The Role and Importance of Business Ethics in Society
Business ownership entails having an unavoidable deal with people and all that concerns them. Businesses encounter problems more often and find it difficult to handle them. The challenges involved in operating a business include behavioral control with customers from both internal and external sectors, management of confidential information and ensuring that the business operation is in line with the requirements of the law and legislation.
Ethical principles forms the core rules when making the business decisions and not just a factor that can be left out. Ethics can be defined as the values that provide guidance when making decisions on choices and actions in our lives. Ethically people are required to accept loss without having to avoid it through cheating, lying or stealing. People who do not accept loss they go to whatever levels to avoid it hence finding themselves acting unethically. A business is always destroyed by acting unethically to cope with difficult situations.
The importance of business ethics has increased globally and every company has realized its significance in their success because it is the key determinant of the customer confidence to the company. A great emphasis has been put across to encourage companies to enhance and improve their legal and ethical practices when carrying out their business. All companies whether private or public, small or big are being held responsible for every action they do. This is due to the demand by the society for high standard social responsibility from all businesses. The society should create a culture of ethical behaviors, norms and accountability which will be of great benefit to the whole society. Ethical values are beneficial to the society as ell as the business itself.
The benefits of good business ethics have been experienced by those companies whose managers use ethical values when making business decisions. Among those benefits is the goodwill that a business develops in the long run as a result of being perceived as transparent, trustworthy, reliable and straightforward. Goodwill is something that is earned from the external sector of the business through maintenance of ethical factors as the key principles in all business operations.
A business that conducts its operations in an ethical manner has a more probability of having high and consistent profits than that that operates in unethical values. A business that upholds ethics does not struggle to win and find customers in the market because their actions are evident and can be seen by the general public. The most commonly indicators used by the public is the quality and prices of the goods and services produced by the company. A company that is ethically right will always produce its products according to the required standards. This is opposite of the corrupt businesses which find ways that are unethical to cut costs so as to take advantage of the customers.
Ethical practices also assure the going concern of a business since a business that is profitable will always be expected to survive in the business for many years. Every investor would want the invested business to operate as long as possible. To achieve a long life span of the business then the business must be conducted in an ethical manner. The other key factor is the sustainability of the business. Sustainability affects the earnings generated from the investments done on the business. Operating a business without ethical values will mean no sustainability in the business and investments. A business is also able to compete efficiently in the market through the use of ethical principles in its business operations. This is because the image, popularity and reputation of the business affect its competitive power. These factors are maintained and controlled by the ethical practices of the business.