Why is business ethics so important? Isn’t it enough to comply with the letter of the law and the rules of society? What’s in it for trading company?
These are all interesting questions. Many business owners feel that maximizing profits is the company’s primary obligation. Other owners feel that operating a business in a transparent and ethical manner is also important. Both business management and business ethics are about making the right decisions. Does one have to exist to the exclusion of the other?
I think not, and here are the reasons why it is important to run a business ethically:
1. Send the right message to customers and clients. With all the options available today, who wants to do business with a shady and ethically challenged company?
two. It sets the right example for the company’s employees. The temptation to cut corners or behave illegally, immorally or unethically is reduced if employees are familiar with the company’s code of ethical conduct and the certainty of its application.
3. You can make the company a desirable place to work. Recruiting and then keeping high-quality employees is much less expensive than running a turnstile where people come and go in large numbers.
Four. It establishes a prism through which a company views not only normal business dealings, but also handling extraordinary events or crises. When all options have been considered, asking “What is the right thing to do?” it ultimately becomes the basis for action.
5. It provides a clearer focus for the company. That clear focus is found not only in day-to-day tactical operations, but also in the company’s strategic planning.
6. Helps protect the interests of the company. Ethical behavior does not always insulate a company from lawsuits, bad publicity, or other negative and costly conditions, but it can certainly reduce the chances or mitigate harm.
7. It helps protect the interests of everyone with whom the company comes into contact. Will providers be more reliable if they know they will be paid on time? Will regulatory agencies be more helpful and accommodating? Will customers be more trusting? There is an obviously greater chance that the above answers will turn into “Yes” with a company that is considered highly ethical, than with one that is not.
8. Promotes mutual respect and integrity. This can happen both within the company and from those with whom the company deals.
9. Promotes accountability. This can occur not only within the ranks of employees, but also with top executives and owners.
10 You can build a reputation in the market that can be beneficial and sustainable. Isn’t this a desirable condition for any company? If it isn’t, it certainly should be.
