Business ethics is the set of policies and practices that guide companies in making decisions regarding finances, deals and negotiations, corporate social responsibility and more. A business without a strong ethics code can find itself in legal trouble, financial difficulties, and moral dilemmas. Good business ethics assure customers, employees and other stakeholders of a company’s commitment to doing the right thing. It can affect employee retention and sales when a brand is unable to gain trust. This can lead to increased scrutiny by government agencies, and vendors may question whether doing business with you is worth it. If you don’t have the trust of other businesses, they will either buy your products from other sellers or sell their best deals to others. Good financial planning is essential to a positive income. If you want to pursue a career in the business world, you will need to know how business ethics work and how you can improve this skill.
You may not realize that ethics play a larger role than you think in your everyday business dealings. Ethics are not laws that businesses must follow. They are instead a set guiding principles which organizations should adhere to if they wish to have a good name. Why is it important to have a reputation of fair play?
Business ethics affects reputation
Brands no longer belong to the companies that they represent. Brands are increasingly seen as belonging to employees, consumers and stockholders. More than 42 percent of consumers say they will not do business with a brand if it does not agree with their views or actions regarding a social issue. More than 60% of consumers say that their buying decisions are influenced by the ethical values and authenticity of a company.
Business ethics sets the tone for employee behavior
Leadership is a good example to employees. When a CEO makes a financial mistake to get a contract, and this is a known company secret, other employees may be encouraged to follow suit. You need to be a good boss if you want to get your employees to behave.
Good Business Ethics Aids in Negotiations
A company’s positive reputation encourages other companies to negotiate with them. Nobody wants to make a deal with an organization that might not keep its promises. Both businesses can negotiate better and stronger if they understand the rules.
The Bottom Line and Business Ethics
If an organization behaves unethically, it can damage its reputation and consumers might find another source of products. Enron and Wells Fargo suffered from bad behavior, as did Monsanto. Microsoft and Dell are rewarded and recognized for their ethical conduct ,, proving you can be both a good corporate citizens and make money at the same.
What to Know About Business Ethics
How can you improve your ethical standards to make better business decisions? Begin with your faith. Integrate the principles of Christian business ethics in your professional life to remain motivated and serve others, not being moved by greed or wealth. Create a professional moral compass to guide you in difficult and challenging situations. This will help you preserve your reputation, as well as that of your business. You should decide which behaviors you will accept and those you won’t. Don’t hesitate to ask questions and hold others accountable if you see wrongdoing.
If you are ready to bring your ethical principles to business, you should choose a program that shares the same values as you. Business programs can include management and ethical principles classes. The program explores the ethical dilemmas that may arise in the workplace. It also examines the different perspectives and philosophies that are available to resolve these issues.
Contact Limestone University if you are interested in developing your business skills and improving your ethics. Our business degrees, such as those in marketing, economics, finance and more, can help you to start a rewarding career. You can study law, ethics, management and more in each program. Request more information by clicking the button.