While the decisions in business are made by individuals or groups of people, they have been shown to be greatly influenced by the culture in the company.
Benefits of business ethics
It’s important for any business to have ethics. The benefits include:
Attract customers: When customers know that your business is reputable, they buy more products and services from you. This will see you have an increase in sales and consequently profits.
Employee retention: We can all agree that employees fuel business. If your company is known for its excellent reputation, the employees will want to stay in the firm. This not only increases the labor turnover, but it also increases the productivity of the company.
Employee attraction: No one wants to be associated with a bad company. When you have an excellent reputation, you attract high-quality employees in your business. In most cases, you receive applications even when there are no open slots. The good reputation not only helps you to acquire talented and determined employees, but you also have reduced recruitment costs.
Attract investors: You not only attract customers and employees when you run your business ethically, but you also attract investors. This sees your business having enough money, and the share price remains high.
Must have business ethics
For your business to be termed as ethical, your employees and business ethics need to have a set of ethics. They include:
Honesty: All of your staff need to be honest and truthful in all their dealings. They shouldn’t deliberately mislead or deceive customers by selective omissions, overstatements, partial truths, or any other means.
Trustworthiness: The clients and investors should trust your business. If the customers order a product, they should get it at the agreed time. In the event of a problem, you should give back their money or replace the product without complications. When it comes to contracts, the business shouldn’t interpret them in an unreasonably technical or legalistic manner.
Integrity: This is integral as it determines the reputation of the company. In the business world, integrity only means doing what is right even when there is an opportunity to do otherwise. The business leaders should be upright, honorable, and principled. They shouldn’t be hypocritical or unscrupulous.
Concern for others: Your business should be made up of caring, kind, compassionate, and benevolent employees. It’s common for customers and investors to make complaints. The employees should show concern and attend to their needs in the shortest time possible.
Law abiding: Laws are meant to provide order both in business and personal lives. Some rules govern any business, and it’s up to you to ensure that you follow them. Follow them even if they are as minor as how to dispose of the trash. If you are in the health and safety business, there are plenty of laws that you need to observe. Follow them diligently.
This is what you need to know about ethics in business. As a business owner, it’s your duty to instill the values in your employees. The best way of doing it is by training them.