If you run an online business or a brick and mortar business on the street it is very important to the life of your business to be conscious about the choices you make with your business. There are many business owners who make unethical decisions for the purpose of reducing costs without thinking about the welfare of their customers, staff, and the well being of the planet.
Business owners may make these decisions in an effort to gain an edge over larger competitors when in reality the decisions are hurting their business. If you want to create a conscious business for success beyond success then you must know how to make decisions that will influence the well being of your business. First let’s take a look at some of the decisions some businesses make that are a detriment and then we will list some steps that will help you make conscious choices which will take your business to the next level.
1Types of Unethical Business Decisions
One of the first things that a few businesses forget is that staff productivity and morale start from the top. The person leading the organization must be focused, results-oriented and encourage a sense of teamwork among the staff. Some business leaders forget that results start from the top and work their way down and they think the company will get ahead by being demanding of their workers and treating them like robots. In reality, this results in high staff turnover and the company never moves forward since they are always breaking in new staff members. That said other unethical business decisions include:
- Offering Quality First and Then Cutting Back: Many companies will offer quality for the duration of product launches and then start building a reputation on quality. Once customers are drawn to the product or service the company gradually cuts back on the quality in an effort to cut costs and increase profits. What happens is the customer starts to notice the decline in quality and so they begin to look elsewhere.
- Associating a Product Name with an Established Brand: To compete with larger companies some businesses will try to create a brand name which is very close to the well known brand name so people will mistakenly think it is the well known brand they are purchasing. The reality is the quality is lower and the company is attempting to profit from a brand name that is almost identical to the established brand. This is considered a deceptive practice to pass off goods that are associated with another brand.
- Providing False Information About the Competitor: To try and get ahead of the competition, some businesses will make false or misleading statements when they are comparing their product or service to a potential competitor. This is not only illegal but it also ends up breaking the trust of the consumer if they research and compare and find the information is false.
- Using Inflated Information to Sell Products or Services: In an effort to compete with larger companies some businesses will inflate the information when they promote their product or service. This makes the consumer feel like they are getting more bang for the buck than if they chose to make a purchase from the competitor. Once the customer realizes the deal was really not that great, all of your credibility goes out the window and they will inevitably choose your competitor over you in the future.
These are only a few examples of unethical business decisions which are formulated in an effort to get ahead and then all they do is hurt the reputation of the company which produces just the opposite of the intended result. Most business decisions which are driven by the dollar sign end up backfiring because they damage the consumer relationship and place the company in a deceptive light, especially when it comes to lack of regard for the environment, consumer, and staff.
So what are some of the ways that you can make healthy and well-calculated business decisions that will help your company to keep moving forward?
2Sound and Ethical Business Decisions
First and foremost, you must be well aware of some of the other deceptive practices that businesses use in an effort to beat the competition and then do just the opposite. If your customers know they can always rely on quality for their money they will keep returning time and again and bring their friends. If you remain consistent with your efforts and provide what your customers need you will turn a profit. End of story.
This may seem too simple to believe when you see other businesses bend themselves into pretzels trying to stay ahead but it is because the answer is simple. It is just that other businesses do not see it and think they have to use deceptive practices to try and beat the competition. There is a lot to be said for being genuine when you run a business; however, some business owners fail to understand this and end up hurting their sales instead of growing them. Other things you can do to make good business decisions:
- Identify the Issue: Take the time to identify the issue that must be solved. If your competition is ahead of you sit down and determine why they seem to be ahead of you. Try to get the big picture of the situation and determine what the other business is doing, how they are doing it, and what they are not offering that you can. Understanding the issue is the first step toward making a sound business decision.
- Identify Different Approaches: Come up with a few different approaches and write them down if you have to so you can see them in front of you. Identify the benefits and drawbacks of each approach as well as how it will serve your customer and help your staff. Also, identify the opportunity that each approach presents and some of the threats you may face from the competition.
- Making the Decision: Eliminate the low ranking approaches and then take a look at the higher ranking ones to determine if the approach will produce the outcome you are seeking? Are you comfortable with it? Will it take the company in the direction you want to go? How will it benefit the consumer? What are the results over the long term? Ask yourself questions like these and then set the project aside. When you return to it you should be able to choose the best approach. Put your approach into action.
