There are great advantages of business ethics in personal and professional life. While some people believe that the only thing companies should focus on making money meaningfully, other people believe that companies should also work in this policy.
Business ethics, especially a company’s reputation, can bring significant benefits, but they have some flaws. Here are the advantages and disadvantages of business ethics. We will find out what are the advantages of business ethics in personal and professional life, as well as how to enhance business ethics.
In 2008 and 2009, the events leading up to the Great Economic Slowdown renewed their emphasis on business ethics. Question-based financial reports, leakage compensation, and vain public assertions reduce the confidence of consumers and investors and revisit the debate about whose interests a business should be served.
Although it seems that only good things should be raised from business policies, this profit can be limited to the maximum profitability of a profit.
The debate around business ethics
There are great advantages of business ethics in personal and professional life. Some commentators, such as Milton Friedman, believe that while complying with the law “earning the primary and only accountability of money”, earn money. Supporters of this viewpoint argue that self-interested pursuits of profit-makers benefit the entire society.
Profitable business ventures certainly benefit shareholders, but other scholars such as Edward Freeman argue that businesses may benefit from other stakeholders.
The stakeholders are those individuals and groups with a business relationship. These include shareholders, but extend to include staff, their families, communities in which business manages, customers, and suppliers.
What are the problems of business policy?
Business ethics lower its profit to maximize a company’s independence. For example, a multinational company could move its manufacturing facility to a developing country for cost creation. The acceptable practices in the country such as child labor, poor health and safety, poverty-level wages, and cruel employment will not be tolerated by the moral agency.
Improve the living wage and minimum health and safety standards in the work environment, which reduces the cost-saving level of the company. However, it may be advisable that the ban on the company’s freedom benefits the wider community. There are many ways to increase the advantages of business ethics in personal and professional life.
People, planets, gains
Companies need a commitment to business ethics and only need to measure their success over profits. It has led to the introduction of the triple floor line, also known as “man, planet, profit”. Companies report their financial, social, and environmental performance.
Dow Jones Sustainability Index Benchmark Companies are based on the triple-bottom-line of their karma report. This type of performance reporting acknowledges that companies survival must make a profit, but encourage ethical and durable business behavior.
Advantages of business ethics
Business ethics companies provide a competitive advantage. Customers can learn to trust moral brands and be loyal to them even in difficult times. After Johnson and Johnson were knocked out with exercise bottles in 1982, they spent $ 100 million on Tylenol’s best-selling product. The company follows its creed, a set of moral organizational pricing, and as a result of the fear of pollution, consumers’ confidence is increased. Moral organizations acknowledge their social responsibility because business ethics is facilitating society.
Many people are used to reading or hearing the moral advantages of business ethics attention. However, there are other types of advantages, as well. The following list describes various types of benefits from managing ethics at work.
1. Provide a competitive advantage to customers’ conditions
When an organization behaves morally, they can attract customers to their products and services and lead them to loyalty. It is characterized by an A survey that reveals that one-third of consumers (33 percent) prefer to buy from a brand that creates a positive social or environmental impact.
Such psychology can be a fashion brand whose clothes are sourced, designed, and produced in ways that are kind of environment and workers. Or it may be a printing company whose materials are provided permanently, the workers are provided with appropriate occupation and the printing processes do not harm the environment.
Whatever the industry is, a moral way of business can be the company’s USP (Unique Selling Point). It boosts the company’s reputation, which can turn around, increasing sales. Customers feel better about sharing their money if they know that products will be produced morally and responsibly.
2. Improving employee happiness
Employees will do more comfortable work for a business that is not meant for one who behaves morally. After all, they do not want to be partially responsible for any immoral results, such as contributing to any area or poverty distribution due to partial labor.
This will increase the productivity indicated by the survey of more than 2,000 Bright 2012, which saw 36 percent of people working hard if they knew that their organization helped the community.
Business ethics just does not want to stay for current employees. It can also provide a competitive edge to businesses in the employment of young people, especially in the young generation. The same survey found that 62 percent of the people born between 1981 and 1996 (million years) want to work for a company that has a positive effect.
3. Attract more investors
If investors know that the company works primarily with higher ethics and works ethically, then they will be safe in case they can use their money in a responsible way. Plus, this means they can be comfortable that they are not indirectly contributing to immoral practices.
This is an advantage because the investors will be more likely to continue company financing.
Strong business ethics is also an attractive quality, which means that other investors are more likely to be interested in investing in their companies, which means that the share price is high and it is protected from the takeover.
