Tap to Read ➤

Importance of Ethics in Business

Manali Oak Feb 14, 2020
Ethics in business are about distinguishing between the right and wrong business practices and adhering to ethical principles when involved in them. Why are ethics important in business? This story gives you the answer.
We see successful businesses fail and profitably running organizations suffer a downfall. We see famous names in the corporate world lose their reputation. One of the main reasons behind these surprising failures is the lack of business ethics.
A true understanding of right and wrong, and the ability to distinguish between what's morally right and what's not, is ethics. It is an important part of life and running a business is no exception to it. To become successful, a business needs to be driven by strong ethical values. The mindset of a businessman creates the mindset for his organization.
It is his ideologies and philosophies that influence the work culture there. For a business to prosper and maintain its wealth, it ought to be founded on ethical principles and strong moral grounds.
A business that is based on ethics, which is to say, where strategies and decisions are based on the sense of right and wrong, can run successfully for long. Moneymakers who do not heed to ethical values may earn success but it is only short-lived. To stand strong and last long in the market, ethics are essential.
For a business to achieve long-term profits, customer relationship is of utmost importance. To establish a long-term relationship with the customers and to achieve customer return, a business needs to be based on ethics. The trustworthiness of a business, its customer service, customer care, its way of dealing with them, and its urge to retain old customers, is a part of ethics in business. Business ethics leave a long-lasting and positive impression on the customers' minds. This leads to trust-building, which helps a business retain old customers and fetch new ones.
Most of us are concerned with making money for our business and we cater to only the legalities. How much importance do we give to morality? Not everyone takes that extra effort to base their business on ethical principles. At times, ethical duties of businessmen and project managers could be more abiding than even the business laws. Ethics is a far-reaching concept and it goes beyond the idea of abiding by the law while earning money. Ethical values are way ahead of this. They go on to earn long-lasting relationships for the business.

Stand Strong against Unethical Practices

Being ethical while running a business gives you immense satisfaction.
There is great strength that can be derived from knowing that what you are doing is right and that you are being fair to everyone associated with your business (from your employees to your clients). Strong ethics can thus serve as your biggest motivator. Ethics are an integral part of running a business the right way.
Hence, behind any successful business, is a combination of acumen and strong ethics. Success that is attained without the foundation of strong ethics is sure to be short-lived. It can be a fluke sometimes, but to be successful consistently, a strong foundation of ethics is essential.

Make a Fair Use of Business Resources

Ethics in business are not limited to the individuals running it. The concept applies to anyone who is a part of a business organization.
For example, when a company gives it employees certain benefits, it is the employees' duty to not take undue advantage of these. Similarly, one's rights or powers should not be used in an unfair manner. The use of company resources for personal benefits is definitely unethical.
Using the wealth of the business for personal reasons is not right. Using company funds for personal reasons is morally wrong. A thoughtful and careful utilization of company resources is an essential component of ethics in business.

Do Not Accept Bribes

Accepting bribes, pleasing the so-called 'important' clients, favoring some customers while being unfair towards the others, is against ethics. The aim of a business is not just to maximize profits. It is rather to cater to the needs of society and work towards benefiting the masses.
Experts in business management have endorsed the need for businessmen and company professionals to study ethics. They have asserted the importance of founding businesses on ethical values and following them sincerely. They have urged management professionals to adhere to moral principles. The truth is that strong ethical values are crucial to the success of a business.