Role Of Business Ethics

Role Of Business Ethics

People who follow ethical behavior recognize what is right and wrong. They strive consistently to set a good example by following a good code of conduct.  In a business setting, following ethical behavior means applying the principles of fairness and honesty to a relationship with customers and coworkers.  The individuals make all the effort to treat others in the same way as they want themselves to be treated.

Ethical behavior needs to be followed in all aspects of your life and whatever job you work for, only then the work you do will benefit you in a good way. For instance, when you trade only, you should be honest and fair in all the transactions conducted by you. Choose a legit and trustworthy trading platform to assist you in the trading process.

Benefits of following ethics in business

Helps in building customer loyalty-  If the customers feel that they are being treated unfairly like they are being charged more, they will refuse to be a repeat customer.  If you want your business to be successful in long-term, then you need to build a loyal customer base as serving existing customer will not involve any marketing cost as it does I acquiring new customers. Organizations ethical behavior will create a positive image in the market which will attract new customers through word of mouth.

Helps in retaining good employees- All the talented workers wish to be fairly compensated for their dedication and work.  They aspire for career advancement on the basis of the work quality and not based on favoritism.  They wish to be a part of an organization whose management is honest about the reorganizations or layoffs are contemplated.  The chance to retain talented people is high in those organizations that are open and fair in all their dealings with the workers.  Employees, when they believe that the compensation methodology adapted, is not fair will not put in their best efforts or be dedicated to their work.

Avoid the legal problems-  There would be times when an organization would be tempted to commit unethical practices to earn a profit like not complying with the labor laws or environmental regulations, using the substandard materials,  ignoring the safety hazards if workers, etc.  The penalties you need to face are severe when you get caught in terms of legal fees or the sanctions or fines by concerned agencies.  Apart from this, there is also the negative publicity that one needs to face which is costlier than the fines or fees.

 

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