Why Is Ethical Business Communication Important?
Building strong client relationships, avoiding misunderstandings with team members, validating and
respecting all employees: organizations thrive when the channels of business communication are healthy
and wide open. And, when business professionals are well-prepared by a top-notch business writing
certificate program, they understand how people communicate. They also recognize the importance of
ethical business communication is important and how it is integral to business success.
What Is Business Communication?
In the simplest terms, business communication is the sharing of information within the context of doing
business. It can be communication between colleagues in a company or between an individual or team
and stakeholders outside their organization. It can take traditional or innovative forms, from face-to-face
meetings to social media posts. The essential goal of business communication is to keep people
connected. Communication that maintains high ethical standards and links participants meaningfully and
fruitfully requires openness, honesty, and consistency.
Types of Business Communication
Business communication can be broken down into four general categories.
Managerial or Downward Communication
Messages, information, and assignments that come from the top or those in supervisory positions are
considered downward communications.
Upward Communication
Upward communication is information being passed from an employee to a supervisor or manager.
Examples include questions (for instance, about what a supervisor’s expectations are for a certain task),
weekly status reports, and daily updates.
Lateral or Horizontal Communication
When working collaboratively with other departments or teams, employees send lateral, or peer-to-peer,
messages to keep each other informed about progress and modifications.
External Communication
External communications are messages or other information an employee sends to anyone outside their
company or organization, such as reports to stockholders, news releases, advertisements, and
correspondence with vendors.
Methods of Business Communication
In the past, channels for communicating with fellow workers, management, or customers were more
limited than they are today. Business communication took the form of face-to-face conversations,
one-on-one telephone calls, memos and letters, and print or broadcast advertisements and press releases.
While businesspeople still use these methods of communication, new information-sharing tools continue
to emerge. Emails and memos may be the most common ways to connect today, but companies have
adopted other methods as well, including:
- Virtual meeting platforms
- Text messages
- Social media, both internal and external
- Podcasts, blogs, and website articles
The interconnectivity of modern forms of communication, especially those in written form, creates a
dynamic that older forms did not have. The click-to-read attachments and interlinks available in the
digital world can lead the reader almost seamlessly from one element to the next, like a memo attached to
an email, or an email with a direct link to the company’s home page or online catalog.
It has become increasingly important, therefore, that each piece of the communication chain is produced
carefully and ethically.
Why Is Ethical Business Communication Important?
When considering how business communication upholds ethical standards, certain characteristics come to mind: reliable, truthful, complete, accurate, consistent, and authentic. Making ethical business
communication a high priority within an organization by putting these characteristics into practice can
pay off in employee retention, successful collaborative efforts, and customer satisfaction.
The following are some areas in which ethical business communication is important.
Sharing Information
Sharing information is the main purpose of business communication. Internal communications may report
the most recent executive decisions, provide an early-bird look at a new facility, or deal straightforwardly
with rumors about layoffs. While corporate security and proprietary information preclude the distribution
of some information, employees stay engaged more often when they feel that the messages they receive
are honest and as complete as possible.
External messages, such as advertisements and annual reports, may provide both existing and potential
customers and investors with descriptions and updates about new products or services. These more public announcements must offer truthful insight into the company’s products, services, and success while
maintaining discretion and confidentiality when required.
Building Trust
Whether the news shared is positive or negative, employees, clients, and stakeholders appreciate open and trustworthy communication that follows ethical business principles, avoids vague generalities, and reflects that the company knows the limits of its expertise. Members of a business community are more likely to be willing to share their ideas and concerns with an organization that maintains a high degree of integrity.
When open, honest and ethical business communication is a two-way street, employees feel free to be
transparent. They trust that they will continue to be well informed about the condition of the company and
their role in it. The two-way-street model applies to customer and investor relations as well. When asking
for opinions and feedback, companies must take the ethical approach of not only asking for feedback but
also actively listening to responses. When people know their voices are heard, they are more likely to
remain loyal to products and services.
Gathering New Information and Ideas
Creating convenient avenues of communication and practicing the art of active listening may lead to
unexpected and successful ideas arising, often from unlikely sources. Information gathering may be as
formal as a series of focus groups and town hall meetings or as casual as a suggestion box. But unless the message is heard and acted upon, those asked to participate will find little reason to respond to future
inquiries or even continue a business relationship.
