Question

2 paragraphs on The importance of business ethics

Answer 1

The Importance of Business Ethics

Business ethics refers to the application of ethical values in a business environment, it deals with the Code of conduct at an organisation. It The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit. Below are the some of the major implications of having Business ethics in place.                                       Developing Credibility: An organization that is believed to be motivated by moral values is respected in the society even by those who may have no information about the working and the businesses or an organization.                      Ethics builds business profits. The decrease in risks and costs mean that the output is likely to be higher than the input hence the company makes a profit.                                                                                                           Bonds People and Leadership: An organization driven by values is revered by its employees also. They are the common thread that brings the employees and the decision makers on a common platform. This goes a long way in aligning behaviours within the organization towards achievement of one common goal or mission.      Improving Decision Making: Decisions are driven by values, values also reflects on your decision-making process. Leads to Long Term benefits: Organizations which abide by ethics and values are profitable in the long term though in the short term, they may seem to be incurring losses.                                                                                            Good ethics spikes up the morale of the employees. Good business ethics involves rewarding your employees. When an employee is rewarded, he/she works harder leading to more profits.

Businesses which are not following any kind of ethical code or carrying out their social responsibility leads to wider consequences. Unethical behaviour may damage a firm’s reputation and make it less appealing to stakeholders. This means that profits could fall as a result. Ethics is important to businesses for many reasons. Businesses can increase sales or increase their reputation. Having an ethical business is essential if you want your business to be a real success in the long term. Good business ethics keep your customers satisfied, they encourage people to buy in to your business. Business ethics and profit go hand in hand. An ethically oriented business with desire to dominate its market niche is likely to reap a lot of benefits. Unethical company, however, is doomed to fail even if they started with high profit records. Ethics are there to make relations better and stronger.