The rapid development in modern technology ranging from Artificial Intelligence to advanced machine learning algorithms the race to be the leading innovator becomes a necessity for profit. However, major corporations face an even bigger ethical dilemma: do these innovations enable room for abuse?
A poll found that only 53% of Americans believe that large United States companies are very or somewhat just. This has been the lowest percentage in polling since the polls started in 2019. Even worse, only 35% of Americans think that the current form of capitalism is effective for the average working American. Over time, the erosion of public trust from big tech companies has only accelerated. Americans are convinced that most companies only hold their best interest for their shareholders and investors. This lack of trust seems to be consistent across all demographics in the United States leading the majority of working class people to believe that current capitalism is failing to work. Yet, Americans do believe that businesses can be a driving force for meaningful change and this is where the underlying importance of ethics in business lies. If you’re a current business owner or a prospective one, here is the importance of business ethics and why it must be incorporated into everyday business practice.
As a business owner, you have responsible ethics you must give back to society. Business ethics are the underlying principles that guide your decisions when making important choices to grow your business. As a leader, you’ll find that business ethics is a rather subjective matter, there are different interpretations of what is classified as ethical. Most times, you’ll find yourself navigating a murky gray area, where what is right and wrong is blurred between the lines. Oftentimes, your bias and perspective can intervene in what you see as an ethical decision. This makes characteristics like being transparent, considering impacts on employers and society, and inviting feedback from people around you vital.
Though it can be challenging, ethical conduct within your work benefits both your company and addresses historic disparities in the long term. An effective way to do this is by prioritizing a framework called the triple bottomline. The triple bottomline is a sustainability framework that ensures companies should be measured on social issues, environmental goals, and corporate profits. Advocates of the TBL framework argue that instead of one bottom line there should be three: people, profit, and the planet.
This framework has to be planned with a long-term vision. This is all part of a scheme to become a more ethical leader. If you haven’t implemented these things in past business models or plans, that’s okay! Ethical leaders learn and listen from the past and make sure to implement corrections into the future. Overall a business’s fundamental principle goes back to serving people. Americans rank paying a fair, living wage as the first concern when talking about employment. This was a general consensus among numerous demographics showing that all Americans stand in union when saying what they want companies to prioritize.
As AI automation is seamlessly incorporated into society, leaders now face a major challenge: continuing to innovate and expand their business while also investing in and developing their workforce into becoming more equipped.
The bottom line at FinEmpower is simple: nothing should ever be prioritized over ethics, especially in business. That’s why we stay committed to our mission to fight historical economic disparities that minorities in America face and ensure equitable financial knowledge for all Americans.
