Implementing Ethics in the Workplace Can Improve Your Restaurant’s Finances

“Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical issues that arise in a business environment,” says Wikipedia.1 So what are business ethics? and ethical issues that can arise in a restaurant business? Let’s expand on that point to examine how the following ethical guidelines can help a restaurant founder increase sales and profits in the restaurant business.

The following four principles of ethical behavior can make a difference for any restaurant.

• Environmental Responsibility: Following the green trend that is currently gaining momentum can help make the world a better place and add value to the business by attracting customers who care about the environment. Using organic ingredients, supporting sustainable fishing, using recycled paper, reducing waste, and conserving energy are just a few of the fastest growing trends in the restaurant business. Implementing sustainable practices can attract eco-conscious consumers who could become loyal customers and advocates.

• Fair Trade: Fair Trade is ethical trade that supports fair wages and working conditions for producers in developing countries. It empowers fishermen, workers and farmers, in addition to protecting the environment. Fair Trade Certified products, most commonly cocoa, bananas, coffee, sugar, and tea, are grown and harvested in smaller quantities, resulting in fresher, more flavorful food. Fair Trade crops cannot be genetically modified and must be grown using sustainable methods. When consumers choose fair trade products, they not only gain access to quality products, but also make a difference in the lives of the people who grow food. For restaurants, offering fair trade products attracts the attention of potential customers who care about the sustainability of healthy eating. In addition, the adoption of such practices generates higher profits for restaurants.

• Teamwork: It doesn’t matter if you serve the best food in town or if you have a great location; customers won’t come back if your staff is incompetent and unfriendly. To build a strong, dedicated and happy team, a restaurant owner must show respect, loyalty and compassion to their employees and value them highly. According to Small Business magazine, “An ethical company demonstrates respect for its employees by valuing opinions and treating each employee as an equal. Employees who work for a loyal employer want to maintain the relationship and will work harder to do so.” two

• Ethical Relationships with Clients: According to Jana Matthews, founder and CEO of Boulder Quantum Ventures, “Focusing on your clients reinforces your responsibility to the marketplace. Your decisions affect your people, your investors, your partners, and ultimately your business.” Ultimately, your customers. Serving all these people is part of your ethical responsibility. Selling to your customers in the short term not only puts your ethics at risk, but it also puts the long-term health of your company at risk.” 3

For restaurants, being ethical means being transparent, consistent and committed. Ethical behavior can benefit companies by cultivating productivity, fostering strong teamwork and a positive atmosphere within the team, and making employees want to stay with the company, which can reduce job turnover and increase productivity. Being ethical can also lead to desirable publicity and a favorable reputation for companies. Managing ethics in a business can also keep share prices high, which can attract investors and protect the company from a takeover.

Implementing workplace ethics into a daily practice will create a culture of respect, high ethical standards and dignity in your restaurant.

References:
1. Wikipedia: Business Ethics
2. Small Business: Six Characteristics of an Ethical Business by Cindy Phillips
3. Eight Elements of an Ethical Organization by Jana Matthews, 2002