Earning a reputation as an ethical company is important in today's changing client, but it takes a lot of hard work and commitment. There are still too many companies that are purely driven by money. But it's possible for a company to have ethical and sustainable practices while remaining successful.
For example, Doterra oil distillation abides by a code of ethics that all employees must follow. They sell ethically sourced essential oils that are tested on a regular basis. Here are six ways to know if a company is ethical.
1. Ethical Leadership Practices
The backbone of an ethical company is its leadership. This is reflected from the top of the organizational hierarchy. In order for a company to be ethical, it should follow ethical practices. Ethical leadership involves making business decisions that are for the greater good.
What separates ethical leaders from traditional leaders is the difference between making a choice that's ethically responsible and one that will lead to increased profits. Leaders who make business decisions that lead them down the ethical path, aside from one that's based on financial gain, will lead to success in the ethical culture. When the culture is at the forefront of the organization, then it's reflected in each hierarchy.
2. Core Value Statement
If you're not sure if a company is ethical, then you should read their core value statement. While most businesses have a value statement, an ethical company stands by what they say. It effectively communicates their vision for their customers, employees, structures, and the global environment. Only ethical companies create a code of conduct that supports their mission and values.
The core value statement is a guideline that every employee must follow as they carry out the company's mission.
3. Respect for Customers & Employees
You can't have ethics without respect. An ethical company shows respect for its employees by taking the time to address their questions and concerns. They also make sure that they're working in safe conditions. They also value their feedback and treat their employees as individuals rather than numbers. Ethical companies also provide their employees with a fair wage and benefits.
They also respect their customers by assessing their needs and listening to their feedback. Ethical companies also respect their suppliers and vendors by taking part in ethical and sustainable practices. An ethical company respects the environment by being eco-friendly and expressing concern for common manufacturing practices.
4. Fairtrade or GOTS Certification
If you're interested in a clothing company, you should find out if the clothes are Fairtrade or GOTS certified. Most companies will tell you that they're Fairtrade or GOTS certified at the top of their website. But it's also a good practice to check the bottom of the website or to read their "About Us" page for more information. You should look for a Fairtrade Organization or Global Organic Textile Standard certification seal.
One of the most important ways to find out if a company is ethical is whether they use transparency. Is it hard to find information about their fabrics or materials? Or, do they take pride in the sources they use? Do they encourage feedback and support from customers? Or, do they hide what they do behind the scenes?
6. Fights for a Certain Cause
Most ethical businesses support a certain political or social cause. They express concern for customers and employees that have been negatively impacted by other businesses. This concern is expressed in the way they treat their customers, employees, vendors, and the world around them. Every business decision is based on how it'll affect the environment around them.
The more information you have about a company, the better. A company that's focused on improving the earth and respects the right of its workers is a company that you'll want to associate with. They'll pass those traits onto the customer who also wants these desires for the world. Get into the habit of reading the "About" page to learn more about the company.