Is It Ethical to Hire Someone You Know?

Reading Time: xiv minutes (Final Updated On: Baronial thirty, 2021)

Being a practiced person isn't the same equally being a 'good' business owner. Ethically speaking, what you lot do in your personal life could directly contradict what you should exist doing in your role as a business concern owner. And vice versa!

Information technology tin get tricky sometimes, only addressing upstanding issues in business is an essential step to building a strong visitor that will maintain a positive reputation and track record. Of class, at that place are some questions you might accept, for example:

• Which upstanding dilemmas in business should yous be focused on?
• Why is it crucial to address ethical issues in business organization?
• How can you resolve ethical problems in business the correct fashion?

Lucky for you, nosotros give the answers to these large questions – and more – right below. Read and find out!

What are upstanding issues in business organization?

Ethical issues in business organisation bear on a variety of aspects related to a business's general operating standards. The topic of ethical issues in business is focused on what deportment a business takes and/or what policies a business creates in its efforts to resolve ethical questions that come upward.

The importance of upstanding issues in business organisation cannot exist overstated, particularly in today's day and age of social movements and political correctness. All personal feelings gear up aside, it remains a fact that electric current events have reshaped current upstanding issues in business and, to a big degree, have increased the focus placed on ethics in the workplace.

Establishing a code of ideals for your business concern to operate by will help y'all lay a firm foundation of bones trust between you and your employees, clients, partners, suppliers, and then on. Fortunately, the law frequently gives the answers to questions related to ethical issues in business (we'll affect some examples later on), but that's not always the instance. That'due south why every business concern possessor should familiarize themselves with what ethical issues in concern are, why they thing, and how they should exist addressed.

8 Mutual ethical issues in business concern and how to address them

Information technology's not enough to simply know what the biggest upstanding dilemmas in business are – you should also be aware of why they're considered problems and what you tin do most it at your business.

Here, nosotros cover information technology all. Whorl downwardly and discover out!

Common upstanding issues facing businesses in 2021:

1. Sexual Harassment
2. Diversity & Discrimination
3. Social Media
4. Wellness & Safety
5. Ecology Responsibility
6. Accounting Practices
7. Data Privacy
8. Nepotism

Note: Ethical issues are even more important for startups and small-scale businesses since their reputations are not also-established as a big corporation might exist. What that means is, if there'southward a lawsuit over an ethical issue at your business, the process of defending yourself could do some serious harm. It could even bankrupt your business! Take these ethical problems in business organisation seriously and avoid the risk to your reputation and financial stability.

1. Sexual Harassment

By and large when we discuss harassment at piece of work the topic quickly shifts to sexual harassment. There's no doubt that it is an ethical issue in business that should be taken very, very seriously – and if you're not certain why then you lot demand to read about the #MeToo Movement . While we shouldn't forget that at that place are many forms of harassment in the workplace, sexual harassment is ane that deserves to exist addressed on its own.

According to the U.South. Equal Employment Opportunity Commission (EEOC), in 2018 alone there were more than seven,600 allegations of sexual harassment fabricated. Non merely that but the resulting monetary benefits for those plaintiffs were in excess of $56.6 million – an indication of the validity of those claims.

When we have an fifty-fifty closer look at this ethical result, we find that 54% of women written report having experienced unwanted sexual advances in the workplace and 23% said that the instance of sexual harassment actually involved a superior.

These numbers paint a troubling reality and nowadays existent challenges to creating a workplace surround where people feel secure and comfortable.

What can your business organisation do about sexual harassment?

The most important footstep in addressing sexual harassment equally a serious ethical dilemma in concern is to implement employee training. Start by making sure everybody who works for you lot is made aware of the rules, that those rules are posted around the workplace, and by enforcing a zero-tolerance policy for sexual harassment.

From there, you'll want to ensure that leaders in your business concern are setting good examples, that you continuously monitor for inappropriate behavior, and that you provide employees with a safe and detached artery for reporting cases of harassment. Additionally, at that place should never be any fear of retaliation for reporting sexual harassment – victims, whether alleged or proven, should go your full support.

It's also best to take preventative steps to reduce the risk of sexual harassment. That can include having employees sign agreements that they will follow company rules, not allowing the 'little things' to slide, by limiting the serving of alcoholic beverages during company events, and then on.

If sexual harassment does occur at your business organisation, acknowledge the accuse, investigate the case thoroughly, reply with care, and administer discipline if need be.

2. Diversity & Discrimination

Discrimination in the workplace is essentially whatever aspect about the job itself or the duties related to it which are treated differently with respect to any of the categories listed below. Ensuring multifariousness and actively preventing discrimination are critical aspects of resolving ethical dilemmas in business.

