Business Ethics Matter in Business Performance
Sean Hopwood
President at Day Translations, Inc. >>> We break down cultural barriers & support all languages! Professional Translation, Interpreting & Localization Services
All business owners are concerned in maintaining their bottom line in the black. This is to ensure that the company can continue operating, grow and achieve success. Business success is affected by different factors other than financial statements. How well your business performs depends on business ethics, management philosophy and organizational culture. Practicing positive business ethics is one of the most important features to ensure success over time.
Ethical practices
Practicing business ethics is not only the responsibility of management. It is the responsibility of all the stakeholders within the company or business as well.
Management ethics
The company's leadership should be the first to implement and follow ethical practices, in order for subordinates to follow. The leaders must set the atmosphere for how the company will operate daily. If the company follows ethical practices, management will find it easier to direct its staff members by example. They would be able to guide them in making the right decisions that will be beneficial to the employees and the company.
Practicing good business ethics improves the company's reputation over time. It also helps attract talented individuals. Management leaders and subordinates create a stronger bond, which cements the company's stability.
Worker ethics
If the company's leadership is ethical, workers follow their example. They become more productive and take responsibility for their actions. They think and decide for themselves and the organization and they tend to be loyal to the company.
Benefits of business ethics
You assure the long term and short term profitability of the company when you institute good business ethics within your company. It helps build a solid reputation for your company. If you are looking for investors, your reputation is one of the things investors would check.
Business ethics provide you with the guidance to treat your employees well, have a social conscience and support environmental programs. Ethical business practices lead you to also support fair market practices by treating consumers better and charging competitive prices.
You cannot use the lack of consumer demand to follow ethical business practices. It is a leadership decision. If you have good values to work on, you will elect to follow good business ethics.
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