THE IMPORTANCE OF BUSINESS ETHICS TO CONSUMERS, EMPLOYEES, INVESTORS AND MANAGERS
It is a hardcore fact that no company can be a successful organization without the presence of ethics in its composition. However, it is important to note that “business ethics” if properly interpreted means the standards of conduct of individual business people, not necessarily the standards of business as a whole.
Business leaders are expected to run their business as profitably as they can. A successful and profitable business in itself can be a tremendous contributor toward the common good of society. But if business leaders or department managers spend their time worrying about “doing good” for society, they will divert attention from their real objective which is profitability and running an efficient and effective organization.
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity. For examples, employees who are treated ethically will more likely behave ethically themselves in dealing with customers and business associates. A supplier who refuses to exploit its advantage during a seller’s market retains the loyalty and continued business of its customers when conditions change to those of a buyer’s market. A company that refuses to discriminate against older or handicapped employees often discovers that they are fiercely loyal, hard working and productive.
In my opinion, a good individual who steadfastly tries to be ethical (i.e. to do the ‘right thing’, or to make appropriate ethical decisions, etc.), somehow, always overtakes his immoral counterpart in the long run. A plausible explanation of this view on ethical behavior is that when individuals operate with a sense of...