Business Ethics in the World of Online Business
Does your moral compass join you on sales calls and accompany you to business meetings? Of course it does. It goes with you to the gym, and you bring it with you when you go on vacation, so why wouldn’t you apply the same set of moral principles you use in everyday life at work?
Maybe it’s because a business’s goal is to make money, and money does things to people, but the harsh reality is that some people don’t operate under the same moral code in their businesses that they do IRL. And that’s unfortunate.
Ethics in business are important. In fact, they’re more than important—they’re business-critical. (And stay tuned, we will be calling out a specific industry that’s really missing the mark.) Ethics doesn’t have to be a complicated rabbit hole of asking yourself philosophical questions. Here are five relatively straightforward ways to practice ethical business.
5 Ways to Keep your Business Ethical
Avoid deceptive pricing. “Deceptive” is subjective.
Thankfully, the FTC offers this guide to protect consumers and help businesses avoid deceptive pricing practices.
Bottomline: Don’t try to pull the wool over anyone’s eyes.
No shady payment practices. If you’re offering a legit product or service with legit value and benefits, you do not need to be tricky to get someone to pay you for said product/service. Contracts should be sent before or alongside the first invoice (not after you’re paid). Don’t try to get people to pay you over the phone or Zoom.
Use lawyer-drafted contracts. For the most part, no one is going to know the ins and outs of how to draft contracts like a trained lawyer. Choosing to buy a contract from a non-lawyer instead of a lawyer is like choosing to buy fresh fish from a salesman instead of fisherman. Sure, it may still be OK to eat, but why take that chance?
Don’t spam people. The CAN-SPAM Act isn’t a suggestion, it’s an actual law. Following the rules outlined in the CAN-SPAM Act is the right thing to do, and if that’s not convincing enough, the penalties for breaking the law are extreme.
Don’t promise what you can’t deliver. There’s no way to force businesses to make ethical claims about their products and services, so we’re all just counting on each other to be honest. But keep this in mind: If you’re overpromising and underdelivering, your business won’t last. Deception isn’t an ethical business strategy; it’s going for short-term gains over long-term wins.
The Thing About the Coaching Industry …
This might get awkward, but we’re going there anyway.
The coaching industry is unregulated, and, sadly, many people operating within it are not following ethical business practices (e.g., promising filet mignon and then serving a bologna sandwich). If you’re looking to hire a business or life coach, look for red flags like promising a certain amount of income or sales per month, not wanting to use a contract, and asking for money over the phone.
Unethical coaches give the ethical ones a bad name, and there are some really great ones out there. Here are some steps you can take to find a great one:
Get a referral from someone you trust.
Vet the coach by doing your own research (look for social proof).
Consider the person’s qualifications and whether this experience is a good fit for your needs.
Take a good hard look at the promises the coach is making. Is anything fishy? (See red flags above.)
Weigh the costs and calculate ROI. To the best of your ability, calculate how much you believe your return on investment will be. Ask yourself, does this pricing seem fair? It pays to do your research!
Just Do the Right Thing
Ethics conversations don’t have to be nebulous and philosophical. There are some concrete and simple ways to practice good business ethics, and the fact that you’re here right now, reading a blog about business ethics is a great sign. Remember that good ‘ole Golden Rule? Treat others how you’d like to be treated? That’s the perfect place to start.
Ready for more? Check out the contract templates, free resources, and digital resources for entrepreneurs on www.lawyerkelli.com.