Every company should have their own moral principles and guidelines. Following business ethics has more benefits than you think. It will help you to keep and attract employees, customers, and investors.
For example, consider that you are an “energy drink” manufacturing company and you’ve proclaimed on the labels and advertisements that you don’t add any preservatives to the drink, then You should adhere to the claims you’ve made. If you disobey your claims and sell the product by adding preservatives, then it is considered as unethical business practice. It will deteriorate your brand and eventually, you will lose trust from the customers. It also damages the reputation and keep away the stakeholders. Therefore, following business ethics is very important.
Reputation is one of the most important assets of a company and it is also one of the most difficult tasks to rebuild once it is lost. You will start building a good reputation with consistent ethical behavior. Potential Investors and shareholders are likely to get attracted to the companies which adhere to their moral guidelines and promises they’ve made; this keeps the company’s share price high.
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To retain a positive reputation and image, businesses must be committed to operating on an ethical foundation as it relates to respecting the surrounding environment, treatment of employees, and good market practices in terms of customer treatment and price.
Employees also feel comfortable and wants to stay in the business for the long term when working with a company which has strong business ethics. This increases the productivity and reduces the labor turnover. They are also bound to follow the footsteps of the organization. When an employee does his work with integrity and honesty, and by following the guidelines, it will eventually benefit the company.
Every company has spoken and unspoken rules about how to act within a company environment. Give lucid explanations about what is okay and what is not okay. This includes behavior towards other employees, customers, and the public. Sometimes these guidelines are different for different companies.