BEING AN ETHICAL PRODUCER

INTRODUCTION

Every business owner has the obligation to read and apply the rules of ethics daily and
make sure everyone under their employment does the same.
The study of business ethics refers to the ethical dimensions of productive organizations
and commercial activities, according to the Stanford Encyclopedia of Philosophy. It applies to
the production, distribution, marketing, sale and consumption of goods and services. It can
include potentially controversial issues like insider trading, bribery and discrimination.
Ethical leadership is defined as "leadership that is directed by respect for ethical beliefs
and values and for the dignity and rights of others." It is mainly concerned with moral
development and virtuous behavior. Or, as Heather R. Younger, founder of Customer Fanatix,
put it, "an ethical leader is someone who lives and dies for integrity. Doing the right thing, even
when it hurts, is the ethical leader's mantra.
From its roots in ancient Greece to modern topics like unequal gender pay, business
ethics is a very important field of study. Business decisions related to ethics impact the daily
lives of professionals and consumers. Many people are employed at organizations that sell or
provide goods and services. Professionals like lawyers and accountants are bound by codes of
conduct from professional societies, and other professionals must practice sound business ethics
in their role and with co-workers, clients and the public.
Consumers interact with the brands and people in a business, and these exchanges affect
the success of the business. For example, small businesses depend on reputation and trust among
people in the community. By treating employees and customers well, businesses can gain the
community’s support.
Unethical business practices can have the opposite effect on customers. False or
discriminatory advertising, negative treatment of employees and ignoring safety concerns in
products can undermine consumer confidence. Legal action can also result.

DISCUSSIONS

HOW TO BE AN ETHICAL OWNER.

 Small-business owners will find themselves confronted more often with ethical choices
because of the decision-making autonomy that they have. The ethical choices that are made will
likely impact a far greater number of people than will the ethical decisions of individual
employees. Many business decisions will pose ethical challenges—examples being whether to
use inferior materials to produce products because of competition with larger businesses,
employee and workplace problems, product quality and pricing, legal problems, and government
regulatory concerns. .Jeffrey S. Hornsby et al., “The Ethical Perceptions of Small Business
Owners: A Factor Analytic Study,” Journal of Small Business Management 32 (1994): 9–16,
adapted. 
According to a paper in Procedia Economics and Finance, corporate social
responsibility is a subset of business ethics. This conclusion was made when viewing corporate
social responsibility under the normative stakeholder theory, or a philosophy that “affirms that
business corporations are ‘morally’ responsible to look after the concerns of a larger group of
stake holders which could include owners, customers, vendors, employees and community rather
than its stockholders.”
Corporate social responsibility becomes synonymous with the duties and relationship
between the business and the environment that facilitates its existence. And thus, it is not enough
to cover certain ethical practices in businesses. For instance, corporate social responsibility does
not include the ethicality of how the organization pursues profits or subscribes to political
associations.1
Businesses should use corporate social responsibility along with processes like corporate
governance, corporate outreach and politics, business process redesign and corporate strategy to
reconcile with the ethicality of doing business, according to Procedia Economics and Finance.
The small business owner is in a unique position to set the ethical tone for the business.
Employees will follow the lead of the owner when executing their duties and tending to their
responsibilities, so it is critical that the owner establish an ethical work environment.“Business
Ethics,” Answers.com, 2001, accessed October 7, 2011, www.answers.com/topic/business-
ethics. Establishing an ethics policy (code of conduct or code of ethics) is an important step in
creating that environment. Employees who work in companies with active ethics programs; who
observe leaders modeling ethical behavior; and who see honesty, respect, and trust applied
frequently in the workplace have reported more positive experiences that include the
following:Natalie Rhoden, “Ethics in the Workplace,” Articlesbase, November 5, 2008, accessed
October 7, 2011, www.articlesbase.com/human-resources-articles/ethics-in-the -workplace-
629384.html.
Organizational ethics are the principals and standards by which businesses operate,
according to Reference for Business. They are best demonstrated through acts of fairness,
compassion, integrity, honor and responsibility. The key for business owners and executives is
ensuring that all employees understand these ethics. One of the best ways to communicate
organizational ethics is by training employees on company standards.
One example of organizational ethics is the uniform treatment of all employees. Small
business owners should treat all employees with the same respect, regardless of their race,
religion, cultures or lifestyles. Everyone should also have equal chances for promotions. One
way to promote uniform treatment in organizations is through sensitivity training. Some

