In a business, the relationship between coworkers and customers should be based on the principles of honesty and fairness, or it is called as ethics in business. Ethical employees will treat other persons in contact as they want to be treated themselves.
Ethics in business is important for some reasons, which can increase sales or increase the business’ reputation. With all business initiatives, the ethics applied leads to the company’s profitability in short and long term. Ethical behavior would bring significant benefits to a business, such as:
The reputation of a business from the surrounding community, other businesses, and individual investors is paramount in determining whether a company is a worthwhile investment. If a company’s reputation is less than perfect based on the perception that it does not operate ethically, investors are less inclined to buy stock or otherwise support its operations.
- Attract customer loyalty
A loyal customer is one of the keys to business success because serving an existing customer will not require marketing cost. A company with ethic on its business operation creates a more positive image in the marketplace, can attract new customers through word-of-mouth referrals. On the other hand, unethical practice will make customers leave your products, lose the opportunity to obtain new customers, and dissatisfied customers share their bad experience more quickly.
- Maintain Employees Loyalty
Every skilled and talented employee want to be properly compensated for their dedication and achievement. They want their work to be appreciated based on the work quality and not on favoritism. Companies which are fair and open with employees have better opportunity to maintain their qualified employees. It will reduce labor turnover and increase productivity. If the employees do not trust the company, more often they would not perform their best job.
- Positive Work Environment
Ethical employees are mostly considered as the teamwork rather than as individuals. It means that they are able to develop a positive relationship with coworkers and managers trust them with confidential information. Employees who lie, or the worst is caught in stealing will damage their opportunity for advancement within the organization and face the risk being fired.
- Avoid Legal Problems
In business, reputation is one of the most important assets and most difficult to rebuild when it is broken. Unethical practices in business to gain higher profit, such as ignoring the environmental regulations or labor law, not fully complying worker safety will cause the penalties such as fines, sanctions, or punishment by the government. The negative information will damage the company’s reputation and the resulting profit will fall.
Consistent ethical behavior significantly increases the positive image and as consideration to potential investors and shareholders. A business must be committed to operating an ethical foundation relates to employees treatment, respect the environment and create fair market practices.
