Some of the
tangible benefits that accrue a company for operating on an ethically sound
- Profitability: The first direct dividend of ethical business operation is ‘profitability’. A company that is based on sound business value is more likely to be profitable than a company operating on corrupt practices.
- Serving of Concern is Assured: Being profitable will ensure that the company stays around for at least next twelve months. It is the desire of every business entity to be around for a longer time. Ethical business practice is the way to flow if you and your business truly value advancing concern.
- Sustainabiity Without sustainability, investments in business will simply not yield fruit. And without running your business on sound ethical values, sustainability will not be achieved in businesses and investments.
- Competitive Edge ‘Quality saves money’ is a popular saying in accounting, business and investment. You will save the cost of reworking defects borne out of using poor equipment and employment of sharp practices. Again, this will give you and your investment (business) easy access to the heart of the general public if you build your business on ethical values and principles.
This philosophy is not only applicable in general life interactions. In fact, it is true in the world of business. Your customers and other stakeholders in the business community will naturally come to love and appreciate your company and the product you have to offer if they discover that you uphold business ethics in your business operation.
Good business ethics will definitely reflect on the quality of your products, because you have the satisfaction of your customers at hand while you were producing your products.
By upholding good and sound business ethics in one’s business operation one can watch one’s business soaring high
Q.4. What are the advantages of business ethics policy, which are beneficial to a company and its employees’
Ans. Ethics have always been an important part of corporate world. Some organisations have strict rules when it comes to their ethics. Ethics is a set of rules that people in the organisation follow with strict adherence. It brings lots of discipline in the organisation. There are lots of responsibilities, which go into handling company’s goals and objectives.’A company needs to be ethically prepared to attain a good reputation in the market and it is very important from their survival point of view.
The multinational companies always follow a fixed set of rules, which the workers in the organisation adhere to. Business policies and strategies in an organisation are set in accordance with their work culture and some companies manipulate the policies based on their work culture and ethics.
Some of the advantages of business ethics policies in an organisation are as follows:
- The business ethics helps the investors and customers of the company to practise themselves the ethical values practised in the companies they partner with. It helps them achieve a common business goal
- The ethics in an organisation helps to bring out superior employee performance in terms of productivity and establishing cordial relationships amongst the employees and the management. Ethics helps built in morals amongst the employees of a company.
- For a company’s growth, reputation is one of the most important possessions a company should have in order to stand in the market amongst its competitors. If the core management of the company is ethical based, it sends out a strong message in the market as well.
- Ethical education in an organisation brings in international regulatory developments, which provides strong financial and legal incentives for bigger corporations to grow and develop their business.
- The companies are regularly upgrading their ethical programs to encourage the employees to aim for bigger goals so as to maximise the profits of a company. The ethical policy has been proved beneficial to companies especially during turbulent times. It provides integrity to an organisation to stand by its rules and regulations.
- The business ethics is also said to empower the employees for working hard and achieving bigger results. Ethics helps to build the morale of the company and develop teamwork amongst the employees to increase the productivity. Ethical policies of a company are set so that everyone in organisation work in a similar way as they get used to it.