The EEOC lists the following types of discrimination:

• Age
• Disability
• Equal Pay/Bounty
• Genetic Data
• Harassment
• National Origin
• Pregnancy
• Race/Color
• Organized religion
• Retaliation
• Sex
• Sexual Harassment (every bit we discussed this above)

About of us are [unfortunately] aware that some people concord prejudices towards people of a certain ethnicity, race or color, religion, sex or sexual preference, people over a certain historic period, mentally or physically disabled individuals, and so on. In fact, a shocking 61% of American employees study having witnessed or experienced discrimination based on historic period, race, gender, or LGBTQ identity at work. On top of that, women currently make $0.81 for every dollar that men earn.

Other categories similar genetic data or retaliation might exist discussed less frequently, but are important nonetheless. To quickly clarify, genetic discrimination in the workplace is when a business treats an employee differently based on their genetic predisposition to developing a certain disease or disorder (such as a family history of heart illness, for example). Far-out as it may seem, this sort of ethical problem in business is condign more prevalent equally advancements in science go along to make DNA sequencing easier, quicker, and cheaper.

Regardless of how familiar yous are with the different categories of discrimination, you can use the set up of guidelines for each blazon of discrimination published past the EEOC to ensure that you operate properly with respect to this ethical consequence in business concern.

Note: The lending manufacture is not allowed to ethical dilemmas in business, but information technology is taking steps towards leveling the lending playing field for women, minorities, young businesses, immature owners, and more.

For instance, Get has made huge strides in eliminating human bias from the loan decision-making process by using advanced technology to analyze a business organisation's financial health & stability. Your LendingScore™ will reflect your business, never your personal background or circumstances.

It's peculiarly important that your business positions itself to respond quickly and effectively to whatever instance of bigotry peculiarly given the current ethical bug in business concern specifically related to race.

What tin can your business organization do almost bigotry?

Equally is the case for all upstanding issues in business concern, the first stride to preventing unacceptable beliefs is to brainwash employees, make sure anybody is aware of the rules, and take a organization for distributing disciplinary action when needed.

After that, ane of the best ways to fight bigotry at work and guarantee a various group of employees is to consciously hire people with different characteristics and backgrounds. Having a various workforce volition not just ensure equal representation for different groups of people but volition too, in turn, help your business fight against discrimination by bringing in a diverseness of perspectives into the fold.

You should also be careful about implementing business policies that may be inadvertently discriminatory towards a particular group of people. For example, you lot may require all employees to shave their beards – but if the rule is deemed arbitrary and doesn't actually have annihilation to do with the employees' power to properly practise their jobs, the rule can be considered discriminatory on religious or fifty-fifty race grounds.

The bottom line: Be aware of how your business'due south policies may be seen equally discriminatory and be open up and flexible enough to make accommodations for all of your employees, regardless of their personal characteristics or circumstances.

3. Social Media

One of the more current ethical issues in business concern is the question of employees' personal behavior on social media outside of work hours. Granted, at that place's nonetheless quite a large greyness surface area of situations that may or may not make information technology ethically justifiable to fire an employee for their social media conduct.

Here are a few questions yous'll want to consider with regards to this upstanding dilemma in concern:

• Is it right to punish employees for certain types of social media posts?
• Are you obligated to keep an employee who holds distasteful views and expresses them online?
• Should yous fill the role of a mediator if employees become into a disagreement with each other on social media?

When it comes to employee etiquette on social media, the bottom line for almost businesses is that the employee can be justifiably fired if the activity is deemed disloyal or financially harmful to the visitor. Of class, neither your nor your employees would want to become to a point like that – so what can you do to minimize 'bad' employee behavior on social media?

What can your business practice about ethical issues related to social media?

Addressing ethical problems in business connected to social media can be tricky mainly because almost situations will autumn in the greyness area. To help eliminate confusion or disclarity for you lot and your employees, the best stride to take is to create a set of rules and policies that clearly describe what is (and isn't) acceptable for employees to do on social media.

Your business organization'southward guidelines for employee behavior on social media should be paired with training sessions and periodic visitor-wide reminders via e-mail. Likewise, if at that place ever is an instance of misconduct on social media and you lot're forced to fire an employee, it may be a good opportunity to readdress the topic with other employees.

iv. Health & Safety

At that place are few ethical problems in business organisation that are more serious than the health & safety of your employees and customers. Besides the obvious ethical implications of people getting hurt or sick while working for your business, there's also the huge chance to your business's fiscal stability and reputation. Don't be fooled just because this ethical consequence in business organization is number 4 on this listing!

