Business ethics promote ethical behavior to protect business from abuse by unethical competitors. Business ethics also conduct customers to be shown the positively performance of the company, attract customers to the company’s products, which have advantages for sales and profits. Business ethics contribute to the company safety from legal perspectives. It is act as an insurance policy, the high ethical performance also protect the individuals who work in the business, make employees want to work in the business, increase productivity and reduce labor
(Daft, 157). One interesting study reveals that companies that have more CSR commitments score higher in the stock market than those with little to none CSR projects (157). Also, research shows that customers and employees care about ethics (Velasquez, 4).” Velasquez believes that “ethical behavior is the best long-term business strategy for a company” (Ethics, 4) mainly because “it creates the kind of goodwill and reputation that expand a company’s opportunities for profit (6).” Higher ethical commitments from businesses will likely lead to enhance image and reputation, which can lead to greater satisfaction from stakeholders, and eventually will translate to financial benefits. In the long run, commitment to ethical management will pay off the costs of not having to resort to unethical practices, which are traditionally used by managers to increase company
Marketing ethics may also refer to the manner in which a business presents its products to consumers generate more sales and make more profit. Such a practice must include a conscious attempt by the companies in question to apply moral principles when they are dealing with clients or other customers, especially when it comes to the production, pricing, and promotion of their goods or services. Some ethical issues are universal, while some are derived from the culture and beliefs of various people. Since marketing is oftentimes the first line of information a person receives about a certain product or company, it is extremely pertinent for the extended life of the company who is making or producing that certain product or is representative of that company, to be honest in their approach to the public. If they are unethical if they prey on weakly minded customers and other related parties then the company would surely suffer.
However, strong culture will adopt code of ethics which asks employees to participate in its creations. For a healthy and firm corporation culture raise the morals among colleagues in an organization which may increase capacity and employees possession, which becomes a turning point benefiting the organization increasing their productivity and giving financial benefits. Higher level of productivity improves the capability in a company and reducing the cost of recruiting new employees. Some of the ethical principle for business executives are Honesty, loyalty, fairness and concern for
Building relationships matters in business because when consumer is making the decision of dealing business with they are likely to be more comfortable with the one having a relations because they can trust someone who they know well. 2. Creating new avenues for your business: Business models can expire and altered in ever changing economy and technology but with networking business can create a new avenue for the organization to do business. 3. Stand out: Networking allows the business to stand out from competitors because customers trust them because of the impact networking provides.
Additionally, the study argues that regulations alone cannot effectively promote ethical business practices. Ethics in business is important due to a variety of reasons. Firstly, ethical principles correspond to the primary human needs. As such, ethics represents a human characteristic that requires individuals to engage in ethical practices in their private lives and business affairs. People are also attracted to organizations that promote moral values and possess a reputation for honest activities that benefit the society (Kumar et al., 2014).
Business ethics are the moral principles that govern the way the business act. Acting ethically in a business means the distinguishing between “right” and “wrong” and choosing the right thing. Having good ethics is not the only important thing in a business, applying them is more important as it guides the business to success, but if they are not applied the business will fail for sure. Governments impose some laws and regulations in a way which directs the business to the way that it could be beneficial to the country and the society. Business ethics in any business organization is important as it needs to confirm the expectations of the stakeholders and the society.
This can be explained by if a company has carried out social responsibility programs it helps the company to build up its image, reputation and even can increase its competitiveness. By implement social responsibility programs, a company can win employees, customers and society’s trust and respect. According to “Carroll’s CSR Pyramid”, the first level is economic responsibilities, the second level is legal responsibilities, the third level ethical responsibilities and the top level is philanthropic responsibilities. It means that the main goal of the company is earning profits, the second level is obeying the law, the third level is being ethical and the top level is being a good corporate citizen (Dudovskiy, 2012). One of the ways to show social responsibility of a company is through philanthropy.
This would help the company obtain and keep a competitive advantage. The final advantage is the control of what people think about the organization. Big data analysis gives the company both the positive and negative responses from the public. This gives the company a chance to improve on their errors and increase customer satisfaction. It monitors the organization's general customer feedback.
Competition and rivalry, which are the hallmark of today’s business environment has led to businesses to focus on building strong relationship with its customers. Stated that businesses are increasingly relying on establishing strong relations with its customers not only in terms of better serving and catering them but also in terms of promoting goodwill. Businesses also view this customer relationship with as a means of keeping their customers with us and away from their competitors. Effective customer relationship results in mutual benefits & rewards. This not only proves to be fruitful for the business but also for the customers also.