Another reason why business ethics are important is that it can improve profitability. The winners of this year`s World`s Most Ethical Companies list outperformed the large-cap index by 10.5% in three years. A well-implemented ethics program can also reduce losses. Twenty-two percent of the cases reviewed as part of the 2018 Global Study on Workplace Fraud and Abuse cost the victims` organization $1 million or more. Companies that practice questionable ethics can also experience a drop in share price and the breakdown of business partnerships, which can impact profitability. In addition, business ethics is linked to customer loyalty. More than half of U.S. consumers said they no longer buy from companies they perceive as unethical. On the other hand, three out of 10 consumers will express their support for ethical companies on social media. Business ethics cultivate trust, which strengthens brand image and sales. Before ethical behavior can be rewarded, the Code of Conduct for Employees must be known and available. The first step in building this type of ethical culture is to create an ethics program.
According to the U.S. Department of Commerce, a comprehensive ethics program should affect all business functions. These include operations, human resources, and marketing, to name a few. Global research firm Gartner advises companies to integrate their ethics program into their business operations. Peers are the greatest source of influence on employee ethics. Only 25% of employees trust their peers to model and practice good ethical behavior, according to Gartner. However, some people deny that ethical standards have little or no value. These individuals argue that there is too much emphasis on the ethical codes themselves and that such provisions are not convincing enough to promote moral behaviour in work environments. This brings us to the next topic: commercial law. The roots of ethics as a branch of philosophy go back to Socrates, Plato, Aristotle, and other early Greek philosophers; Many of them have developed the framework of modern ethical thought in relation to the Western world.
The word "ethics" itself comes from the Greek word ethikos, derived from ethos, which means "character or disposition of a community, group, person, etc." Headlines often peddle allegations of unethical behavior in the workplace that can lead to public relations crises, operational distractions, financial responsibilities, and in some cases, the total collapse of organizations. Given the serious financial and reputational consequences of unethical behaviour and the mere allegations of unethical behaviour, it is not surprising that organizational efforts to prevent, detect and respond to it are systematically reviewed by stakeholders. The intensive review makes it important to understand the definition of ethics in the workplace, why ethics in the workplace is important, and the most important thing organizations can do differently to promote ethical behavior in the workplace. Because the message is loud and clear: the world is changing, and with these new expectations, there is no room for excuses for unethical behavior. As a result, corporate social responsibility policies and ESG frameworks have gained traction in the corporate world, with companies committing to sustainable and inclusive growth. Ethics in the workplace protect company assets. A company can prevent theft of property and falsification of documents by implementing ethical standards in the workplace. Work ethic also helps protect an organization from loss of income caused by employees` fake sick leave. According to the 2018 Global Business Ethics Survey, employees are more likely to apply ethical considerations when their organization clearly shows why business ethics is important. Ninety-nine percent of U.S.
employees with a strong ethical culture said they were willing to address ethical issues. Companies that are committed to business ethics motivate their employees to fulfill their roles with integrity. If you are commenting on a particular law or regulation, seek advice from your company`s legal department or consult a reputable business lawyer of your choice. The share price of the 100 most ethical companies outperforms their peers by 300%, according to the Society for Human Resource Management. In addition, you should now have a deeper appreciation and understanding of the special responsibilities that fall on you as a manager of people in the workplace and the significant impact that your legal and ethical responsibilities as a manager have on all stakeholders and society at large. What happens if you suspect that laws and regulations have been violated in your workplace? Well, this doesn`t just mean your company has a rules-based compliance problem, but it also means a deterioration in ethics. If laws have been broken, ethical behavior will inevitably have been violated. Ethical communication in the workplace is another area where employees need to be clearly trained.
An employee who is upset with a client or colleague should not break confidentiality and spread or forward email or gossip. Employees follow the lead of managers when there is no set standard. If the boss comes in and makes fun of a customer or another employee, employees will think it`s okay. Ethical standards must be met to prevent potential bullying and discrimination, resulting in high turnover, high anxiety and low productivity. Why is ethical behaviour important in the workplace? Share on LinkedIn Share on Twitter Share on Facebook Companies depend on employee loyalty, as this is crucial to the company`s success. In the post-war period, there was a concept of "lifetime employment" in which employers ensured stability. Planning ahead helps drive implementation when employees are faced with an ethical dilemma. When management leads an organization ethically, employees follow in these footsteps. Employees make better decisions in less time using business ethics as a guiding principle; This increases productivity and overall employee morale.