In 2018 alone, the U.S. Bureau of Labor Statistics reported 5,250 fatal injuries, the causes of which included everything from injuries by animals to falls/slips/trips to transportation incidents and more. It may come every bit little surprise to learn that the ii industries with the most fatal injuries are transportation (1,379 fatalities) and structure (i,008 fatalities). Merely regardless of what manufacture you're in, what your rails record looks similar, or how risky you think your business concern is – addressing health & prophylactic in your workplace is of the utmost importance.

Information technology'southward key to also highlight that physical safety shouldn't be your simply focus; psychological well-existence is a core component of creating a safe and salubrious workspace. Consider this: approximately 63% of the U.S. population is part of the labor force and roughly 71% of adult Americans report at least i symptom of stress (like headaches or anxiety).

Information technology's not all doom and gloom though; of course, in that location are actions y'all can have to ensure health & safety at piece of work.

What tin can your business do about health & rubber?

There's been plenty of research done on the topic of combating ethical issues in business related to workplace health & rubber. The World Health Organization has gathered data to develop some fundamental communication on how to promote safety and health in the workplace:

• Regularly inspect your workplace for any potential hazards
• Train your employees so they're educated on rubber protocols
• Promote healthy living (stock kitchens with healthy snacks & drinks)
• Inform employees that help is available
• Recognize and reward hard work
• Create opportunities for employees to abound
• Hold periodic meetings with employees to understand their needs

v. Environmental Responsibility

Environmental responsibleness in business may seem like it'south targeted at big oil companies, lumber businesses, farming, and other businesses that have a more than direct impact on the surround. But that'due south not the example! Even if your business operates entirely within the confines of an office building, ecology responsibility is still on the list of upstanding bug in business that yous should pay heed to.

Every business possessor is responsible for the carbon footprint that their company produces. That applies to how your business affects air quality, h2o cleanliness, the condom of endangered species, the utilize & conservation of other natural resource, the pristineness of protected nature reservations, and and so on. Fortunately, the government has made laws to address almost of the environmentally-related ethical dilemmas in business. Those laws include the Make clean Air Act, the Clean Water Act, the Endangered Species Act, the Resource Conservation and Recovery Act, and more.

All of that said, a contempo written report institute that a whopping 78.2% of small businesses oasis't designed or implemented an environmental management arrangement. Information technology should exist noted though that small businesses have reasons for not implementing environmental management systems. Those reasons include the fiscal burden of making changes, complications that may ascend while implementing changes, not having enough guidance on how to go greenish with the business , and so on. How can your business organisation avoid those obstacles?

What can your business do almost environmental responsibility?

At that place are numerous ways that your concern tin address environmental responsibility, some of which tin exist a bit costly and others that you can start implementing today. Either way yous'll want to create an environmental management system:

1. Assess for areas to ameliorate
2. Cull the means to get green
3. Define the goals for your EMS
4. Create an Ems team to implement and oversee changes

Amidst the easier-to-do tactics your business should be doing: going paperless. Not only will information technology salve trees, but it will also relieve you lot money – roughly 31 times the toll you spend on the paper itself. In other words, if you buy a $twoscore pack of paper, you'll ultimately save around $one,200. The planet will thank you, and so will your banking concern account.

Of the [possibly] more complicated and costly routes to environmental consciousness: using renewable energy. Namely solar power. Installing solar panels on your identify of business organisation volition reduce the amount of electricity y'all source from the power company and can save you upwards of 80% on your electrical bill. How does reducing electricity consumption impact the environment? Consider this case from Fast Visitor :

"…if every one of 110 meg American households bought just i ice-cream-cone bulb, took it dwelling house, and screwed it in the place of an ordinary lx-watt bulb, the energy saved would be enough to power a city of 1.v million people [and]…is equivalent to taking 1.3 one thousand thousand cars off the roads."

At the stop of the day, we all should be doing our best to keep our planet clean and healthy for future generations – your business concern tin play its part!

6. Accounting Practices

This is one of the more 'classic' ethical issues in business organisation and comes along with some very serious legal implications every bit well. Manipulating a business organization's financial information to make the company look more successful – likewise known as "cooking the books" – is the virtually well-known grade of accounting misconduct (and is a federal crime). Beyond the legal boundaries that it crosses, the ethical dilemmas in business concern related to bad accounting practices can put innocent people in impairment's way.

Say, for example, your business was to misrepresent its earnings and expenses. Not only would you be adulterous the IRS and American taxpayers by benefiting from revenue enhancement deductions your business doesn't really qualify for, simply y'all'd also be deceiving your shareholders (if you have any). If you lot then go caught, y'all could also exist responsible for your employees losing their livelihoods – even if they take no knowledge of the wrongdoing. This is definitely an ethical trouble in business that you want to avert at all costs.

What can your business do about bookkeeping practices?

