Humans are social beings; we cannot exist in a solitary setting. Being a part of society means forming social and personal relationships and acting in accordance with some unspoken rules. Though right and wrong are very subjective terms, human beings have a set notion of rightness, which usually involves doing things ethically. Ethics plays an essential part in our lives in all spheres, be it academics or professional. Ethics in business has become a crucial topic of study, apart from finance and accountancy, and people pursuing a degree in business management are taught about ethics. So, what exactly is business ethics, and why is it important? Read on further to find out.
Ethical living is always encouraged. That is the reason we are taught subjects like moral science. Society wishes to inculcate righteousness in young minds. The importance is business ethics is just an extension of the same thought process. Conducting business ethically makes your customers look up to you. You can read various business ethics essay topics to understand the issue better. There are also free essay examples available which you can check out. With the internet boom, people have access to everything. So inculcating healthy work practices is a way to keep up your organisation’s good name. In the upcoming sections, we discuss in detail the benefits of a well laid out business ethics plan.
What is business ethics?
Firstly, it is essential to understand what business ethics is. Business ethics definition would be a code of ethical conduct used in situations arising in a business environment. It is different from business legalities because the law lays down the framework for legal and illegal actions. But business ethics focus on the ‘right’ course of action on a moral and ethical plane. It essentially deals with what you would choose to do, even if it is not technically illegal.
What we have in a bottom line benefit?
Statistics reveal that a business that has a strong ethics program in place would be able to earn more profit than a business that they think is unethical. Since customers are looking for a safe place to put their money in, they highly depend on the goodwill of a company. Business ethics help in establishing a loyal customer base, and it naturally helps in increasing the profit margins of an organisation.
Business ethics is an essential skill
Business ethics is not entirely separate from ethics. To be ethical in a business environment, you need to be honest in other spheres of life. This is why businesses try to hire people who are not only good at their job but also moral and principled. It is an essential skill that every professional should have, irrespective of their field of work. Students should be taught ethics as a part of their education.
Customer loyalty
For any business, customers are God. Ultimately, the customer will consume your goods or services, so it is their good books which you need to be in. People are essentially good, and are naturally attracted to goodness. The bad may be loud and more prominent, but at a given time, the number of good people will always exceed the number of bad people on the earth. So if a business performs its functions ethically, without any fishy actions, people would naturally be attracted to it. Research has found that people are more likely to promote and support an ethical business than they are likely to support a company they think is not honest.
Business ethics drives employee behaviour
The kind of business ethics an organisation follows, sets the type of ethical behaviour the employees would display. A company with a solid work ethic would inspire its employees to do their work with integrity. Just like a good professor in a college or a University encourages their students to do their best, a righteous management team would inspire their employees to work honestly, too.
Conclusion
After reading the article, there is no doubt that business ethics is essential. It not only helps to build up goodwill (which is a necessary asset for all businesses), but it also affects the behaviour and performance of employees, which is equally crucial for any business. It also helps in creating a loyal customer base for the company. If you are new to the world of business management, don’t underestimate business ethics. It is an important topic that you need to learn about, and you will reap the benefits in the long run.
