The Role of Business Ethics Essay Example

good employees. Workers tend to become disenchanted with employers who foster a hostile and contentious work environment, prompting them to seek alternative employment in organizations that prioritize ethical practices.

A positive relationship between workers and management is essential for job satisfaction and improved work performance. Ferrell & Fraedrich (2015) state that ethics play a crucial role in enhancing a company's reputation. They also mention that honesty and trustworthiness within an organization promote unity and job satisfaction. Based on my research, ethics contribute to a company's long-term success by fostering quality and superior performance. Business ethics experts agree that companies practicing key societal values like integrity and fairness are more successful in attracting and retaining top employees.

Building a company that is trusted by its customers takes time. However, companies that lack ethics may generate profit in the short term but cannot sustain it. Adhering to ethical practices makes an organization competitive. It attracts top investors who are willing to provide maximum funds because the company has proven to be trustworthy (Buchholtz & Carroll, 2012). Few investors would take a risk by investing in organizations that lack credibility and fail to demonstrate accountability in handling funds and profits. Additionally, ethical organizations become a magnet for high-quality managers as their employees require minimal supervision.

Employees of a company that follows ethical practices abstain from engaging in unethical behaviors, such as accepting bribes or being unreasonably tardy. As a result, the ratio of supervisors to subordinates will rise, as the employees need less supervision. Consequently, the organization's wage expenses will be reduced in the long term. Moreover, this fosters an increase in the number of devoted employees, as trust is built

between the employees and the organization, making it their preferred destination.

By practicing ethics within the company, the productivity of subordinate staff is heightened as they genuinely enjoy their work environment. The work place promotes integrity, consideration, and social responsibility, resulting in minimal stress and dissatisfaction, ultimately reducing attrition rates.

Having a less stressed staff results in increased productivity because employees will be more focused and committed to achieving the company's goals rather than their own personal ambitions. It also helps reduce internal conflicts and increases employee satisfaction with their work. Furthermore, organizations that uphold cultural ethics are more likely to attract customer preference and support.

Choosing a supplier with high integrity is preferred over a supplier with integrity issues. Consequently, the absence of ethical practices in businesses leads to a decline in market share and reduced revenues, as well as a decrease in the popularity and profits of the organization. Conversely, implementing business ethics enhances customer loyalty, improves the company's image, and encourages customers to choose your store or organization for their purchasing decisions (Ferrell ; Fraedrich, 2015). It takes years for companies to establish their reputation but a single ethics breach can tarnish it in a day. However, if the company handles the crisis promptly and honestly, they can recover swiftly.

The company's failure to address dissatisfaction and ongoing scandals may lead to a loss of reputation and customers (Ferrell & Fraedrich, 2015). Implementing good business ethics can minimize scandals and enhance the company's reputation. Good business ethics also result in positive legacies for staff and managers, including integrity. Corporate leaders strive to leave a lasting legacy of profitability, growth, and exemplary leadership traits.

This will change the

deep desires of current leaders in many corporate companies. One can create a large empire, but without practicing business ethics, they may face stigma. The benefits of business ethics are as follows:

1. Ethics can serve as an insurance policy. Companies and individuals accused of scandals may prove their innocence if their ethical record is clean. This argument is frequently used in legislative matters. When guilty, they can receive reduced sentences based on their history of ethical behavior (Weiss, 2014).
2. Practicing ethics can improve your chances of promotion in the workplace. Employers often prioritize ethics when hiring new staff or promoting current employees.
3. Practicing business ethics decreases the likelihood of being fired for serious violations of office conduct. Your previous reputation will mitigate the severity of the punishment.

Case Study

To understand the value of practicing business ethics, let's examine the examples of Lehman Brothers and Satyam. These two organizations suffered significant failures due to their failure to adhere to ethical standards (Weiss, 2014).

Despite their significant market entry, both businesses experienced failure due to engaging in unethical practices. Lehman failed to secure a loan from the Federal Reserve because of instances of fund misappropriations. In contrast, Google has become a successful company by strictly adhering to business ethics. The company's success is based on its commitment to respecting employees and maintaining positive relationships with management. Furthermore, Google has the ability to attract highly talented individuals to join its workforce. This example highlights the crucial significance of ethical adherence for all business entities.

References

Nelson Education.