First of all, don`t hide from the fact that an ethical business will reduce your profitability, at least initially. This is because ethical action has a price. However, in the long run, you may be able to get higher prices for your products or services while enjoying increased customer loyalty, which could negate the cost of an ethical business. Starbucks is a great example of a company committed to ethical and sustainable practices while remaining a profitable company. In this article, we look at the relationship between business and ethics and answer the question of whether a company can ever be truly ethical. We will also look at some examples of companies known for their ethical activities. While immediate profits show a healthy profit from immoral actions, the reputation of these companies ultimately suffers. Over time, this can really hurt a business and its profits. Too often, we hear about CEOs who have stolen funds or ruined a company`s reputation due to corrupt practices. The answer lies in leadership. Companies cannot operate effectively in the long term if they are not led by an ethical leader.
Being ethical is not a choice in business, that is, you cannot choose when you want to be ethical. Your day-to-day business decisions should be ethical. We cannot simply wait for press articles about corruption, greed, misuse of public funds or fraud to be published before we start acting ethically. With increasing media exposure, companies have no choice but to ensure that every person who works in the company has ethical standards. Many people see the fashion industry as one of the biggest sustainability challenges in the modern world. So-called “fast fashion” is particularly problematic in terms of ethical sourcing, as many shoppers are now trying to recycle clothes and turn to second-hand stores instead of buying new every time. Companies that have and promote strong corporate initiatives are more successful in the long run because they are committed to expecting healthy moral behavior. This shows a commitment to the company, customers, employees and the company itself.
It also improves a company`s reputation when it becomes commonly known as an ethical company, which brings more value to the organization. Ethical companies benefit from increased customer loyalty and can earn a higher premium for their products and services. Companies like Starbucks, H&M and TOMS are a testament to the high level of success that ethical companies can attract. Ethical behavior has several components for a company: governance, CSR and sustainability, among others. What strikes me personally is diversity in general and gender equality in particular. A diverse workforce is more innovative, creative and efficient. Diversity is therefore not only ethically correct, it also makes a positive contribution to the company`s result. Good business practices start with management setting standards for what is expected, and they should lead by example. Establishing higher ethical behavior within a company benefits the company in several ways. It demonstrates strong values established for a commitment to the company`s philosophy and mission. First, different people understand ethics in different ways. What is ethical for one person can be unethical for another person, making it difficult to set the rules when it comes to running an ethical business.
Thank you Ethics in business I agree, is a key to longevity in the bush. We also strive to help people understand that ethics is essential to how we treat our businesses and employees. Thank you again for supporting these principles. I think what`s absolutely true is that while you can be an ethical businessman, it`s impossible to run a completely ethical business – just because money moves the world. In this factory scenario, I would have done the shady trick, not without much thought, but in the end, it comes to a point where the boundaries between “ethical” and narcissistic can blur. Maybe that`s the kind of person I am, but for me it was a no-brainer – am I wrong/weird/a bad person?! Ethisphere`s program explores more than just a company`s moral behavior. It combines this attitude with the company`s performance in the market. The economic component is not forgotten! And that`s what Dell stands for. Doing business in an ethically correct manner.