Why are business ethics so important? Is it not enough to comply with the letter of the law and the rules of society? What advantages does the trading company offer?
These are all interesting questions. Many business owners feel that maximizing profits is the main obligation of the business. Other owners feel that it is also important to operate a business in a transparent and ethical manner. Both business management and business ethics are about making the right decisions. Does one have to exist to the exclusion of the other?
I think not, and these are the reasons why running a business ethically is important:
1. Send the right message to customers and clients. With all the options available today, who wants to do business with a shady and ethically challenged company?
2. Set the right example for company employees. The temptation to cut corners or behave illegally, immorally or unethically is reduced if employees are familiar with the company’s code of ethical conduct and the certainty of its application.
3. You can make your business a desirable place to work. Recruiting and then keeping high-quality employees is much less expensive than running a tourniquet where people come and go in large numbers.
Four. It establishes a prism through which a company views not only normal business transactions, but also the handling of extraordinary events or crises. When all the options have been considered, ask “What is the right thing to do?” it eventually becomes the basis for action.
5. Provides a clearer focus for the business. That clear focus is found not only in day-to-day tactical operations, but also in strategic planning of the company.
6. Help protect the interests of the company. Ethical behavior does not always insulate a company from lawsuits, bad publicity, or other negative and costly conditions, but it can certainly reduce the odds or mitigate harm.
7. It helps protect the interests of everyone with whom the company comes in contact. Will providers become more reliable if they know they will be paid on time? Will regulatory agencies be more helpful and accommodating? Will customers be more confident? There is an obvious higher probability that the above answers will be “Yes” with a company that is considered highly ethical than with one that is not.
8. Promote mutual respect and integrity. This can happen both within the company and with those with whom the company deals.
9. Promote accountability. This can happen not only within the ranks of employees, but also with top executives and owners.
10. You can build a reputation in the market that can be beneficial and sustainable. Isn’t this a desirable condition for any company? If not, it certainly should be.