4. Good for society
Business policies are beneficial for the company by attracting customers, investors, and employees). But this is not the end here. When a company is aware of its behavior, impact, and environmental footprint, it is better for society as a whole.
For example, a printing company can take care of their materials permanently and make their products environmentally friendly. This approach helps society in various ways by means of both ways:
The workers who sow, maintain, cut, and produce seeds provide better living conditions and ensure that their business does not suffer locally.
printed products are being created, it will be environmentally friendly – such as using durable inks or energy-saving printers.
Print company stock (such as paper, card, etc.) will be provided in such a way that will not affect the environment. The trees that are used for the construction of the stock can be planted in other places.
Being compassionate to the environment eventually benefits society, because it means that customers can live in a world that is better than their bad or sorrow. This means that customers can begin to become more aware of business ethics and choose institutions that support strong morals to continue moral practices. Which facilitates further enhancements.
5. Strengthens teamwork and productivity cultivation.
Ethics programs align employee behavior with moral values in top priority who are preferred by agency leaders. Generally, an organization finds surprising disparities between the quality of its choice and the quality reflected in the actual workplace behavior. The ongoing attention and dialogue about standards in the workplace, openness, honesty, and community – create critical elements of strong teams at work. Employees feel strong feelings within their standards and organization. They react with strong motivation and performance.
6. The focus of business ethics has significantly improved society.
A few decades ago, our country worked for 16 hours in our country. The body of the workers has been broken and the poor workers of poverty and hunger have often been condemned. Trust has fixed the price that some price has been fixed and small business closed out. Fixing the price of the ordinary market forces imperfect.
The employee is rejected based on personality. The effect is applied through fear and harassment. Then the society responded that businesses have a high value on fairness and equal rights. The Anti Trust Act was introduced. Government agencies are established. The union is organized. Laws and regulations were established.
7. Help maintain a moral course in annoying times.
It is important to keep an eye on business ethics during the fundamental change – now both nonprofit or profit are faced with business. There is often no clear moral compass to guide leaders through complex contradictions in the time of change, correct or wrong. Continuous attention to ethics in the workplace, how they want to work, sensitizes leaders and workers – consistently.
Ethics program helps manage value associated with standard management, strategic planning and diversity management – this facility requires a lot more attention.
Identify the desired standards of the ethics program and ensure organizational behavior is integrated with those values. This effort includes recording values, improving policies and procedures for sorting behaviors with preferred values, and then training all staff about policies and procedures. This overall effort is very useful for various other programs at work, for which it needs to be treated together with values including value management, strategic planning, and diversity management.
Management of total quality includes high priority over certain operating standards, e.g., performance, performance, reliability, measurement, and response among stakeholders. Using ethics tools in their quality programs to ensure the honesty of their relationship with Eastman and Polaroid stakeholders.
Ethical management strategies are very useful for managing strategic standards, eg, increasing market share, reducing costs, etc. McDonnell Douglas integrates their strategic plans into their strategic planning process.
Useful for the diversity management of the ethics management program. Diversity is much more than the color of human skin – it recognizes different values and perspectives. The diversity program requires the identification and application of various standards and perspectives – these activities are based on a sound ethics management program.
8. Helps to ensure that the policy is legal.
There is a growing number of lawsuits in the case of employees and stakeholders on the impact of services or products of an organization. As mentioned earlier in this document, moral principles are often the latest legal issues. These policies are often applied to current, major moral issues to become law. The attention of morality ensures very moral principles and procedures at work. It is better to bear the cost of procedures to ensure ethical practice than to spend the case now.
One of the main objectives of well-planned employees is to ensure the ethical treatment of employees, for example, in the field of recruitment, assessment, discipline, arising, etc., Drake and Drake (California Management Review, V. 16, pp. 107-123) Note that “any employer obeys any commitment Failure to continue may be appropriate for contravention of the contract, so it has been called corporate The gap between culture and actual practice has significant legal and ethical effects as well. “
9. Supports employee growth and finance.
Institutions and among themselves – Opportunities of ethics in the workplace help employees to face the realities of both good and bad. Employees can accept their confidence and can feel full confidence in whatever their way can deal with. Bennett explains his article “Immoral behavior, links to the presence of stress” (Wall Street Journal, April 11, 1991, p. B1), a consulting company executing and executing a range of managers. Their most striking findings: More emotionally healthy executors measured as test batteries, perhaps they were high score in ethics test.
