WHY YOU NEED BUSINESS ETHICS?
Ethics mean a person's moral judgement of right and wrong.In an organization ,decisions can be taken by individuals or teams,but the effect goes to the culture of the organization.Ethics build the foundation of success of a business by enhancing the image and creating the stability of the organization.
Organizational ethics strengthen the employee moral and loyalty with the management team and it drives directly to increase the profitability in short and long terms.The business reputation in the investors, other business and surrounding community is paramount and it represent whether the company is worthwhile investment. This will attract investors and maintain a higher company share price.Strong ethics also tend to attract customers to the organization's products and services with boosting sales and profits ( Horton ,2019).
To sustain the positive image, organization need to operate with ethical foundation and it relates to treatment of employees,fair practices in price and consumer treatment.This increase the employee satisfaction,productivity and reduce the employee turnover (Greenwood and Freeman, 2011).Also it attracts more employees ,which will lead to reduce recruitment cost and let the company hire talented employees.
More importantly, ethics vary from industry to industry and organizational culture to culture.Therefore understating and identifying the importance and the factors effecting the ethics of an organization is the key to success.Investors,customers,employees and all the stakeholders value the ethical operations of an organization which will help to maintain a higher reputation ,to avoid financial and legal issues ,and ultimately benefit all the stakeholders.
References
- HORTON, M. (2019) Why is business ethics important?, Available at: https://www.investopedia.com/ask/answers/040815/why-are-business-ethics-important.asp
- Greenwood, M.,Freeman, R. E. (2011) 'Ethics and HRM', Business & professional ethics journal , 30
The ethics in an organization creates through their organization culture, and it will impact on employee loyalty and reputation in the society. So better culture produces better outputs and market image. Thanks for sharing.
ReplyDeleteyes Jinendran. Ethics build the image of the company and hence customer and employee loyalty can be gained
ReplyDeleteStrong practices will make cultures in a considerable time where all employees will follow those practices by heart. It is important that everyone knows and understands it so the uniqueness will be maintained.
ReplyDeleteI think the leadership should create that awareness through all the levels of the organization.So everyone will be in the same page in terms of organization culture
DeleteEthics build the foundation of success of a business by enhancing the image and creating the stability of the organization.Thanks for sharing.
ReplyDeleteEthics concern an individual's moral judgements about right and wrong. Attract customers to the firm's products, which means boosting sales and profits. Make employees want to stay with the business, reduce labour turnover and therefore increase productivity. Thus it is very important. Thanks for sharing.
ReplyDeleteAgree with you Isuru .Ethics strength the employee moral and loyalty with the management team and it will be an added advantage for a company to direct them towards goals .Good job
ReplyDeleteYes.In this globalized business people think its so hard to follow business ethics. But even ethics can't bring quick wins, it can make a huge effect to the organization by creating a good image of the organization.
ReplyDeleteThe ethics in an organization creates through their organization culture, and it will impact on employee loyalty and reputation in the society. So better culture produces better outputs and market image. Thanks for sharing.
ReplyDelete