Profit-Based “Ethics”: The Mindset Behind It

Inside The Mindset of Profit-Based “Ethics”

If I interpret ethical leadership as profit-based, then I will make decisions that maximize profits. Sometimes those decisions may ignore the long-term consequences of my decisions and I may choose to cut corners now in order to increase short-term profits, without considering how that may affect others.

How the Mindset Impacts Day-to-Day Business Decisions 

How does a profitability mindset affect my decision-making? A cheaper ingredient, added in order to increase profits, may end up being identified as unhealthy or even cancerous. If my ethics are profitability-focused, then as long as it’s not illegal to use the ingredient right now, then I believe that I made a “good decision” to use it while I can  – until it is banned.

Getting Beyond Profit-Based Ethics

The trouble with using a profit-based definition of “ethics” is that by using profitability as a way to make decisions an entire spectrum of other issues is conveniently ignored. In order to avoid this trap and to move away from profit-based thinking, it’s important to broaden the variables we consider when making business decisions to include:

  • The impact of my products and services on consumers and society
  • The impact of my business operations on the planet
  • The long-term unintended consequences of my choices
  • The changing consumer mindset toward ethical business and avoiding harm
  • The erosion of customer confidence in my products, services and ethics

 

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For more, see Linda’s book 7 Lenses and the 21 Question Assessment: How Current is My Message About Ethics?

7 Lenses is a Bronze Axiom Business Book Award Winner in Business Ethics41cEVx-Tu4L._SY344_BO1,204,203,200_
2014  Bronze Axiom Business Book Award Winner 
About 7 Lenses
 
 
Info@LeadinginContext.com  @leadingincontxt  @7Lenses

© 2011 Leading in Context LLC 

 


About Linda Fisher Thornton
Leading a movement to help leaders and organizations Unleash the Positive Power of Ethical Leadership™, Linda is CEO of Leading in Context, a 2014 Top 100 Thought Leader in Trustworthy Business Behavior and author of 7 Lenses (foreword by Stephen M. R. Covey).

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