Business Ethics: Where did they go?

By: Kevin McNabb Click author's name for more of his/her articles

How would you describe the state of ethics in business – including network marketing – today? Is the state of ethics wonderful? How about rock solid? No, I think most people are disgusted with it. They are sick of dishonesty and unethical dealings.

If I were to ask you to name a business had questionable ethics, would the following names be on your list? And how many of these are still in business?

• 180Solutions
• Adelphia Communications
• Arthur Anderson
• Clear Channel Communication
• Enron
• Exxon Mobil
• Global Crossing
• Halliburton
• MCI WorldCom
• Monsanto
• Qwest Communications
• Tyco
• Wal-Mart
• Xerox
• Yahoo

But what if I asked you to make a list of businesses in the network marketing industry that have been accused of questionable ethics? What names would be on your list? How about:

ACN, Fuel Freedom, Omega Trend, Amway, Herbalife, Prepaid Legal Service, Arbonne, Juice Plus, Primerica, Avon, Kleeneze, Quixtar, Bioperformme, Mannatech, Stream Energy, Equinox, Mary Kay, Tahitian Numi, Excel , Neways, XanGo, Forever Living, Nikken, Yor.net, FreeLife, Nu Skin, etc...

How many of these companies do you think have had their ethics questioned by the U.S. Federal Trade Commission?

It should not come as a shock to you to discover that the large majority of these companies have had their ethics questioned.

Of course, the ethical problems we’re seeing aren’t limited to just the business world. The public was horrified by the recently revealed abuses that occurred in the Catholic Church and how the incidents were covered up. Now as I mentioned before, I am not taking and will not take a stand on a particular religion. However, I will touch on spirituality.

What bothers me about the cover-ups of this “religious” community is how many individuals have been permanently affected without any retribution.

Have you ever wondered how much confidence you have in your own community’s leaders? Leaders like teachers, small business owners, journalists and reporters, elected officials, or even executives of large corporations.

When pollster George Barnett asked people whether they had “complete confidence” that leaders from various professions would “consistently make the job related decisions that are morally appropriate”, the results were abysmal.

Executives of large corporations - 3%
Elected government officials - 3%
Film and TV producers, directors and writers - 3%
Reporters and journalists - 5%
Small business owners - 8%
Ministers, priests and clergy - 11%
Teachers - 14%

What is revealing is that even regarding the most trusted leaders (teachers), six out of seven people are unwilling to give them their complete trust.

Ethical Dilemma within Network Marketing

Our disgust is now turning to discussion. People want to know: Why is ethics in such a terrible state? Although there are many possible responses to that question, it is understood that when people make unethical choices, they do so for one of three reasons:

1. Unfortunately we do what’s most convenient

An ethical dilemma can be defined as an undesirable or unpleasant choice relating to a moral principle or practice.

As human beings, we seem prone to failing personal ethics tests. Why do we do something even when we know it’s wrong? Do we cheat because we think we won’t get caught? Do we give ourselves permission to cut corners because we rationalize that it’s just one more time? Is this our way of dealing with pressure?

2. We do what we feel we must to seek victory

I think most people are like me: I hate losing! Business people in particular desire to win through achievement and success. But many think they have to choose between being ethical and winning.

Many people believe that embracing ethics would limit their options, their opportunities, and their very ability to succeed in business. It’s the old suspicion that good guys finish last.

If I believe that I have only two choices – to win by doing whatever it takes, even if it’s unethical or to have ethics and lose – I’m faced with a real moral dilemma. Few people set out with the desire to be dishonest, but nobody wants to lose.

3. We rationalize our choices with relativism

Many people choose to deal with such no-win situations by deciding what’s right in the moment, according to their circumstances.

According to Dr. Joseph Fletcher in his book “Situation Ethics” , “right is determined by the situation, and love can justify anything – lying, cheating, and stealing … even murder. This philosophy spread rapidly throughout the theological and educational worlds … Since the 1960s, situation ethics has become the norm for social behavior. After spreading so rapidly through the world’s education, religion, and government, it has penetrated a new area – the business world. The result is our ethical situation today.”

The industry of network marketing unfortunately has not been spared the spread of “situation ethics”.

The result is ethical chaos. Everyone has his own standards, which change from situation to situation.

It is interesting to note that though our decisions at one time were based on ethics, now ethics are based on our decisions. If it’s good for me, then it’s good. Where is this trend likely to end?

Let’s take a look at what would happen if we applied this trend to network marketing:

Unfortunately we do what’s most convenient

What if we decided as network marketers to just handle every situation based on what was convenient to us? Not over a short period of time, but over a long period of time. What do you think would happen to our relationships with our downline, as well as our upline? Total disaster!

We do what we feel we must to seek victory

As network marketers, our entire business relies on the relationships we have with the people within our business. As business owners, if we try to “win” each and every transaction or interaction with the people in our business, over time those relationships will die off. The only way to ensure that both your business and your relationships with the people in your business grow is to seek a win-win scenario for each transaction and/or interaction.

We rationalize our choices with relativism

As a network marketer, or even a human being for that matter, waiting until the last moment to decide how to handle a situation without a proper moral compass will end in disaster sooner rather than later.

What’s that? Is the marketplace altering its behavior?

Fortunately, there is an increasing desire for ethical dealing in business, and as far as I can see, this desire reaches the very summit of the network marketing industry.

