Entrepreneurial Ethics: Balancing Profit and Responsibility in Entrepreneurship

Entrepreneurs, it's time to go green. Discover how to make your business more sustainable through ethical practices.

Businesses discovered the enormous importance of environmental, social, and corporate ramifications in the market as we saw the world experience catastrophe during the COVID-19 epidemic. Therefore, it is high time that we focus our discussion on the ethical needs that entrepreneurs need to develop with the end goal of achieving sustainability.

It makes little difference on what size enterprises operate nowadays. Small or large, the focus on environmentally friendly activities has never been more prominent.

Sustainability has graduated from an optional aspect in business to something that should be part of its foundation.

The important question is, how? How can a company begin to take measures toward sustainability? What is the long-term benefit of adopting this? Is it related to the company's income and business objectives?

Here's a counter-question: can businesses afford to focus just on profit?

The basic answer is “No”. If an entrepreneurial venture does not put ethical practices in place with the aim of improving its overall impact in the world positively, it is definitely bracing itself for losses in the future. The resources are running out, and large corporations are leaving massive carbon footprints all over the place.

Can businesses really afford to do nothing in this situation? Certainly not. As a result, leaders, entrepreneurs, and important personnel in businesses have more than simply economic duties.

Here are five basic techniques that might be their starting point:

1. Re-evaluate your supplier chain

Sourcing raw materials with care and transforming them into sellable items with responsible, recyclable packaging should not be as difficult as it seems. With unwavering ethics in place, businesses can rethink their supply chain operations and guarantee that their whole cycle consumes as few natural resources as possible while drastically reducing carbon emissions.

Furthermore, being open about it only benefits a brand's overall image. In fact, a study conducted by a leading management institute revealed that customers may be prepared to spend 2% to 10% extra for items from firms that give better supply chain transparency.

Organizational leaders may start by developing auditing methods, redefining processes, and performing frequent monitoring and verification throughout the cycle to not only measure success, but also promote change across the supply chain.

2. Develop a strategy with the objective of sustainability in mind.

Create a winning culture across the organization? Sure. Create strategies that include economic, environmental, and social considerations into policies, practices, and processes? That's even better.

Take the concept of sustainability a step further by incorporating economic activities and planning into every company strategy and see how it provides long-term value for the firm and society as a whole.

Organizations that use harm-reduction tactics and more environmentally friendly technology, for example, may get a deeper foothold in the community and society. This "do good" approach to business not only attracts superior people, but it also attracts more customers, improving the company's overall financial condition.

3. Encourage volunteering and recognize and reward your staff for their achievements.

Do you believe workers remain for the money or for the culture in which they work (and thrive)? Answers that we have received highlight that both these factors play equally important roles. Nothing fills workers' hearts with pride as an organization that seeks to do better than being connected with a corporation that has the best interests of society at heart.

Consider this: if an organization's misdeeds - and the harmful effect they have on the environment - are exposed to the public, will its workers ever feel connected to their job? However, if employees in organizations operate in healthy work environments, the benefits of better engagement, increased job satisfaction leading to higher retention levels is clearly evident.

When you include a sustainable culture in your organization, where employees have the freedom to regularly contribute to the overall reshaping of operational practices, you receive enduring benefits without having to put in significant time and efforts.

Whether it's as simple as organizing a friendly competition between departments to see who can meet their "monthly reduction targets," or as complex as developing in-house technological solutions to help green the workplace, involving employees and rewarding them for their efforts fosters a sense of purpose in them and ensures higher engagement across the organization.

4. Create workplace practices that support sustainability.

When important personnel in businesses recognize that their operations may have a detrimental effect on the environment, developing rules that contribute to decreasing the organization's carbon footprint and modifying them on an annual basis is a sure step toward attaining sustainability.

A task force committed to reforming day-to-day workplace processes may not only raise awareness but also assist the company meet its annual sustainability objectives. They may educate staff on green habits, convert to more environmentally friendly office goods, and even assist the board in developing laws and regulations that create a healthier working environment.

Add to that the development of your own waste, water, and energy policies, and you're already leagues ahead of firms whose corporate responsibility is low on the priority list.

5. Obtain certificates in Environmental, Social, and Governance (ESG).

What's the nicest part about being an organization certified? You get to flaunt it, which builds credibility, trust, and value for your company. Companies that are ESG certified might present themselves as part of a community that seeks to strike a balance between profit and purpose.

This small step in the right direction that highlights your environmental commitment even endears you to potential investors, who become highly motivated to associate themselves with your business. Furthermore, this honorific title promotes compliance, increased efficiency, and increased stakeholder participation.

Summarising this entire discussion reveals just one critical truth – if your overall efforts are actually harming the global environment; you need to immediately hold yourself back till you have re-evaluated your strategies and made the operational changes necessary. Entrepreneurs, if they get these basics right, will be saluted as “Thought Leaders” and their accomplishments will be glorified across the world, directly benefitting the performance of their organization.

If you have the passion as an entrepreneur to make a difference through your operational practices, connect with experts conducting the Entrepreneurial Training Program at Moris Media, India’s best digital marketing agency.