Perception is everything when it comes to business, and the good news for the automotive industry is that its reputation has improved greatly over the years. A generation of business owners has worked hard to improve the image of this industry. Yet, there are still some businesses that perpetuate the negative stereotypes of shops by making customers feel they have been taken advantage of. Much work has been done, but there is always room for growth.
The most proactive way to change a negative perception is to bring the ethics discussion to the forefront and address it head on. Then, you’ll have a framework to develop a code of ethics for your shop or strengthen your existing one.
Areas of concern
Shops and the technicians within those shops are faced with ethical dilemmas every day. Some decisions are made without a second thought, but all decisions have long-term consequences. Just a few of the common ethical issues in this industry include:
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Shop practices. The way a shop is run is a reflection of the management. Your shop practices can be a major ethical stumbling block. Price gouging, recommending unnecessary services and repairing with substandard parts, unprofessional conduct and workplace bullying are just some of the ethical concerns that will affect your customer base. What is the perception of your shop in your neighborhood and community? When a customer walks in the door, do they get a good feeling about your business?
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Poaching. Stealing technicians from other shops is one way to get a quality technician with the right experience. Yes, it’s a common and often accepted practice in this industry, and the technician shortage doesn’t help. Poaching employees may seem inevitable, but is it ethical to steal from your competitors? There are other ways to find technicians, including entry-level. Grow your own!
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Workplace safety. Is workplace safety a No.1 priority in your shop? If it isn’t, it should be. Ethical shops put an emphasis on maintaining a healthful environment for workers and educate their employees about ways to improve. Are you training your employees annually on the hazards of the workplace? Not only is it the law, but also it’s the right thing to do. An accident-free workplace should be the topmost goal, and that starts with training everyone, not just upper management.
- Use of company resources. Occasional personal use of time and equipment is generally accepted in most industries as long as it doesn’t affect job performance or disrupt the workplace. But the misuse or abuse of time, materials, equipment or information can be an ethical challenge. Shop managers should pay careful attention to the habits of their employees, and this starts with modeling good judgment and behavior regarding company resources. Managers should also feel empowered to resolve issues related to time and resource management.
The reasons behind ethics
It probably goes without saying that you should run an ethical shop. Doing the right thing is the right thing to do. But does it really affect your business’ bottom line? In a word, yes.
What are the advantages of running an ethical shop? Most important to your bottom line, your business will retain its customers. A customer who has had an experience where they were treated honestly, where someone went above and beyond, and where they received a quality repair will be a repeat customer. They’ll tell others about their good experience, and you’ll have additional customers.
On the other hand, if they have a bad experience, many will immediately post on social media and tag your shop about what transpired. Bad publicity can ruin a business in the short-term, but that review lives on years later and can be hard to overcome. One technician’s dishonest behavior or bad attitude can affect your shop for years.
Establishing trust is key to keeping your customer base. Thinking about ethics ahead of time will help you and your employees prepare for instances that test decision-making and ethical boundaries. When everyone understands the benefits of making the right choices, they can consciously work to make better choices, act appropriately and avoid problems.
Establishing a code of ethics
A code of conduct, or ethics, is a document outlining professional standards expected of all company employees and representatives.
Public companies are legally mandated to have a code of conduct and required to make it public. Most industry associations have a code of ethics and publish it for their employees or members. Does your shop have a code of ethics?
Establishing a code of ethics can be as simple as writing down what is important to your shop and getting feedback from others, including employees in all areas of the business. This code should clarify your business’ mission, values and principles, linking them with standards of professional conduct. An added benefit of having a written code of conduct is that it becomes a benchmark against which an individual’s and the overall shop’s performance can be measured.
You should include items important to your business such as complying with federal, state and local laws; treating customers fairly, openly and honestly, without discrimination; advertising in a straightforward manner; explaining vehicle issues clearly to customers, distinguishing between existing problems and preventive maintenance; using only high-quality merchandise and allowing inspection where necessary; taking care with customer vehicles; communicating with customers and informing them of the status of their vehicle repair; and resolving problems promptly and standing behind warranties.
Ideally, your code of ethics will be a guide for the everyday ethical decisions everyone working in the shop faces. It should be written clearly and in simple language, and respond to real-life questions and situations. There are plenty of free resources on the internet for creating a code of conduct, including templates that provide a framework. Just fill in the blanks and your shop’s particular details, and you are on your way. When you have your code of ethics completed, post it on your website so customers can see what you are all about.
If your shop already has a code of ethics, is it sitting on a shelf somewhere collecting dust? A new year is a good time to update it to reflect what’s happening today. Make sure every employee has a copy and acknowledges they have read it.
Next steps
Once your business has a code of ethics in place, management is responsible for cultivating an environment where everyone can feel comfortable to speak their mind, particularly with respect to ethical concerns. Work to create an open and supportive environment where employees feel empowered to open a dialogue and don’t feel like they are “tattling” on a co-worker.
Follow up is key. If an employee reports a concern, investigate the issue and take appropriate and swift action. This should include not only personnel issues, but also safety hazards that need to be addressed. Your employees should know they won’t be retaliated against if they raise concerns in good faith.
Ethical behavior starts at the top. Managers need to demonstrate the importance of your code of conduct. Changing behavior or creating an ethical culture does not simply happen; it is the result of clear and direct communication of expectations and is shown by example.
But just because ethical behavior starts at the top doesn’t mean that employees are exempt from upholding the code. Ethics should be a part of daily work for each person in the shop. Everyone is responsible: if they see something, they should say something.
