Ethics in business is the implementation of procedures and policies regarding topics like bribery, fraud, corporate governance, discrimination, and human treatment in everyday situations.
Business ethics guarantees a balance between professional ambition and the interests of others to prevent anyone from harming third parties.
Like a personal environment of an individual, a professional environment also has a set of ethical standards capable of guiding a person through decisions, the consequences of which can affect various aspects, including the well-being of the organization.
Professional ethics has its primary objectives to guarantee principles such as trust, involvement, and appreciation of the work carried out by an individual in any area and type of activity of the company. These principles are useful for an individual to make the right decisions in the face of the dilemmas that appear in the performance of daily tasks.
Сompanies’ ethical decision-making can be frequently associated with four performance areas:
1. Trust: Customers provide a set of resources to the business with the expectation of obtaining a product or service that satisfies some type of need. It is the responsibility of the company to respect this trust, that is, not to try to obtain an illegitimate advantage in the amounts received or in the product/service offered in exchange.
2. Credit and payments: The position that a company takes in the market also depends on its respect for the financial commitments assumed. Charges assumed with human resources, payment terms defined with suppliers, etc.
3. Reputation: The implementation of ethical values is truly a competitive advantage and an intangible asset of the company. The choice of the company for being a fair and socially responsible enterprise can effectively mean an increase in demand compared to other companies that do not have the same reputational status.
4. Respect for public guidelines: Company actions in public guidelines can actively promote and contribute to social welfare and provide additional justification for corporate actions. Respect for these types of guidelines is more beneficial when they are aligned with important causes and designs, such as improving sanitary conditions and disease prevention.
The application of ethical principles in business and personal decisions can be improved and developed. For this, a set of solutions must be adapted to each work context to maximize the best results.
Like several other organizational work areas, ethics is also valued and can be the object of specific training actions. Knowing what the effects of the actions and decisions taken are and how they impact the lives of other people is always a good way to start. Interpersonal relationships must be valued in the sense that they are the best vehicle to retain customers and keep talented employees.
Benefits of ethics in business:
For many voracious business hunters, ethics can be an uncomfortable concept, rivaling and hindering ambition and business savvy. However, ethics represents a crucial factor that any organization that wants to be successful and stay on top must possess.
In particular, ethics is a capacity that each businessman should develop to decide between what is right and what is wrong. It is a value that must be present in all areas of life and business. Here you will learn several benefits of ethics in business that are important:
A good reputation
A good reputation translates into trust. By acting well and operating correctly, all your customers will have a good image of your brand and will prefer the product they feel they can trust.
Improves the relationship with your customers
In order to build a long-term relationship with customers and achieve customer satisfaction, every business must be based on ethics. It is keeping the focus on leaving a lasting and positive impression in the minds of people who are buying from you.
Increases employee retention
Every employee wants to remain in that job where their leader values and respects their rights and contributions. To retain more employees, it’s necessary to know how to build trust, respect other people and not fall into a trap of thinking that you are always right no matter what. Being able to listen to people who work for you and knowing how to support them in difficult work or life situations guarantees that your employees will value you and work as long as they can.
Manages to transmit valuable qualities among your employees
When ethics is the axis of your business culture, anyone who is part of the organization must tend to make rational and correct use of company assets. The use of company resources for personal benefit is assumed to be a breach of ethics, and therefore, of the company’s culture.
Creates favorable conditions for investment
When a business promotes the value of ethics in its operation, it is creating an investment-friendly environment. Every investor will place their money in a company that suppresses unfavorable actions.
In a work environment that operates under integrity, your staff tends to feel more motivated because they know that individually and collectively they are acting correctly. The more workers trust the company, the more effective and productive their performance is.
Maintains quality standards
When ethics sets the course for a business, it is committed to delivering quality products and services to the final consumer. The conviction and concept that you have as a business owner about ethics are what will be reflected in the quality of the product. If everything inside your company is functioning well, there is no need to worry about quality standards.
Definitely, behind every business, there should be a business owner who defines the destiny of the enterprise based on this essential value — ethics. Any business that is only dedicated to generating money, without observing ethical values, may succeed, but this success will be ephemeral.
From this moment on, you should always know how to act under an ethic that contributes to good and develops a culture for your business. Before making any professional decisions in your business, always evaluate, review and ask yourself: Would I want that product or service that my business offers? Is this the deal I expect to get? “Do not do to others what you do not want them to do to you” is a philosophy of life that you need to stick to.