1
https://online.grace.edu/news/business/business-ethics-and-social-responsibility/
companies hold one-day seminars on various discrimination issues. They then invite outside
experts in to discuss these topics. Similarly, small company managers must also avoid favoring
one employee over others. This practice may also lead to lawsuits from disgruntled
employees. Business owners must run clean operations with respect to finances, investing and
expanding their companies. 
Ethical leaders are those who display reflect a good image of the business, and in turn,
attract and retain the best talents. Develop an honest work environment where employees can
report unethical behavior without fear of punishment. Gain confidence and trust by providing a
private space to discuss any concerns anonymously. Investigate the claims fully, before jumping
to conclusions, while maintaining the anonymity of your employee. Then discipline or
reprimand, if necessary, in order to establish that some actions are not accepted, and will not be
tolerated.2
 More leaders are encouraging their employees to communicate freely and openly and not
restricting their thought process and ideas. By doing so, a leader would not only be promoting an
environment of honest and open communication, but also showing staff trust and respect. 
Don’t think about ethics as just following laws and regulations. Leaders need to take
action and show consumers and other stakeholders that they are actively engaged with ethical
issues that matter. Recognize how ethics influences consumers' reasons to buy from you, and
demonstrate a commitment to go beyond mere compliance with laws and regulations. They must
prove that they are committed to ethical issues, including human rights, social justice
and sustainability.
Ethical owner must care about people before profits. Realize that the triple bottom line of
people, planet and profits is not only about prioritizing people over profits, but also thinking
about how your company affects the planet and adopting environmentally-friendly ways of doing
business.

HOW TO BE AN ETHICAL PRODUCER.

Ethics in production is a subset of business ethic that is meant to ensure that the
production function or activities are not damaging to the consumer or the society. Like other
ethics there is a certain code of conduct or standards to be followed, however ensuring that the
ethics are complied with is often difficult.3
One of the most important characteristic of the business today is that there is a great
degree of interdependence between various business functions. Production cannot happen
without marketing and sales and vice versa. In order to survive in the competitive sphere
organizations try to reduce the costs involved in production processes. This cost efficiency is
sometimes achieved at the cost of quality. Poor processes and technology is used to keep the cost
down, this is especially true for small players who cannot afford economies of scale. Having said
2
https://www.entrepreneur.com/article/272746
3
https://www.managementstudyguide.com/ethics-in-production.htm
this there are also examples of industry giants that compromised on certain production processes,
cola companies make up for a good example.
Ethical manufacturing is a holistic approach to the manufacturing process that focuses on
good health for all involved. Ethical business care about every part, every facet, of their
company. From production to the customer, ethical business manufacture safe products safely.4
An ethical producer ensures all parts of their product production is safe, efficient, and
focuses on the health of the workers. He enforces safety procedures that care for the best interest
of workers on top of those that are legally required. An ethical business does not sacrifice worker
safety or worker health for increased productivity. Workers in an ethical business are treated
fairly, with balanced work hours, appropriate compensation, and thorough protection against
injury.
An ethical producer ensures all parts of their product production is energy efficient and as
safe for the environment as possible. He ensures to minimize their production of waste and
emission as much as possible. Ethical companies often explore the use of alternative
technologies in order to reduce the energy being utilized during production. He will strive to be
environmentally friendly, pushing for a greater decrease of waste, energy, and emissions, across
all parts of the company.
When you order products from an ethical business, you can be sure your product was
safely manufactured, and is safe for you and your family to use. When you shop ethically, you
know you’re buying from a company that is neither wasteful nor cruel: you’re buying from a
company that cares. With ethical manufacturing, the goal is safety, and love.

