Why businesses should act ethically

Share via Email Programmes such as The Apprentice do little to encourage people to believe that business is motivated by anything beyond profits. While no one appreciates hearing "I told you so", it seems that my words continue to ring true today. A globalised economy, a diverse workforce and a public more alert to ethical issues has meant that the landscape in which businesses operate is all the more complex.

Why businesses should act ethically

We also held a blog competition about why ethics is important to business. Decisions taken within an organisation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company.

The decision to behave ethically is a moral one; employees must decide what they think is the right course of action.

Stay ahead with the world's most comprehensive technology and business learning platform.

This may involve rejecting the route that would lead to the biggest short-term profit. Ethical behaviour and corporate social responsibility can bring significant benefits to a business. For example, they may: When working for a company with strong business ethics, employees are comfortable in the knowledge that they are not by their own action allowing unethical practices to continue.

Customers are at ease buying products or services from a company they know to source their materials and labour in an ethical and responsible way.

Why businesses should act ethically

For example, a coffee company which states all their raw beans are picked from sustainable plants where no deforestation has occurred, by people paid a good living wage, in an area where investments have been made to ensure that producing the coffee for a foreign market has not damaged the local way of life, will find that all these elements of their buying strategy becomes a selling point for their final product.

A company which sets out to work within its own ethical guidelines is also less at risk of being fined for poor behaviour, and less likely to find themselves in breach of one of a large number of laws concerning required behaviour.

Importance of Ethical Conduct in a Business | ashio-midori.com

Maintaining the promises it has made is crucial to maintaining that reputation. Businesses not following any kind of ethical code or carrying out their social responsibility leads to wider consequences. This means that profits could fall as a result.

The natural world can be affected by a lack of business ethics. For example, a business which does not show care for where it disposes its waste products, or fails to take a long-term view when buying up land for development, is damaging the world in which every human being lives, and damaging the future prospects of all companies.

Ethics is important to businesses for many reasons. Businesses can increase sales or increase their reputation.Employee Conduct. If employees feel they are expected to act ethically and are treated ethically by their employer, they are less likely to engage in unethical behavior that would hurt their employer.

5 Reasons Your Business Should Be Socially Responsible Mark Horoszowski Mark is the Co-founder of ashio-midori.com, a global platform connecting people who want to volunteer their expertise with social impact organizations.

Jul 27,  · The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to .

why should businesses act ethically? An organization has to be ethical in its behaviour because it has to exist in the competitive world. We can find a number of reasons for being ethical in behaviour, few of them are cited below: Most people want to be ethical in their business dealings.

Employee Conduct

Jul 27,  · Businesses not following any kind of ethical code or carrying out their social responsibility leads to wider consequences. Unethical behaviour may damage a firm’s reputation and make it less appealing to stakeholders.

Page 3: Why should a business act ethically? Businesses have great potential to transform people's lives and to alleviate poverty through generating economic growth. They produce goods and services that customers want and they create jobs.

The Importance of Ethics in Business | Investopedia