As seen in the current series of The Apprentice, business does not always involve a high standard of business ethics! However, we believe that a fundamental part of good business lies in the fair and ethical practice of business across the board. Without a sense of right and wrong, companies hardly ever succeed in the long term as they cannot build relationships of trust with any other corporations, employees or the customers.

All entrepreneurs have to work with other people, and this will only work if both sides follow an appropriate moral code allowing them to establish and maintain a relationship. Business ethics specifically involves negotiation skills and results in ‘win-win’ scenarios; in which both companies are satisfied with the outcome. This is extremely important when building up contacts for the future, for example if you build a good relationship with suppliers in which you get a discounted price per item for a very large order quantity, both sides will be happy with the arrangement and it is mutually profitable. If business ethics were to be ignored, the approach of the company would be to push for the maximum quantity at the lowest possible price: an act that would certainly make the supplier unlikely to renew the deal. This would actually result in a bigger loss for the company than if the first route was taken, as although they would achieve a cheaper price in the first year, they would have difficulty securing a repeat in the following year. This example shows that business ethics is mutually beneficial and can result in long-standing business arrangements that can make a company very successful and result in high returns year-on-year.

In most entrepreneurial education schemes and business degrees, business training includes an education into the world of business ethics. This encourages young entrepreneurs to have the right attitudes for success in business, and ensures that they make friends instead of enemies in the business world. Other important aspects of business ethics include environmental and social concerns, which can add substantially to company image and can dramatically increase popularity. Everyone has their own moral code, and it is important to follow it while trying to succeed in business. Accepting bribes or negotiating unfairly will not pay in the long-term and can result in a negative company image. Many companies have fallen after a deal turned sour or scandals were revealed!

Although The Apprentice is one of the most popular programmes about business and entrepreneurship on television, it does not always accurately portray the world of business. Many of the competitors on the show appear to have little or no ethical values; however, you will find in the real world that corporate ethics are vital to the long term success of any company.

Lord Alan Sugar’s comments on Engineers in business has received a lot of media flak, mostly deserved. However there is an inkling of truth in his statement. He may not have met an engineer who could turn his hands to business simply because the majority of engineers simply choose not to do the day to day running of  business.  The few who do include some spectacularly successful entrepreneurs, like Henry Ford, James Dyson, Steve Jobs, Bill Gates, Michael Bell etc, etc.

Engineers make very good entrepreneurs and business leaders in technology businesses, where their knowledge and vision allow them to see far beyond the limited technological horizons of most other professions. Indeed the subsequent replacement of the technological entrepreneur by a “business administrator” has led to some spectacular business declines, reversed only when the original entrepreneur returned – Apple and Dell Computer are classic examples.

So what else is stopping the budding engineer/technologist from going on to be successful entrepreneurs?

Fundamentally it is far easier to learn appropriate business skills than to learn engineering and technology skills; after all the best MBA can be picked up in a year or less. Business training courses are available throughout the world and many qualified engineers step up to the challenge each year. However it is an expensive proposition and not high on the priority of many an engineer who in general want to get on and “do things”: practise engineering, rather than waste too much time in the seemingly boring world of business.

Many good engineering Universities recognise this dilemma and have added business courses to the engineering curriculum so as to introduce engineers to world of business, and in so doing demonstrate the value of business “nous”.

The even more switched on Universities use modern computer simulation technology to allow engineering students to run virtual businesses and prove to themselves that they have the requisite skills. An example is the Executive Business Simulation, one of the most advanced computer simulations of a manufacturing business available.

So many more engineers are now being trained in the art and science of business, many with the help of simulation, and are emerging into the workplace more than able to take on the challenge of entrepreneurship and business leadership.  This should please Lord Sugar.