Tips for ethical business

With moves towards environmental protection and the notion of accountable business increasingly accepted as favourable codes of practice to follow, it is important that small firms incorporate ethical and environmental principles into their business plans and day-to-day working lives. Click here to find out how...

With moves towards environmental protection and the notion of accountable business increasingly accepted as favourable codes of practice to follow, it is important that small firms incorporate ethical and environmental principles into their business plans and day-to-day working lives. For many small business owners, tied up with administration tasks of running a business, this may seem like an insurmountable task.

SmallBusiness.co.uk and Paul Allen, author of new small business book Your Ethical Business: How to plan, start and succeed in a company with a conscience, offer this list of simple tips on how to approach the issue of running a more ethical business.

  • Reduce your environmental impact: Cutting down your energy use by turning off lights and computers when you leave work, recycling packaging and waste paper won’t only save you money, it will also shrink your ‘carbon footprint’.
  • Consider your legal form: The traditional limited company status isn’t for everyone. If you want to prove that strong ethics are central to your business, there may be a more suitable structure, such as a co-operative or the new Community Interest Company – limited companies, with additional features, created for the use of people who want to conduct a business or other activity for community benefit, rather than purely for private advantage.
  • Write an ethical constitution: Articles of association and memoranda for limited companies – documents which set out the structure, purpose and operating parameters of your business – are the perfect place to detail the values that really make your business tick. Why not write a code of practice for your employees to follow and to show your customers that your work is ethically sound.
  • Clean your supply chain: Even if you feel comfortable about your own ethical credentials, other firms in your supply chain may not be as diligent. As a small business, you can’t always call the shots; but asking suppliers about their environmental policies might just get them thinking. And as you grow, you can start to choose which companies you work with more selectively.
  • Support your community: From the local football team to a far-flung community, sharing skills, giving up time or offering preferential rates to other small groups and organisations you feel close to are just a few examples of how your business can create a real community spirit and increase awareness of your company.
  • Make a charitable connection: Another way to give something back is to donate a percentage of your turnover or profits to a charity. You might pick one that has a strong connection to your business and you may receive some good PR from local papers or through including it in company documents, encouraging others to do the same.
  • Choose ethical services: By supporting companies that share your social and environmental goals, your business will be aligned with ethical principles – and you’ll be helping another ethical enterprise to succeed. From opening a bank account to outsourcing PR, every decision counts.

Related: 4 ways small businesses can become more environmentally friendly

Alan Dobie

Alan Dobie

Alan was assistant editor at Vitesse Media Plc (previous owner of smallbusiness.co.uk) before moving on to a content producer role at Reed Business Information. He has over 17 years of experience in the...

Related Topics

ethical spending

Leave a comment