Question

You are making the case to the advisory board of your company for a business ethics program. In addition to avoiding the damage to your company’s reputation that results from unethical behavior, what are the remaining benefits?

Answer 1

Ethics are not something that any company practices only to avoid damage to its reputation. Ethics in any organization. When any management philosophy is based on ethics, it sort of sets a tone for the day to day conduct of all its employees, especially the leaders in an organization. Leaders not only act in an ethical manner and guide employees by example, they also ensure that no team member of theirs behaves unethically.

This creates a culture in an organization which is based on strong values and that way the organization is able to attract and retain highly talented individuals. Further, this leads to increase trust for the organization outside as well a climate of trust is created in the organization and increases employees’ organizational commitment. The organization can proudly boast to all its members about open door policies and anti-discriminatory rules.

Being ethical definitely guarantees consumer confidence and loyalty too.