How ethics are good for business
Prompt: Drawing from this week’s course materials, explain in detail how ethics are good for business. Provide examples (good or bad) of your organization (past, present, or future).
Requirements: Write a 2-page (at least 500 words) essay in APA format. include a title page, appropriate citations, and references
How ethics are good for business
Ethics in business are vital as they determine what is right and what is wrong. Business ethics is determined by the company’s culture, which governs the decision and actions taken within that organization. It also applies to all aspects of business conduct on behalf of the individuals and the entire company. For example, providing extrinsic and intrinsic motivation sources for the employees to behave accordingly promotes positive ethics. Thus, it is vital to empower a strong sense of ethics at a personal level in every business. Therefore, this paper’s main aim will be to explain in details how business ethics are good for business.
Ethics are good for a business as they help business people become leaders who understand business ethics and live by them. In every organization, leaders set a positive tone for ethics (Ruddell, 2014). Thus, companies looking for a successful business often acquire a leader who sends a positive message about work ethics and includes ethical decision-making into the organizational culture. A good example is when the company’s chief executive officer takes the responsibility of executing layoffs and compensations (Ruddell, 2014). When an organization has to lay off the workers, and the CEO does not take part in the suffering, it is considered an unethical.
Good ethics in a business help reduce the transactions cost by encouraging prompt payment by large companies to small vendors. Reducing the cost through ethics help the employees not to steal, thus minimizing shrinkage (Gray, 2019). Therefore, conducting these ethical practices increases revenues. For instance, people are more likely to buy from companies with strong ethical values and recommend the company’s services to their friends. An increase in revenue also leads to improvement in qualities of the products as the employees will do things right.
Good business ethics also build a positive culture. For instance, the organization develops policies and procedures which encourage ethical actions, thus building a positive corporate culture. It is reported that an employee’s morale improves when employees feel protected against discrimination. The ethical policies put in place ensure that equal growth opportunities are provided. When employees feel good about their workplace, the overall feeling in the workplace becomes more positive (Ruddell, 2014). With these, it brings organization productivity and loyalty as the employees feel motivated.
Lastly, a good business ethical reduces the potential for lawsuits. Sexual discrimination in an organization is common and costs leaders their livelihoods when they do not deal with accusations and claims. For this reason, there is no business which is exempted from lawsuits concerning discriminations. Therefore, the organization must maintain policies and practices that protect their employees from discrimination or sexual harassment. An organization needs to remain consistent when executing these policies dealing with accusations to reduce the potential for lawsuits (Ferrell et al, 2019). It is believed that good ethics in a business are like the railroad tracks for the organization. Consequently, the organization needs to discover which ethical decision-making fits within their business and know what to do when faced with ethical dilemmas.
Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, 491-501.
Gray, D. E. (2019). Doing research in the business world. SAGE Publications Limited.
Ruddell, L. (2014). Business ethics – Faith that works (2nd ed.). WestBow Press.