Business Ethics: 4 Reasons It's Essential To Your Company
“Ethics is about how we meet the challenge of doing the right thing when that will cost more than we want to pay. There are two aspects to ethics: The first involves the ability to discern right from wrong, good from evil, and propriety from impropriety. The second involves the commitment to do what is right, good, and proper. Ethics entails action; it is not just a topic to mull or debate.” John C. Maxwell
Sure, right and wrong are subjective. Each person chooses a different path based on his or her own moral backbone. But in a business environment, behaving in an ethical manner and having to make the ‘right’ decisions will not only impact company profit but the external image and internal culture as well.
Company culture and ethics are aligned. So much so that work environment morally influences whoever makes the big decisions in your company.
Therefore, it's essential to create an environment that encourages employees to make decisions that reflect well on the business.
Below are four reasons why business ethics are so important to the future of your company.
1) The right employees
No one wants to work for a business that doesn’t value them or their efforts. Employees enjoy working for a company known to work in an ethical manner, because it’s fulfilling for their own moral standards, and gives peace of mind, as they know what to expect from their workplace.
So, an ethical work environment means happier, more satisfied employees.
Not only will you be able to maintain loyal staff, but a company known for its ethical code will attract good people as well. With the right people on board, who align with company culture and business ethics, your business is set up for long-term success.
2) The right customers
Refusing a business path that may provide significant short-term profit for a more ethical option will draw a loyal client base in the long-term, thereby attracting the right people to sustain your business in years to come. Customers enjoy knowing ethical business practices have taken place. For example, they will spend more buying free-range pork than caged, if it aligns with their morals about animals.
3) A better reputation
Reputation is key to business ethics, and therefore, business success.
In this information ready world, where anyone can source facts with a few touches of a keyboard, being seen in an ethical light is so important. For example, a company sourcing materials from Indonesia while treating staff ethically, giving a good living wage and putting back into the community has a light global footprint. Eventually, these business ethics will become synonymous with the brand, and customers will view them as key selling points, even if it started as a simple issue of morality.
4) Less risk
Behaving in an ethical manner is risky as a person, and it’s even riskier when involving an entire company and the lives of your employees. Unethical behavior will damage a company’s reputation with customers, employees, business partners, and investors. It could create problems with the law, with individuals wanting to sue, or employees upset about a breach of contract.
Transparency of information is essential for creating and maintaining good business ethics. Lack of transparency can reduce moral, damage culture and foster distrust or disrespect for leaders. A lag in information can also affect an employee’s ability to do their job, for example, an uninformed employee who isn’t aware of the standard business ethics of their company will lack confidence in decision-making, and may make the wrong choices.
Employees need to feel like their company isn’t keeping secrets and making the right moral decisions. So, having excellent communication will help maintain the characteristics of a company’s culture alive.
Try Kast. A mobile app designed to be a one-stop platform of information, encouraging a transparent and communicative workplace.