Question

Why would a company really care about maintaining an ethical work environment? What might happen in a company if there is an ethics breach?

Answer 1

In company or any other Organisation's, there is a need of management. As by management, all the things are done through others like human resources etc. Manager is the person who motivate, allocate human resources for getting things done through others to acheive organisational objectives and goals.

In company not only management is necessary to acheive organisational objectives and goals, but there are many important things which helps to acheive goals and objectives. One of these is Ethics and Ethical work environment. So, that all the companies goals are acheived ethically without any illegal work. By this, social reputation of Company increases and society also gives good response to the company.

Management of each and every resources are managed for acheiving organisational goals and other objectives like Ethical work environment and Society works and reputation.

MEANING OF ETHICAL WORK ENVIRONMENT-

Ethical work environment is the work environment in which principles of honesty, loyalty and fairness to the relationship with coworkers and customers. Ethical environment makes an effort to treat everyone equal, fair and due respect with everyone they come in contact.

Reasons why ethical standards and Ethical work environment is important-

1) BUILD CUSTOMER LOYALTY- As we know in today's environment customers are king of markets. Customer's want their full satisfaction with the product quality and it's price. Product should be in good quality and it's price must be reasonable. So, these are acheived only by allocating resources effectively and efficiently to produce goods under quality standards and efficency so that the cost of making be minimised and it's total price for customers should be reasonable for them. By this technique Customers satisfied and attract towards the company and customers trust is build.

2) RETAIN GOOD EMPLOYEES-  For Ethical work environment, there is urgent requirement of good employees with ethical quality like honesty, integration etc for the company's ethical environment. By good employees, the management would be good and it will help us to acheive organisational goals and objectives. Good employees are the key for the company's success.

3) POSITIVE WORK ENVIRONMENT- By ethical enviornment, there is positive work environment in the business or Company as there is no unethical works are done, no illegal works are done due to all the financial informations and performance are evaluated with full honesty and Ethics.

4) AVOID LEGAL PROBLEMS- As by adopting ethical standards and work environment, there is no such acts are performed which is against the law and all the management works in the business or Company is legal . So, no problem regarding legal arises and company works are done smoothly without any problems.

So, due to Ethical work environment, everyone in the Organisation will try to maintain the Ethics and will not involve in the immoral works. So, the information to the users will also reliable, trustworthy and the decisions for the future will also be effective for the company.

If there is an ethics breach in a company, the company will not run smoothly and successfully as due to Ethical work environment the company intends to attract more and more customers because of the company's ethical standards and honesty, it increases Customers satisfaction and retain of more good employees for the company's better performance and it also give Company positive work environment by avoiding legal problems. This all Ethical things makes Company run smoothly and successfully but if unethical works are performed they will not attract customers and it will down the goodwill of company and unethical works are done by employees, it means there is some employees which are not honest and ethical, due to which Company will face lots of problems relating to legal problems and it's financial statements and performance will automatically goes down and Company may goes in loss.