Benefits of Ethics
Ethics is a branch of philosophy which addresses questions about morality like differentiation between good and bad, right and wrong, noble and ignoble, virtue and justice. Ethics can be studied under five major branches of meta-ethics, normative ethics, applied ethics, moral psychology and descriptive ethics.
Quality business ethics practiced can contribute a lot to a success of any company. Business ethics mainly focuses on examining conduct and policies at both individual and organizational levels. Business ethics relates to the application of principles and theories of ethics to achieve both individual and organizational goals. There is a great change in the field of business ethics as more and more firms are identifying the benefits of business ethics.
Many firms have today realized that there is a direct link that exists between business ethics and financial performance of the organization or firm. Building ethical reputation for a company among its employees, customers and also the public is very important to achieve organizational goals. There are many practical benefits of being ethical.
Being ethical and socially responsible in business can practically have many benefits like
Â’· Increase in efficiency of daily operations,
Â’· increase in commitment among the employees,
Â’· increasing investors willingness to invest more in the business,
Â’· increased financial performance and
Â’· improving trust of customers in company’s products and services.
Contribution of ethics towards Employee commitment
The commitment of employees increases when they realize that their future is tied with the growth of the organization. Their willingness to give personal sacrifices can help the organization grow which in turn can result in their own growth. An organization should always be dedicated towards the employees and should look after their welfare. This results in the employees taking care of the organization.
Contribution of ethics to make profits
Ethical culture can be developed by any organization when it has attained adequate financial performance and has made enough profits. Businesses with good financial resources can be socially responsible while serving their customers and can take proper care of their employees which also builds public trust. According to studies, there exists a very positive relation between corporate social responsibility and business performance.
So, it is quite evident from many organizations that being ethical pays off well and can lead to improved financial performance. Today, many corporations are showing great concern for ethical conduct in business and are including the same in their strategic planning to increase their profits.
