In the business world, there is a lot of emphasis on results and not always much focus on ethics. However, ethics are extremely important in the business world. Running your company with integrity is a great way to inspire your employees and encourage others to work with you. But why is that? Today, we will look at three reasons business ethics are essential to the growth and development of a company.
- It Influences Employee Production and Morale
The leaders generally create the atmosphere of a company. If a business is run in a respectable and ethical manner, employees are more likely to take a positive attitude toward their work. This leads to a higher level of production and higher morale among employees. Word gets around; when employees know they will be treated well at a particular organization, they are more likely to want to work there. This helps to attract quality workers. Treating workers and consumers alike with respect brings out the best in everyone.
- It Helps Your Relationships with Consumers and Investors
When people put their funds into any organization, whether it is for a small or large purchase, they want to feel that the people they are doing business with are trustworthy. Likability helps to build trust with clients, and acting in an ethical manner is one of the best ways to create that level of assurance. No one wants to invest in a company they feel may end up wasting their time and funds. Following a code of ethics shows responsibility, which is a major factor in gaining trust.
- It Improves Your Bottom Line
Companies which violate ethical standards are more likely to be fined, endure lawsuits and lose business. In addition, there will be more turnover and finding new employees costs the company both time and funds. If consumers are alienated, it results in a loss of business. Companies which do not pay their taxes can be fined by the IRS. It is simply the better and cheaper option to act ethically and abide by the law.
Practicing good business ethics helps in a number of ways. It is essential for an organization to have a code of behaviour to follow. Doing this will improve morale, boost the reputation, and increase profits.