Why ethics in business is important
Ethics is the moral philosophy that is related to what is essential for a person and society. The word ethics is derived from a Greek term ethos which means character or habit. Business ethics is the moral belief that guides behaviours, values, organization’s decisions and each person in the business. Most of the business ethics requirements codified to laws. This paper will discuss why ethics in business is vital.
Firstly, ethics in management. The key to the long-term success of a business depends on the leadership of the organization and maintaining consistent management principles. The leadership team should ensure responsibilities such as ethical management practices, public relation, employee’s treatment and disperse of information to shareholders are performed accordingly for the success of the business.
Secondly, Ethics in business helps promote an environment and culture of respect and success.
It is true to say that workers who are contented with their working environment are more productive compared to those who re unsatisfied. Business ethics are vital in an organization as they help employees focus on the tasks and believe in themselves. Therefore, it leads to an increase in productivity, boosts employees morale, therefore, increasing the profits margin for an organization. Besides, satisfied employees affect the retention of highly skilled workers and turnover because unhappy employees are likely to seek out other job opportunities.
Lastly, an ethical organization attracts suppliers with the same value as of your business. Suppliers will associate an organization that treats its employees and customers very well. Also, an organization will have a positive public image when business ethics are incorporated that treat workers with respect, offer reasonable market prices and improves customer services. Therefore, it will help attract capable investors and increase the number of shareholders, thus increasing the profitability of a company.
REFERENCE
Hopwood, S., 2018. The Importance of Business Ethics. Leadership and management,
Goodpaster, K., 1991. Business Ethics and Stakeholder Analysis. Business Ethics Quarterly, 1(1).