How Being Ethical Can Help Your Business Make More Money
I meet so many amazing entrepreneurs, freelancers and leaders and so many have the same question for me – what IS ethical business and what does it mean for my business?
The great news is that the vast majority of the people that ask me that question are already on their way to being an ethical business. Today I want to talk a little about what ethical business is and why it’s great for your businesses bottom line (not just it’s reputation!)
So, what is ethical business?
Ethical business often gets confused with sustainable business. While the two can often go hand in hand (and I would advocate that they do), ethical business is about making ethical decisions. Ethical business is about leading with your values – focusing on things such as respect, fairness, support & integrity. This can be demonstrated through the way you interact with your customers and always striving to achieve your absolute best for them, while also being fair.
Your integrity as a company is important. Paying your staff the National Living Wage, transparency for your staff and customers, your company culture and working with other businesses with the same mindset/values are all examples of ethical business.
Why does it matter?
Firstly, I truly hope that everyone aspires to be ethical in business – the fair treatment of others I believe is the duty of a business.
Consumers are more aware than ever and companies who are ethical in their practice often gain popularity and most importantly, longevity with their target audience. We’ve all seen the news reports and articles being shared on social media of companies with terrible ethical practice. Think back to companies that were caught underpaying their staff, subjecting them to awful working conditions and even the carbon emissions scandal that thrust many car manufacturers into the spotlight.
Gone are the days of consumer ignorance – the internet has allowed customers to have a huge impact on businesses through the use of online reviews. Google reviews, Facebook reviews, TripAdvisor, Uber, Amazon; all of these platforms are examples of companies that give the consumer a voice.
We’ve seen negative reviews and negative publicity crumble corporations, maul manufacturers and obliterate online stores. In many cases this has cost these companies millions. However, what is the cost of the damage to their reputation? That is much harder to estimate.
While holding a workshop yesterday evening, an attendee told me of how impressed she had been with MoveGB. She had been injured and had accidentally forgotten to freeze her account which resulted in her being charged. After contacting MoveGB and explaining the situation they gave her time for free to compensate for the error.
Now, this was not the fault of MoveGB, but they operated fairly and now this woman is a raving fan. Some businesses would have simply said ‘hard luck’. Ethically, I believe this was the right thing to do. However, from a business sense this has now created a raving fan who is still a customer and will likely stay that way (and I am now referencing them in this blog post!)
Ethical businesses are rewarded with loyalty by their staff and their customers. They retain their staff and they keep their customers coming back for more. Both of these are essential in business! What’s more, studies have shown that referrals from someone you trust will make you 4 times more likely to purchase and these people are worth 16% higher lifetime value.
If you’re looking for guidance on turning your business into an ethical one, click the link in my bio and book yourself a FREE 15 minute clarity call.
This can be a huge shift in your personal life as well as your business – do something to be proud of and put your ethics before anything else. I promise, you will be better off for it.