Abstract
In the technology era, communication plays a constant role. It is understood by practical business people that effective, timely, efficient, and ethical communication holds great significance. The definition of ethical communication may vary depending on the present circumstances.
The subject of business ethics can vary greatly across different companies and how they interpret and implement ethical practices, especially in sm
...all businesses. What may be considered ethical in one organization may not be applicable in another, which also applies to the employees. It is therefore important to clearly communicate the company's ethical stance to all workers. Employees should behave ethically and have a comprehensive understanding of the ethical standards adopted by small organizations. Companies that aim to be socially and ethically responsible must prioritize ethical communication within the company and in their interactions with the public (Paul, 2004). Businesses should practice ethical communication within the organization to cultivate and maintain a positive image.
The public's perception of a company can impact how customers view its products or services, which in turn affects the overall image and profitability of the company (Haggerty, 2011). To shape and protect their image, organizations must carefully design communication strategies. A crucial aspect of effective communication strategy is ethical
communication.
The Influence of Ethics on Communication
Business ethics refers to a company's adoption of ethical behavior. A morally upright business prioritizes the best interests of its partners in all decision-making processes. It is important to recognize the significant impact that ethically sound behaviors by corporations can have.
Organizations that demonstrate ethical conduct and social responsibility achieve superior results. Ethics is ingrained within successful businesses, outlining the expected behavior of employees. An example of such a company is Target, which embraced the concept of triple bottom line well before it became popular. Target's founder, George Draper Dayton, laid the groundwork for philanthropy and societal contribution. The triple bottom line approach evaluates the economic, social, and environmental impact of a firm's activities.
The company has been steadily increasing its commitment by donating 5% of its revenue annually since 1946. The dedication to ethical practices and social responsibility can be advantageous, even during economic crises. While many businesses succumb to pressure for short-term results by setting unrealistic goals, which in turn puts employees under immense pressure, businesses that prioritize ethical behavior strive to do what is right, even in difficult or unfavorable situations (Paul, 2004). Unfortunately, some businesses and individuals in the business world operate unethically. Examples include Enron, Tyco, WorldCom, and HealthSouth. These companies were highlighted in news reports for their unethical behaviors resulting in corporate scandals and prosecution of senior managers in some cases along with the downfall of certain companies.
Enron, established in 1985 as an energy company, experienced rapid expansion in the late 1990s as a result of energy market deregulation. Nevertheless, the company's unethical conduct became public when it went bankrupt in 2001. Enron not only ventured
into internet services but also provided loans to support its new endeavors.
The firm seemed less profitable due to debts, prompting senior managers to establish collaborations to hide the debts. They created fake companies to handle the debt and presented different financial statements to shareholders and the government. These manipulated accounts made the company appear profitable, resulting in many people buying shares. Questions began to arise about the accuracy of Enron's accounting, and in October 2001, the company announced losses of $638 million, which triggered an investigation. The declining stock price and inability to repay commitments led Enron to file for bankruptcy protection under chapter 11.
The downfall of the organization was caused by the unethical and illegal actions of its top managers.
The Significance of Ethics in Business
Whether made by individuals or groups, decisions within organizations are frequently influenced by the company's culture. It is crucial for employees to make ethical choices and select the correct course of action, even if it entails rejecting a path that would yield immediate high profits (Winn, 2002). Embracing ethical behavior and corporate social responsibility also offer substantial benefits (Haggerty, 2011).
Having good business ethics can attract consumers and lead to increased sales and profits for a company. It also helps with employee retention, as a adopted code of conduct makes them feel comfortable and reduces turnover, ultimately increasing productivity. Furthermore, companies with strong business ethics tend to attract more employees who are eager to offer their services. This eliminates the need for costly recruitment exercises and allows the organization to secure highly talented personnel.
Businesses that exhibit good ethical practices and corporate social responsibility are attractive to investors, helping
to maintain high share prices and protect against takeover attempts. However, engaging in unethical behavior or neglecting corporate social responsibility can harm a company's reputation and deter stakeholders, leading to decreased profits. Cadbury Schweppes serves as an example of a company that has successfully incorporated ethical practices and corporate governance into its operations. The company treats its stakeholders fairly, which significantly contributes to its success. In their manifesto, Cadbury Schweppes emphasizes the importance of a well-managed corporate and social responsibility program for all stakeholders involved: customers, shareholders, employees, suppliers, and business partners (Richmond, 2010). Furthermore, the company's "business principle" ensures that employees understand the organization's corporate values and the expected behavior for each individual employee.
The company's good practice was recognized in 2003 when it received an award from Management Today magazine for being the most admired company in terms of community and environmental responsibility.
Conclusion
In order to maintain a positive image and successful relationships with stakeholders, companies must adopt ethical practices and demonstrate corporate social responsibility. Transparency and trust will be gained by engaging with all parties involved.
References
- Haggerty, M. (2011). Business Ethics: OUTLOOK. CQ Researcher, 21(18), 427-429.
- Paul, K. (2004). Business and Society and Business Ethics Journals: A Citation and Impact Analysis. Journal Of Scholarly Publishing, 35(2), 103-117.
- Richmond, K. K. (2010).
The text includes the following references: "The power of selling" written by the author from Nyack, NY, and "Blowing the whistle: Business ethics and accountability" written by G. Borrie in 1996.
Political Quarterly, 67(2), 141.
Winn, B. K. (2002). Communication 2000, 2e: Communication and ethics. Place of publication not identified: South-Western.
