On this occasion, the author reflects on the ethical concept in business development within the security industry.
By: Héctor R. Torres, PhD, CPP, CFE, CHS*
A fraternal greeting from Puerto Rico to all colleagues and readers of this column! It is a pleasure to share again with you. In this edition we will talk about a very important topic in the business world and therefore in our security industry. I am referring to the issue of ethics, which continues to increase its relevance.
You don't have to know much to understand how much the landscape of the business world has changed due to the global recession and how competitive the markets have become. Competition in our world of security is not far behind. We have seen in our respective countries the proliferation of multiple businesses in our industry that offer everything from security guard services to electronic products and services. Although there is a need to compete to win in the security market, we cannot be tempted to compete unfairly and be unethical.
However iron the competition as professionals, we cannot justify unethical actions based on the Machiavellian thought that the end justifies the means. Before entering fully into the subject we must first define what ethics is in business.
Ethics in business
This point can be defined as the set of moral rules that govern conduct in the business world. In other words, how companies and corporations are guided through moral rules in their decision-making, their competition with their adversaries and with the treatment of their customers.
Ethics in the business world has undergone many modifications as a result of changes in society. Ray Cotton (1998) in his essay on business and ethics points out that society has shifted, from a Christian basis that held that there is a source of ultimate truth to modernism that considered truth as relative to circumstances, duty, consequences, situations, etc., to postmodernism that asserts that there is no truth, but only one's power to establish one's own values.
Based on what Cotton tells us, our society has undergone many changes in terms of our values, creating the conditions for unethical conduct. The focus on making a quick buck and competing rampantly against business adversaries has become the new norm for the business of many companies that do not take into consideration the effects this has on the company and its customers.
Every day we see in the media the bad practices of ethics in business. We read how frauds, manipulations, thefts, industrial espionage, corruption, "bites", conspiracies, tax evasion, embezzlement of funds and unfair competition proliferate. Everything points to the fact that companies involved in these bad ethical practices have lost their north, their values and principles.
The most important thing for this company is that the end justifies the means. Making money itself is not bad, it is the principle of capitalism. But when the way to do it causes harm to others then business practices become unethical.
Five Principles for Business Ethics
From a philosophical point of view, ethics, which is based on the principles of acceptable morality and conduct, is in turn based on the golden rule of treating others as we want to be treated. From this rule emerge five self-explanatory principles for business ethics:
- Principle of harm: Companies must avoid causing any kind of inexcusable damage to their adversaries and their customers.
- Principle of impartiality: Companies must be impartial in all their business practices. There should be no business practices that favor one company over another.
- Principle of Human Rights: Companies must respect Human Rights. This principle has to do with the exploitation of human beings in the production of goods for a company.
- Principle of autonomy: Companies should not interfere with the rational decisions of consumers. Consumers should have the opportunity to choose what is best for them without undue interference.
- Principle of truthfulness: Companies should not be deceptive in their business practices. This principle emphasizes that truth should govern all of a company's business practices.
Another great example of how the golden rule and good ethics is practiced is through the 4-Way Test. Written by a member of a Rotary Club in the United States and integrated in 1955 as part of the Walgreens pharmacy chain practices, the 4-Way Test is based on asking the following questions when doing business:
1.Is it the truth?
2.Is it fair to everyone?
3.Will you develop goodwill and better friendship?
4.Will it be beneficial for everyone?
Ethics should be part of every business but money tends to make the important factor about ethics. If a company is making a lot of money, it is probably not inclined to practice ethics in its business. There are many companies that practice it with great pride, however, in this competitive world there are very few. In the end, customers and governments will have a responsibility to watch over and denounce unethical companies. The challenge for those of us who have security businesses is not to fall into this kind of behavior and lose our professional credibility.
I invite you to continue to share your ideas and concerns from the world and security management.
A hug and see you next time!
* If you wish you can write to the author of this article at the email [email protected]