The solution to this ethical issue in business is quite simple: personally review your financial statements and reports to ensure that they're honest and accurate. If that's going to be too fourth dimension-consuming, hire an accountant y'all trust to run the numbers – fifty-fifty if they cost a pretty penny. And if cost is stopping you from hiring an auditor, but yous're not sure if yous can do it lone, and so take some fourth dimension to look over the top v bookkeeping software that tin can help you continue your books in order.

Important note: After some conscientious thought, you may find that hiring an accountant is well-worth the investment, but you may all the same exist brusk on funds to make information technology happen. Consider taking business concern loans every bit a mode to articulate this hurdle and practice what yous need to practice to go on your business organisation protected from the risks of fraudulent accounting practices.

In whatever case, this is not something to leave upwardly to run a risk. Be sure that whoever is handling the accounting terminate of your business organization is trustworthy. If they aren't, replace them with someone who is.

7. Data Privacy

These days you'll exist hard-pressed to find anyone who doesn't accept some sensitive information stored digitally – including your employees. In fact, more 80% of Americans own a smartphone and the boilerplate person uses roughly 25 applications every calendar month. That'southward a ton of opportunities for data to fall into the incorrect hands!

So what does that have to practice with upstanding problems in business? Well, the ethical problems have less to practise with how your employees conduct themselves on company computers, smartphones, and tablets (although that'south super important to address!). The ethics come up into play when you lot decide how exactly to implement a cybersecurity plan for your business .

What can your business exercise about information privacy?

To avoid the reputational and fiscal impairment of a data breach, you'll want to develop a small business cybersecurity plan and put it into action equally soon as possible. The ethical questions ascend effectually the specific aspects that make upward your cybersecurity plan. To be more precise, when does monitoring your employees' behavior on company devices cross the line and become unethical? Unlike some other ethical problems in business, this one doesn't have legal restrictions. Businesses have the legal correct to wait into your browsing history and company email use, and they do!

Check out this data from the American Management Association :

• 66% of businesses monitor Cyberspace connections
• 45% rails content, keystrokes, and time at keyboard
• 43% save and review files on your estimator
• ten% monitor social media

Ultimately, the way to avoid these ethical dilemmas in business is to openly communicate about them. There'due south no sense in keeping your business's monitoring a cloak-and-dagger from employees. Quite the contrary – if they know y'all're monitoring, they'll be less likely to do the things you have warned them about.

viii. Nepotism

Nepotism, in case y'all're unfamiliar with the term, refers to a class of favoritism for family unit members or close friends. While information technology tin can definitely introduce issues into the workplace under certain circumstances, nepotism isn't inherently a bad affair if the family member or friend is fit for the position and gets along well with other employees.

The problem typically arises when that isn't the case, and you current of air up hiring someone based on your personal human relationship with them and non on their ability to do the job. Just even when they are qualified for the position, hiring a friend or family fellow member tin can however breed resentment among other employees. That's why you need to exist extremely careful when deciding to bring someone from your personal life to piece of work in your business concern.

What tin your business exercise about nepotism?

Besides being very conscientious about who you lot bring into your business, in that location'due south not much yous tin practice to eliminate the negative views that some employees may have if and when yous hire a family member or close friend. Even if yours is a family owned business, you'll want to pay shut attention to the ratio of employees vs. friends/family. Later all, as the former saying goes, "you can't be a dominate and a friend".

9. Theft

Last merely not least, theft is 1 of the most mutual phenomena worldwide. According to a survey by Finance Online, 39% of businesses have experienced more than than one case of employee theft. Only what exactly does that hateful? Is there more to employee theft than "merely" stealing inventory? The respond is yes.

Employee theft is also about violating another ethical bug, similar stealing time; although this effect isn't talked about frequently, many businesses are losing a fair amount of money due to faux omnipresence reporting of employees.

What tin can your business do nigh theft?

Preventing theft is a process that should get-go at the very beginning of the recruitment of employees. Obviously, you'll desire to be rest bodacious that your potential employees are trust worthy and respectful of your business organisation in all ways. Brand sure to conduct groundwork checks, address employee theft in your company policy and occasional updates, and brand the consequences of theft articulate enough for all your employees. Also, encourage your employees to heighten a flag when suspicion ascend.

Exist and do your all-time

Upstanding problems in business organisation are something that most if not all owners will meet at some point in their career. Fifty-fifty if y'all take all of the necessary precautions and follow the recommended steps, yous should e'er stay prepared to handle ethical dilemmas in business in an appropriate and productive manner. When issues arise, utilize them as opportunities to larn as an owner and to build a better, fairer, and more ethical business.

Disclaimer: The information independent in this article is provided for informational purposes merely, should not exist construed as legal communication on any subject field thing and should not exist relied upon equally such. The author accepts no responsibility for any consequences whatever arising from the use of such data.

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Source: https://www.become.co/blog/ethical-issues-businesses/