We now recognize the Importance of business ethics because it is good for a business to be ethical.
As an ethical image for a company can build goodwill and loyalty among consumers and clients. The following are the importance of being ethical:
There will be honest and fair business practices.
It protects - Investments of the consumers and investors.
Good ethics leads to good business.
Retention and generation of loyalty among consumers are possible.
There will be transparency in expirations and ensure that both potential and existing consumers are created.
Needs and the wishes of the stakeholders can be balanced.
A positive image can be created among the public comes from showing appropriating values.
It helps the company to maintain its position of being a market leader.
It protects or improves the reputation of the organization by creating an efficient and productive work environment.
It protects the organization from significant risks and helps grow the business.
Prevention and reduction of criminal penalties.
Being ethical has a clear impact on business profits. Many researchers identified that there is a clear relationship between CSR and Corporate Financial Performance (CFP). Modern theoretical and empirical studies point out that organizations can strategically engage in socially important activities to boost profits. Given that the company’s shareholders may value the company’s social intentions, the company can realize other benefits from these actions, including increasing the company’s stature and the capacity to generate profits by diversifying its product, the ability to attract more highly qualified personnel or the ability to extract a premium for its commodities. There is substantial evidence to support this profit-generating ability. More than half of the consumers surveyed by Havas media lab want to reward responsible companies by purchasing their commodities. 53% would indeed pay a 10% premium for those commodities.
Integrity is the aspect of being sincere and having strong moral rules and moral uprightness. It is a personal decision to hold oneself consistent with moral and ethical norms. In business ethics, we refer to integrity as the truthfulness or accuracy of one’s actions.
Being ethical in business means keeping a high level of personal virtue. This is how the company can earn the trust of others. In some ways, the value statements about integrity are to remind us that integrity is not just a corporate responsibility, but a personal one. In this definition, integrity means having a steady character that is described by a set of thoughts, words, and actions. Sometimes it calls for moral courage to do the correct thing; it takes inner strength to live up to the mistakes and accept when a fault has been made. Despite immense pressure to act otherwise, ethical business managers live by morals they believe in being right, rules to maintain truthfulness, and fight for their ideas without sacrificing their honor for just to get a task done.
The state or quality of being loyal is allegiance to commitment (commitment to a superior or to a group or cause.) or duties. Loyalty builds trust. The company should never place loyalty above principles or use it as an excuse for unethical behavior. The company can show their loyalty but they should always make an independent judgment and never use the information they have gained in confidence for their own advancement.
Being fair is to treat people equally without favoritism or prejudice. In business, fairness means that any action carried out should be fair and just. Being ethical means they are committed to fairness in all that they do and do not seek to exercise their power for an unfair advantage or use indecent methods to gain a competitive edge. They also never take undue or unfair advantage of another person’s difficulties and mistakes. Being ethical means that they are committed to being fair, employing justice in their decisions, and treating all people equally, with tolerance and acceptance of diversity. Being fair also means being open-minded, admitting to mistakes when they have made one, and adjust their beliefs and positions when it is appropriate.
This means having a positive and genuine concern for others, as well as a thought of empathy. An ethical business manager is caring, compassionate, and friendly to both consumers and staff and tries to undertake actions to reach their goals while causing the least amount of damage or inconvenience and the greatest amount of good. Being caring means understanding that there will be an impact on every stakeholder following a decision, and they always consider the financial, emotional, and long-term business consequences of an action. They don’t simply discount the needs of others.
Being ethical in business means keeping a high level of personal virtue. This is how the company can earn the trust of others. In some ways, the value statements about integrity are to remind us that integrity is not just a corporate responsibility, but a personal one. In this definition, integrity means having a steady character that is described by a set of thoughts, words, and actions. Sometimes it calls for moral courage to do the correct thing; it takes inner strength to live up to the mistakes and accept when a fault has been made. Despite immense pressure to act otherwise, ethical business managers live by morals they believe in being right, rules to maintain truthfulness, and fight for their ideas without sacrificing their honor just to get a task done.