Why ethical business practices are becoming non-negotiable for women entrepreneurs
For years, ethics in business was more of an “if we can achieve it” type of thing — a standard dreamt of once the bottom line was in place.
But in an informed, values-friendly economy, ethics in business is beyond a badge of honour; it’s the language of those still standing. For women in power, women looking to lead, and those building in every corner of the global ecosystem, integrity and longevity are more than a buzzword. It’s the future.
The rise of the conscious consumer
Today’s consumer (especially the millennial and Gen Z consumer) is interested in what brands actually stand for. They want to ask: Was this product sourced ethically? Was its maker paid a living wage? Is this company making a positive difference in the world?
This movement toward conscious consumption is also especially valuable to women-led businesses, as so many of them are inherently community-focused, empowering and out to do good. In fact, it’s widely known that female founders start companies with impact in mind, and when you think of impact, you’re likely to think of fair labour practices, environmentally sound business operations and full transparency in supply chain.
Why women entrepreneurs lead the way
For years, studies have shown that female leaders are more likely to care about the social and ethical impacts of their decisions. It may be a matter of core values or life experiences, or the realisation that they have a broader responsibility to their stakeholders. Whatever the motivation, female entrepreneurs are blazing the trail and building businesses that care.
But good leadership isn’t just…well, it is just good — but it’s also good for business. By definition, businesses that operate more ethically, authentically and transparently are better positioned to retain customers, attract the best team members and ward off the legal and PR nightmares all startups fear. And in a world where online reviews and social media can make or break a brand overnight, these advantages are critical.
Balancing profit with purpose
Granted, it’s not so simple. It’s hard enough to run a successful company without adding the layers of complexity that come with sustainable sourcing or supply chain audits. However, it doesn’t need to be all or nothing. Living by ethical principles can be the result of small, thoughtful changes — minimising waste, granting more flexible working conditions or working with vendors that share your values.
For those who wish to multiply their impact, there is an emerging field of frameworks and tools to measure and enhance their ethical footprint. For instance, Ecovadis, a platform that provides sustainability ratings that cover environmental, social and ethics practices. These tools can help women-led businesses to prove to the world that they walk the walk and to gain credibility and trust amongst partners and clients.
Ethics in the age of accountability
In the days of greenwashing and performative activism, it’s clear that transparency is more important than ever. It’s not enough to take a stance on your homepage. More and more, customers want proof. They want to know where you source, they want to know your impact data, and they want to see that they are making purchasing decisions with a company that is going to hold itself accountable.
This is where ethical frameworks and transparency come into play. Setting policies around sustainability, diversity and labour practices isn’t just about making sure you’re following all the laws. It becomes a part of your company culture. When employees and leaders are held to a standard of respect and responsibility, that definitely flows out… both in how your employees interact with each other and within the company culture, and it tends to be something that resonates with customers. It’s also going to be something that sets you apart as a company.
The emotional payoff of doing the right thing
Not that there isn’t something in it for you. I mean, think about it. Imagine the kind of business you want to build. One that helps other people, that supports the environment, that constantly affirms the dignity of the men and women who create everything we buy and sell. Doesn’t that feel great?
For many of us, making a living as women already goes beyond the simple act of getting paid. We want to do something to answer the call of the world. We want to give something of ourselves, to do something, to make something that either rights a wrong, eases someone’s pain, improves the quality of life — even if only in some small way — of the people around us. And when the heart of your business lives or dies on your ability to manifest those ethics — well, that’s got to feel amazing!
What you can do today
If you’re just getting started on your path to ethical entrepreneurship, here are a few steps you can take:
- Audit your supply chain: Where do your products or materials come from? Who makes them?
- Assess your hiring practices: Are they equitable? Do you offer equal pay for equal work? Flexible schedules?
- Share your goals publicly: Whatever they may be (reducing your carbon footprint, phasing out plastic, donating a portion of sales, etc.)
- Get certified: Look into third-party services that help you evaluate and share your commitment to ethics and sustainability.
- Be transparent: be honest if you fall short and vow to do better.
A future women can be proud of
The future of business is ethical, sustainable and inclusive, and women are building it. Whether you’re growing a side hustle, hiring your first employee or designing your own product, this is where you can find your community and build what’s next.
Because in the end, however high you climb, it’s how you build the mountain that matters — and who else is standing with you on top.
