, listen and watch pre-recorded presentations that expand your horizons, and participate in seminars or Webinars to enhance your professional knowledge. Acquiring the knowledge to become more successful in your field is predicated on having the right attitude to pursue that knowledge.

Anyone who would advise you not to enhance your professional growth and development is advocating ignorance, probably working under some hidden personal agenda, and certainly not looking out for your best interests. Take ownership of your success and be the best at what you do. In the process, remember that your moral courage and character are not defined by what you do while people are watching you; they are defined by what you do when no one is looking.

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