“In a new era of business, CEOs face a new mandate. Glamour and glitz are out. Transparency – in terms of ethics, values, and goals – is in.”

This statement made about traditional business is an exciting detour from the past 40 years of “situation ethics.”

We are the CEOs of our own corporations, and even though these corporations are managed from our homes, they are multimillion dollar opportunities and thus should reflect the highest ethical standards.

It’s good to know that there is a desire for change regarding ethics in our culture. The bad news is that most people don’t know how to make that transition.

Consider this parable: About two hours into a transatlantic flight, passengers heard a voice over the loudspeaker saying, “This is your pilot. We are currently cruising at 35,000 feet at an air speed of 700 knots. We have some bad news and some good news. The bad news is we’re lost. The good news is we’re making excellent time.”

This parable outlines the situation most people are in with regards to ethics, and It is my hope that the information outlined in this book will be at the very least a stepping stone for anyone trying to find their way to a more ethical way of doing business.

How the marketplace is attempting to resolve this ethical dilemma

If you look at what’s happening in the marketplace, you’ll see that even though we desire honesty and plain dealing, we’re still not winning the battle of ethics. Take a look at how people in our culture are currently trying to address the problem. They:

Outsource ethics instruction

“It’s about evading punishment. Under US federal guidelines, companies that have ethics programs are eligible for reduced fines if convicted of wrongdoing.”

Perform an ethical cleansing

Another approach is to “treat” ethical offenders when caught. If the environment – the systems and goals – of an organization encourages and rewards unethical behavior, then merely addressing individual employees’ actions will not improve the situation.

Rely on the law

Some companies have given up entirely on trying to decide what’s ethical and instead are using what’s legal as their standard for decision-making. The result is moral bankruptcy.

Let’s apply these “solutions” to the network marketing industry. How do you think these solutions would be received within our global community?

Would you really want to hand over to an “unknown” source how your business should be run and how your downline should be treated? I hope your answer is no. If you’re unsure of this answer, you may want to think about a career change.

How about waiting until someone gets caught, even though you know that they’re doing something wrong. Is that the way you would want your business to be run, or to have your downline run their business? Once again, I hope your answer is no.

Would you like to rely on the law to manage your business? Since most network marketing businesses representing global opportunities, relying on the law becomes next to impossible, if not reprehensible.

What do I mean by that? The last place a network marketer or the industry of network marketing wants to leave their destiny is in the hands of any government!

The area of network marketing is the last bastion of free enterprise. It has broken down more walls and opened up more freedom opportunities to people on this globe than any other single business related idea to hit this planet. I implore you to fully understand the area of free enterprise, and once you do, you’ll fully understand the power of network marketing.

Making it personal

One of the problems is that ethics is never a business issue or a social issue or a political issue. It is always a personal issue. People say they want integrity. But at the same time, ironically, studies indicate that the majority of people don’t always act with the kind of integrity they request from others.

The same person who cheats on his taxes or steals office supplies wants honesty and integrity from the corporation whose stock he buys, the politician he votes for, and the client he deals with in his own business.

It’s easy to discuss ethics and even easier to be disgusted with people who fail the ethics test – especially when we have been violated by the wrongdoing of others. It’s harder to make ethical choices in our own lives. When we are faced with unpleasant choices, what are we going to do?

Ethics and the last word

I want to be ethical, and I believe that you do too. Furthermore, I know it is really possible to do what’s right and succeed in business.

Companies that are dedicated to doing the right thing, have a written commitment to social responsibility, and act on it consistently are more profitable than those who don’t.

If you embrace ethical behavior, will it automatically make you rich and successful? Of course not! Can it pave the way for you to become successful? Absolutely!

Ethics + Competence = a winning equation

King Solomon of ancient Israel, reputed to be the wisest man who ever lived, said it this way:

“The ways of right-living people glow with light; the longer they live, the brighter they shine. But the road of wrongdoing gets darker and darker – travelers can’t see a thing; they fall flat on their faces.”

“If it is not right do not do it; if it is not true do not say it.” - Marcus Aurelius

A more recent comment on ethics is:

A state to prosper must be built on foundations of moral character, and this character is the principal element of its strength, and the only guaranty of its permanence and prosperity.

Let’s go back to basics. How do you know what’s right? How do you navigate even the most difficult of pressure filled situations? Where can you find a standard that will work in every situation – a guide that will help you to sleep well at night, prosper in business, improve your marriage, and have confidence that you’re doing all you can every time?

See You On The Beaches of the World,

Kevin "K-Man" McNabb
"The Responsible Network Marketer"

Article Source: ABC Article Directory

About The Author: Kevin McNabb is a professional Network Marketer who retired from the corporate world after more than 20 years to pursue his real passion: helping people. His corporate experience with Fortune 500 companies and Internet startups, coupled with his network marketing industry expertise, provides him with a fresh perspective on such topics as: thinking, dreaming, ethics, attitude, people skills, leadership, habits, personal effectiveness, decision making, personalities, power language, failure and adversity, succeeding, rejection, recognition, finances, marketing and sales. Kevin is the Founder and CEO of Global-Networking-Online.com, a personal development portal for the network marketing and affiliate marketing industries. For more information on "Ethics and the Responsible Network Marketer", please see: www.global-networking-online.com/catalog/Ethics_Invitation_CB.html