Increasing Efficiency
Employees develop a stronger sense of responsibility and autonomy over their assignments when they are confident that the sources of the information they need are accurate, reliable, well publicized, and readily available. They work more efficiently when they don’t need to search for the best supplier or sales
contact, and they feel no need to second-guess information coming from colleagues, management, or
other departments.
Streamlining Collaboration
With the improvements in telecommunication services and the higher costs of overhead and commuting,
the number of employees who work remotely has grown. Companies have been quick to update their
business communication systems to accommodate off-site employees and staff. These direct lines of
communication give colleagues, teams, and departments the ability to collaborate even when they cannot
meet in person.
Whether they are in person or remote, however, collaborative efforts are only as strong as the
communication between and among the team members involved. Shared information must be complete
and up-to-date, creating the opportunity for ethical interactions and relationships.
Providing a Platform for Diverse Voices
Effective leaders include diversity and inclusion in their business frameworks and ethical philosophies.
They understand that diversity in the workforce will boost both creativity and the bottom line, according
to Forbes. They can welcome and create opportunities for open conversations between and among people of different backgrounds, genders, ages, ethnicities, and sexual orientations. They can also help develop teams of people with diverse areas of expertise and years of experience and embrace an ethical business communication model that gives power to diverse voices.
Satisfying Customers and Shareholders
Employees who are well informed and feel valued and managers who are connected to their teams are
more engaged with their work and produce better products and services. As a result, customers enjoy
high-quality goods, and shareholders continue to invest.
What Are the Liabilities of Poor or Unethical Business
Communication?
Just as strong and ethical business communication enhances every aspect of a business or organization,
poor or unethical communication opens the door to problems, both internal and external.
- Failure to uphold ethical standards in business communication can result in legal consequences.
Privacy breaches, misinformation, and plagiarism are all forms of unethical communication that
can lead to legal action and even monetary damages. For example, some companies may have
confidentiality clauses that can result in a breach of contract lawsuit when broken. - Unethical business communication can reduce collaboration among colleagues. Evidence that
information is inaccurate or incomplete can lead to mistrust and weaken team member
relationships, which can negatively affect efficiency and the spirit of collaboration. - Poor communication can also lead to stress, which may result in high employee turnover and low
engagement. Communication of any kind that is not truthful and consistent can even adversely
affect employees’ mental and physical health, causing increased absenteeism and decreased
productivity.
Strengthen Your Skills as a Leader in Ethical Business
Communication
The quality and consistent maintenance of an organization’s communication system reflects not only its
business savvy but also its commitment to ethics and excellence.
Learn how you can strengthen your skills in ethical business communication by earning the Certificate in
Ethical Principles, Critical Thinking, and Writing for Today’s Business from Suffolk University’s Center
for Continuing & Professional Education. In a fast-paced world, knowing how to keep employees,
managers, shareholders, and customers connected and informed is key to finding business success.
Prepare to play an important part in ethical communication leadership and make a difference in your
company’s future.
Recommended Readings
Ethical Dilemmas in Business and How to Address Them
How to Use Ethical Principles in Business Writing
The Impact of Lifelong Learning on Your Health
Sources:
Apollo Technical, “11 Remarkable Workplace Communication Statistics to Know in (2022)”
Behavioral Sciences, “Work/Life Relationships and Communication Ethics: An Exploratory
Examination”
Chanty, “6 Steps to Choosing Best Mediums of Communication for Your Business”
Cutting Edge PR, “Why Business Communication Is Important for Businesses”
E+M: Economics and Management, “Ethics in Business and Communication: Common Ground or
Incommensurable?”
Forbes, “Are You Really Listening or Just Waiting to Talk? There’s a Difference”
Forbes, “Diversity Confirmed to Boost Innovation and Financial Results”
Hirect, “11 Reasons Why Business Communication Is Important”
Hivot, “How Effective Communication Can Reduce Workplace Stress”
Houston Chronicle, “About Communication & Ethical Issues in Business”
IBM, “Communication Skills for Business Leadership and Success”
Illinois CPA Society, “An Ethical Approach to Diversity and Inclusion”
ItemA Conference, “A Study on Ethical Communication in Business”
Nextiva, “What Is Business Communication and Why Do You Need It?”
Smith.ai, “4 Types of Business Communication and How They Benefit Your Business”