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Why Business Ethics?




Ethics in Leadership

The management team sets the tone for how the entire company runs on a day-to-day basis. When the prevailing management philosophy is based on ethical practices and behavior, leaders within an organization can direct employees by example and guide them in making decisions not only beneficial to them as individuals, but also to the company as a whole. Such ethical behavior results in the ability to attract and retain highly talented individuals and the establishment of a positive reputation within the community. Running a business in an ethical manner from the top down also encourages a stronger bond between individuals within the management team, further enabling stability within the organization.


Employee Ethics

When management leads an organization in an ethical manner, employees will follow in their footsteps. With business ethics as a guiding principle in all facets of operations, they make better decisions in less time, which increases productivity and the overall employee morale. Additionally, they are more likely to perform their job duties at a higher level and more inclined to remain loyal to their organization. Evidently, the entire company benefits when employees complete their work with integrity and honesty. 


Business Ethics Benefits

The importance of business ethics reaches even far beyond employee loyalty, morale and the strength of a management team bond. As with all business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term. The reputation of a business among the surrounding community, other businesses and individual investors is paramount in determining whether a company is a worthy investment. If an organization is perceived as operating unethically, investors are less inclined to buy stock or otherwise support its operations.

Consistent ethical behavior is clearly associated with an increasingly positive public image – and there are few other considerations as important to potential investors and current shareholders. To retain a positive image, businesses must be committed to operate on an ethical foundation relating to treatment of employees, respect to the surrounding environment and fair market practices in terms of price and consumer treatment.