Touch times have made some business owners make unethical business decisions. Learn more about these decisions and find out how they influence your business.
Why It’s Important
Regardless of the type of business you run 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
• Then we will list some steps that will help you make conscious choices which will take your business to the next level
Types of Unethical Business Decisions
Some business leaders forget that results start from the top and work their way down. 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.
Here are some examples of other unethical business decisions:
Offering Quality First and Then Cutting Back
Many companies will offer quality for the duration of product launches to build 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. They are developed as a way to get ahead but all they really do is hurt the reputation of the company and damage your long term customer relationships.
Sound and Ethical Business Decisions
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?
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.
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.
Here is a plan to make sure you are making ethical business decisions that will serve your business well into the future.
Identify the Issue
Take the time to identify the issue that must be solved. Understanding the issue is the first step toward making a sound business decision.
- Sit down and determine why your competitors are ahead of you
- Try to get the big picture of the situation
- Determine what the other business is doing, how they are doing it, and what they are not offering that you can
Identify Different Approaches
- Come up with a few different approaches and write them down.
- Identify the benefits and drawbacks of each approach
- Determine how it will serve your customer and help your staff
- Identify the opportunity that each approach presents
- Figure out 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.
Ask yourself questions like these and then set the project aside for a short time. When you return to it you should be able to choose the best approach.
- 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?
Having everyone’s best interests in mind and knowing how to make sound business decisions is what will provide your business with longevity. This genuine concern is what will make you stand out will allow your business to profit for many years to come.