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WHAT IS THE IMPORTANCE OF BUSINESS ETHICS TO AN ORGANIZATION?

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WHAT IS THE IMPORTANCE OF BUSINESS ETHICS TO AN ORGANIZATION?

 

For the business to have a positive appreciation and an enhanced brand value in the market, it is
quite imperative for the management and the employees to understand the Importance of Business
Ethics. And once the ethics are followed as business objectives and fundamentals, they become the DNA
of the brand in the most integrated manner.

And when we look at it drawing a larger picture, all the stakeholders of the firm including
customers, investors, and employees, they wish to get associated with the firm that is ethical in nature
and its overall business operations.

Let us discuss in detail the Importance of Business Ethics :

1) Attracts customers

Let us get the fact very clear and to the point. The business
can only succeed in the marketplace only if it is able to keep the
customers happy and satisfied to the core. It has to offer the
products and services that are high on the parameters of quality
and are manufactured using ethical business practices.

Plus the customer service levels and the overall experience also need to be quite ethical and
authentic in nature for the firm to attract and retain the loyal set of customers for the lifetime of the brand
in the market.

2) Attracts loyal and talented employees

It is very crucial for the management of the firm to realize and follow the Importance of Business
Ethics if it wants to attract the workforce that is talented and proficient. As one of the main considerations
of the job aspirants whilst joining any firm is that the company has to be ethical in its business practices.

Hence, the company has to be very clear with the job title, job description, roles, and
responsibilities, pay package, and follow ethical relationships with the employees in order to attract a loyal
and talented workforce.
  

3) Retain loyal employees

In continuation of the above-mentioned point, employees of the firm actually know the business
aims and objectives of the firm. To be very precise, they know and understand that if the business is
ethical in its product offerings, business dealings with the investors, customer service levels, and if the
company is treating its employees in an ethical and fair manner.

And they will stick around with the firm for a longer period of time only if the firm is ethical in all of
its business dealings and operations.

4) Attracts investors

Understanding the Importance of Business Ethics can make the firm attain its financial goals and
objectives. Taking forward the point, the firm always needs support from the investors in the market in
form of finances and funds during the times when the market is sluggish and firm needs to pump in the
money to attain its short term and long term goals.

And investors only invest their money with the firm that they trust and know that their money is in
safe hands and they will get their return on investment without any loss or any other discrepancies.

5) Competitive advantage

As mentioned above that when the management of the firm understands and follows the
Importance of Business Ethics there is a sure shot guarantee of success and growth. As making ethics as
it business fundamentals and objectives it attracts loyal customers, attract a talented workforce, retains
loyal employees, and has good financial investors and all of it have a cascading effect on the entire
business.

Amidst the tough competition and dynamic market, the firm is able to beat the competition with its
ethical offerings and business operations successfully surviving and thriving in the market.

6) Sound decisions

When the business is up and running, problems and issues are bound to crop up and act as
obstacles in the growth and success of the business. Either there will be issues within the employees of
the firm or there will be issues with the external parties such as investors and vendors.

And amidst all the issues and problems, the management of the firm will need to make some
decisions that can be quite tough and crucial in nature. And if the firm follows the ethics of business, the
decisions made and arrived will be fair, sound, and transparent in nature that will guarantee long term
success of the firm.

 
 7) Higher profits

One of the main objectives of the firm is to generate higher levels of profits so that it is able to
climb the ladder of success in a short span of time. And this objective is possible only if the firm
understands the Importance of Business Ethics.

And following the ethical way makes the firm win trust and faith of customers, investors, vendors,
employees, and other stakeholders of the firm. And it further results in the higher sales of the products
and services offered by the firm that makes way for elevated profits.

8) Attracts good vendors

Apart from having loyal employees and investors, the firm also needs the strong support of outside
and external parties such as vendors to provide quality products and services in the market. And vendors
include printers, advertising agencies, raw material suppliers, and others that play quite a significant role
in the journey of growth and success of the firm.

And the firm will be able to attract good and authentic vendors only if it deals with them in an
ethical fashion by making payments on time, fair and transparent dealings, and making them feel valued
and an integral part of the firm.

Conclusion:

As they say, there are quite many ways and possibilities for the firm to attain the pinnacle of
success and growth in the market but one of the most authentic and fair methods is to follow and
understand the Importance of Business Ethics.

They need to be followed in each and every facet and aspect of the business operation. At times, it
may get quite difficult for the firm, but in the long run, ethical business methods and operations make the
firm successfully thrive and beat the competition.

-       marketing91