An ethical business produces safe products. An ethical business cares for the health of
their customers, stringently testing for safety to eliminate harmful contaminants or effects.
Products from ethical companies are safe, legal, and even proactively texted in order to combat
unexpected effects.
Sustainable food production is “a method of production using processes and systems that
are non-polluting, conserve non-renewable energy and natural resources, are economically
efficient, are safe for workers, communities and consumers, and do not compromise the needs of
future generations”.5 Global food production methods must change to minimize the impact on
the environment and support the world’s capacity to produce food in the future. As with other
man-made activities, food production contributes to climate change, water scarcity, soil
degradation and the destruction of biodiversity.
Ethical businesses prioritize safety in the workplace. In a manufacturing environment, the
presence of machines and raw materials make adequate safety procedures both legally mandatory
and ethically necessary. In addition to basic safety rules, such as wearing protective gear and
refraining from engaging in risky behavior, the main issues relate to a reasonable balance
between inconvenience, productivity and safety. Applying too many rules creates compliance
problems, while not addressing safety issues can lead to injury. If you give the employees a role

4
.https://www.kangovou.com/ethical-manufacturing/

5
https://www.futurelearn.com/courses/food-supply-systems/0/steps/53673
in developing safety regulations for a production line, it helps in the implementation of effective
rules that strike the right balance.
Manufacturing processes use energy and produce waste. Legal restrictions govern how
companies can produce energy while limiting emissions and how they have to treat waste to
reduce environmental damage. Ethics in production influence the overall approach of a company
toward environmental degradation caused by its manufacturing operations. Taking into account
both legal and ethical factors, you have to reduce your energy use by increasing energy
efficiency and exploring the use of alternative technologies. At the same time, you can reduce
waste by looking at where it is generated and changing your manufacturing process to produce as
little as possible.6
In addition to internal issues, manufacturing companies face liability once their products
leave the factory. Product safety is governed by legislation, and ethical concerns mean you
should only ship products that have been tested for safety. While knowingly shipping dangerous
products is illegal and unethical, the use of your products also may have unintended and harmful
effects. Going beyond legal requirements to thoroughly test all aspects of the use of your
products reduces your exposure to possible law suits and fulfills your ethical duties.

CONCLUSION

Business owners face ethical decisions everyday in their companies. Business ethics
issues always start small. Each small decision you make builds the kind of businessperson you
are and the kind of company you run. We need to realize that most of these decisions produce
both good and bad results.
As a business owner, you want to make a profit and grow your business. That's why
you went into business. As a moral, caring person, you want to contribute to positive change in
the world. These motives don't need to conflict with each other: Your business can do well
financially and it can also do good in the world. The intersection of the profit motive and the
moral imperative can help establish your business as one that's ethically responsible. Many
large companies have embraced the idea that they can operate their business in an ethically
responsible manner. Being an ethical owner or producer means maintaining —even improving
— your objective of making profit, while setting a high bar for making a positive contribution
to society.
Ethics are about doing the right thing. They are about standards that help us decide
between right and wrong. They are not the same as our feelings, religion, the law, cultural norms,
science, or values.
Business ethics are about applying the virtues and discipline of ethics to business
behavior. They set the standard for how your business is conducted and define the value system
of how you operate in the marketplace and within your business. Ethical behavior in business
improves the workplace climate and will ultimately improve the bottom line. The cost of
unethical behavior can be staggering.

6
https://smallbusiness.chron.com/legal-ethical-issues-manufacturing-companies-74890.html
 Small-business owners or producers have the opportunity to set the ethical tone for their
companies. Modeling ethical behavior is key. The community and peers heavily influence small
business ethics.