BENEFITS AND ADVANTAGES OF BUSINESS ETHICS

BENEFITS AND ADVANTAGES OF BUSINESS ETHICS

 

Ethical behavior is essential for long term success of business, both from micro and macro perspective. If a business organization follows business ethics then it will result in certain benefits: -

 

·      Ethical business can give better service to the society.

·      Such a business creates goodwill in the minds of customers and public.

·      It creates good environment in organization.

·      Ethical environment helps to increase productivity and positivity of employees.

·      Ethical business follows legal formalities and therefore such a business can enjoy freedom from legal and other issues.

·      Management of an ethical business is respected by the whole people both inside and outside the business.

 

Create Value and Better Image

Business functions among different groups of people, like employees, owners, suppliers, creditors, customers, pubic etc. Everybody like to be associated with an establishment which is honest and socially responsible. Employees feel proud of being part of it; suppliers feel honored as they get opportunity to deal with such a reputed organization; customers are satisfied as they get quality product at reasonable price, Government is also happy about such a business unit, as it creates income and provide employment to a lot of people. Image and goodwill of an ethical business increase and it will help the business in its further growth and development.

 

Increase Credibility of Business

Credibility of a business organization is vital on its growth. A business organization which follows ethics in its business, can create a positive attitude among others. People like to buy products of such a business. It creates credibility in the public eye. Such a business can raise capital easily either through public issues or through loans from financial institutions.

 

Satisfied Customers

Ethical organizations ensure value for money spent by their customers. Such organisations always respect their customers and therefore ensure quality products at reasonable price. It means that, such ethical business never over-price their products with an intention to make maximum profit. It creates satisfaction among customers.

 

Satisfied Employees

An ethical organization never exploit their employees, in order to minimize their expenses or to maximize their profit. Such organizations treat their employees as valuable human resource and never compromise their safety and rights. Such business can ensure the best work environment inside the business, and these steps brings in satisfaction among employees.

 

Maximize Profitability

When employees are convinced of ethical values of the organization, they will be happy to be part of it. Such an attitude reduces employee turnover and increases their productivity.   Moreover, employees hold the organisation in high esteem, by upholding quality in all aspects. Higher quality products and best image of the business unit among customers will increase demand and profitability.

 

Better Decision Making

Ethical management always take into consideration, various economic, social and ethical aspects while taking decisions. Decision making will be better if the decisions are in the interest of the public, employees and company’s own long term good.

 

Protection of Society

Ethics can protect society in a better way than even the legal system of the country. Where law fails, ethics always succeed. The government cannot regulate all activities of the business that are harmful to the society. If business units practice ethics instead, it will be the best option to ensure protection of society. Therefore, all business units should follow ethics in all their decisions and practices including competitions.