The first order of business — for most businesses, anyway — is making money. That’s not news.
But these days, with a plethora of options on the market, many customers vote with their wallets. That means choosing to support businesses that align with their values, sometimes even at greater financial expense. A 2024 customer survey from PricewaterhouseCoopers (PwC) found that over 80% of customers say they’ll pay more for sustainably sourced goods, for example.
If you’re a small business owner, chances are you, too, can see the benefit of running a business with integrity at the heart of its operations. (After all, you’re also a customer — not to mention a human being.)
Fortunately, it’s completely possible to run a business that’s both ethical and gainful, despite how often words like “cutthroat” are thrown around in this industry. Here are four ways to implement ethical business practices, ranging from the simple and low-cost to the slightly more complicated and effortful (but proportionately rewarding).
1. Embody transparency
Yes, there are such things as trade secrets — but practicing a position of transparency in your business practices, both internally and externally, can help increase trust on your team and in your customer base alike.
Living out this principle can look many different ways depending on what kind of business you run and your specific operating model, but it can include financial transparency with investors, salary transparency with employees, and honesty with customers, especially in situations where something’s gone awry. Even the worst customer experience mishap can often be rectified with good old-fashioned honesty: in what went wrong, why it went wrong and how your organization will work to fix it.
2. Put people first
It’s a long-held business adage that as an entrepreneur, people are your most important resource.
And the good news is, small business employers tend to have the upper hand in this regard: According to a 2024 study from business management tool Homebase, employees of small businesses are substantially more likely than those of larger companies to say they feel valued and supported at work. They’re also more likely to say they feel like they can be themselves and feel connected to their employer.
When there are fewer people in a company, each individual has more room to shine — but as a small business owner, it’s your responsibility to nurture a company culture that allows for maximum brilliance.
While a higher salary is always a fan favorite among employees, for employers looking to help their workers feel supported, there are plenty of other avenues that can be nearly as valuable (and less expensive), including more opportunities to learn new skills, a respectful relationship with upper management and — increasingly — the opportunity to work remotely.
3. Give back to your local community
The thing about people being the most important business asset there is? That’s true on both sides of the customer service counter. If your small business is a brick-and-mortar operation serving a specific geographical area, your local community is literally the reason you’re making a living — and even if your business is digital and worldwide, the people nearest your headquarters help make your operation possible.
Finding ways to give back to your community can drastically increase your trust and reputation, not to mention make your city a nicer place to live. Along with donating products or services to good local causes and sponsoring local events, another easy way to give back to your local community is to incentivize your employees to volunteer their time — for instance, by offering paid time off for volunteering.
4. Consider becoming a B corp
B Lab — itself a nonprofit — offers the B Corporation certification, which picks out businesses truly committed to sustainable, ethical practices. And with major brands like Athleta, Ben & Jerry’s, Patagonia and Kickstarter bearing the B Corp stamp, customers have come to recognize this powerful symbol.
Becoming a B Corp, however, is no simple feat. To win this distinction, companies must undergo a multifaceted impact assessment process. The process can take as long as six to eight months for small businesses. Still, for those who know their commitment to integrity already shines through their business practices, getting this official seal of approval can go a long way toward increasing customer trust and brand reputation.
Ethical small businesses don’t just build stronger revenue streams from more loyal customers — they also build a better world. As we’ve seen, some of the most important ethical practices for small businesses cost almost nothing — except, perhaps, a shift in perspective and intention. What you get in return can be truly priceless.