Business ethics is more than just a concept used to enhance the image of a corporation; ethics are the very foundation of success. Business ethics should be applied from the very moment a firm opens its doors.
Values and ethical boundaries define one’s upbringing! Ethics play a major role in the society and are crucial in determining the long-term success of a person or business. The company’s leaders should think long-term and avoid taking easy ways with regards to ethical compliance. Building trust among clients, partners, employees and the public can ultimately be the most valuable asset for any company. Business ethics actually consists of the actions of individuals working within businesses.
Most entrepreneurs face ethical and moral dilemmas on a daily basis when running their organisation. Whether you need to get government clearance to get your business going or try bagging that deal worth crores with a potential client, it’s easy to succumb to the temptation of finding a shortcut to reap gains for your business. The temptation to compromise on ethics to grow the business can be far higher as a startup since you are just at the starting leg of your journey and there is a lot to accomplish to get anywhere close to your vision.
Kanthi Dutt, has built a business empire on his own since the age of 12 has gained immense credibility and reliance over the years as a result of his sound ethical entrepreneurial practices. Leaders set the tone for ethics in their organizations. It is unfortunate that some employees in the upper echelons of the corporate ladder decide to act unethically, but it is a fact of business and of life. For this reason, it is important for a business to be careful of who they promote within their company.
Kanthi says, “Don’t chase success at the cost of personal ethics. In order to succeed, you must gain respect both as an individual as well as a business. Nothing can ruin your influence and respect faster than lack of integrity. A company with strong business ethics will earn the respect of the shareholders, as they know that their money is being used in a moral way.”
“Success without integrity is a failure. If the company’s moral code is dubious, it will lose any respect in the long run. Businesses should consciously mould a culture of values and service in the fabric of their companies. Leaders who demonstrate these qualities are more likely to earn the respect of people.”
A successful company is not just about impressive financial statements; success also has a lot to do with ethics based on management philosophy, organisation culture and business practices. This intangible aspect eventually becomes a part of your brand and has a direct impact on how you are perceived in the market.
Ethics means principle. Ethics is very important in life and also in business. It makes the value of a person in themselves and in front of others also. According to me, every person should have some ethics in life and also in business. It plays a very important role in business to create a branding of a person and also for creating a brand for business which is responsible for business growth and also in expansion. If a person has ethics in business it increases trust and respect in the customer’s mind and others also.
Effects of Unethical Business Practices
Businesses that act unethically in ways that break the law may face large fines and other penalties.
Poor employee performance:
A lack of ethics within a company affects the way employees do their job. People can decide that because leaders can break the rules, they can too. This can lead them to damage the company.
An innovative idea can make the whole world run.