8/16/22, 7:57 AM
The Importance of Business Ethics | Erich Merkner | Business
a The Importance of Business Ethics by erichmerkner | Aug 16, 2022 | Business, Erich Merkner
Business ethics determine what behaviors are acceptable for staff members in a business, helping improve their integrity levels and gain trust from investors and customers. Having proper business ethics is one of the most critical determinants of how successful a business will become. The main benefits of practicing business ethics in an organization are: Governing employee’s behaviors Employees in businesses with a well-defined code of ethics are most likely to adopt business ethics in their daily work. Employees of companies with strong ethical cultures are most likely to do their jobs with high levels of integrity and are more equipped to tackle ethical issues. Businesses should come up with ethics programs to be practiced by all departments and incorporate them into business operations. A well-curated ethics
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8/16/22, 7:57 AM
The Importance of Business Ethics | Erich Merkner | Business
program will define behavioral expectations and establish policies to deal with employee misconduct, which will help alleviate business risks by promoting better decision-making. Strong business ethics boost a company’s profitability Business ethics make a business gain trust from potential and existing clients. Customers prefer to remain loyal to businesses with a solid ethical culture instead of unethical ones. This customer support strengthens a company’s brand and increases its sales. Formulating a perfect ethics program puts a company in a better competitive position, resulting in more profits and better performance on the stock market. Unethical businesses have been found to experience losses, lose popularity, and suffer from failed business partnerships, leading to less profitability. Ethics are a vital skill for business leaders Following the evolution of the business model through technology, it has become easier for stakeholders to tell between ethical businesses and unethical ones. Enterprises are now committing more time to teaching their employees the importance of ethics since it is easy to lose their publicity through digital communication in case of any misconduct. After all, now it can only take one social media post to ruin a company’s reputation. It is believed that the importance of applying business ethics will only continue to grow, so many businesses are now keen on hiring highly integral people who will sell the right company image to potential clients and investors. Company leaders who practice business ethics will most likely motivate their employees to do the same, building a robust ethical culture.
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