10. Ethics programs can “avoid” criminal acts to avoid and reduce penalties.
Ethics programs are primarily identified in moral issues and violations so that they can be reported or addressed. In several cases, since an organization is aware of any potential as well as a realistic violation and does not report it to the appropriate authorities, it may be considered a criminal act, for example in the case of business transactions with certain government agencies like the Defense Department. Recent federal sensing guidelines specify major penalties for violating various types of major ethics. However, when an organization strives to clearly run ethically, guidelines reduce potential penalties.
11. Promotes a strong public image
The principles of ethics are strong public relations – aptly, the management of ethics should not be primarily due to public relations. But, truthfully, an organization regularly focusing on its morality can play a strong positive role for the people. People consider those institutions more valuable than profits, as they try to work with honesty and respect.
Value-added behavior is critical with effective marketing and public relations programs. In contrast to how Jackson and Johnson conducted the expansion of oil in Exline Alaska, the Tylenol crisis was handled. Bob Doe, president, and chief executive officer of San Francisco’s social responsibility business, puts it best: “Moral values are consistently applied, the basis for building commercially successful and socially responsible businesses.”
Business Ethics Difficulty
Maximum limited power to gain
The main loss of business ethics is that they can reduce the power of a company to maximize profits.
For example, in developing countries, factories can reduce costs. That is why companies can practice in such a situation as child laborers and low wages, which can help maximize profits. Although these practices are legal in that country, they will never be tolerated by an organization that follows incredibly immoral and even ethical practices.
Improvements in the workplace, such as providing labor wages with living wages and proper health and safety standards, are moral, but it increases the amount of money they spend on running these factories. As a result, the profit is reduced which can not be a problem for big companies who can allocate expenditure. But it can be a problem for small businesses, especially if they develop.
Cut out during the implementation of the practice
Developing and implementing business ethics can be time-consuming, especially if a company is already pursuing immoral practices and becoming more moral. Moral practices need to be regularly updated according to changes in laws and regulations, especially in an organization.
The company can streamline the process by applying a policy officer, but it adds the necessary funding for business ethics.
But despite the flaws, it is important to consider the positives!
Business Ethics Education
In the country’s leading business schools, ethics courses have seen an explosion of interest because students are running more businesses than just making money. What is important to these next-generation leaders, how you do business, how you earn money, and influence business is in society. Here are some examples:
About 200% of Harvard MBA classes have signed the MBA Oath which says that instead of trying for their personal ambition only, they will work responsibly, morally, and for the greater good of society.
At Columbia Business School, all the students pledge to respect a code that says they will not lie, cheat, or steal or anyone will not tolerate it.
It is not only responsible but it is not important that businesses research and consider their impact on workers, communities, and society. Once armed with that information, they can choose the right thing even if they spend more. It is the definition of business principles and what I believe and will positively change our community, our environment, our country, and our world.
Still do not sell the importance of business ethics management at work? Check out this list of benefits and benefits that might surprise you.
A focus on business policies has substantially improved society and work conditions
If this moral standard is not set, children will still work in factories; 16 hours a day will be ideal; And the practice of discrimination, abuse, and labor will still be part of doing business. It’s important to know what is changing and new values are being set up now. This is good for all of us.
Ethics provides a Moral Compass during a difficult time having a code
Keeping a code of ethics provides you with a tool to make consistent decisions about right and wrong. It is especially helpful when making a decision during a conflict.
Increasing workforce support workers increase the ethics and pay what they do
By running a moral operation, employees think they are contributing to society in a positive way. What are the meaning and responsibilities of liability on the daily basis of these ideas?
Ethics programs can enhance coordination and performance with personal standards
If clear policies are communicated with your organization in a consistent way and discussions about how individual standards are arranged, it can develop your organization’s motivation and cooperation. That employees feel a strong combination with their personal values and ethics of an organization, with strong commitment and performance.
Clear Business Ethics can promote a strong public image and greetings
Aligning behaviors with your business in developing a positive image is important. Today’s intelligent consumers are doing more research and how businesses manage and closely manage “conversations.” Applying Moral Values to Daily Business Decisions The basis of a truly successful and socially responsible business is to develop
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We have discussed the advantages of business ethics in personal and professional life. When we can extract advantages of business ethics, life and work will be meaningful. Although the profit of an organization can have the greatest freedom to reduce, it benefits greatly from the responsible community. Ethical behavior also boosts a company’s reputation significantly, which attracts customers, attracts, attracts investors and employees, and has a knock-on effect on maintaining.
So, when you accept this account, these losses may not be particularly negative. Let’s find out your particular advantages of business ethics. Learn more about SMART goals for professional development.