Introduction
Organizations in the customer service sector interact directly with their clients in the provision of goods and services. The nature of their relationship and the mechanisms applied to maintain loyalty must adhere to relevant ethical principles. While the implementation of profit-generating initiatives is essential, the observance of ethical principles is necessary for consumer trust and loyalty, which dictate the degree of success experienced by organizations in the customer service sector.
Ethical Leadership and Training
Ethical leadership and training are vital to the delivery of services in the customer service sector. Halvorsen et al. (2022) demonstrate how the application of ethical principles enhances the profitability of businesses. Ethical leadership and training impact employee performance because business ethics are inextricably linked to consumer orientation. The enhancement of ethical business training and leadership is essential because it dictates how employees relate to and interact with consumers.
Corporate Social Responsibility
It is vital for organizations to maximize their corporate social responsibility (CSR) initiatives to experience success. Most consumers are interested in CSR initiatives that prioritize the environment and society, while a limited number are focused on employee-related projects (Hsu & Bui, 2022). A study by Hamid et al. (2021) demonstrated that ethical CRS positively influenced consumer loyalty. In addition, the researchers noted that CSR positively impacted customer gratitude (Hamid et al., 2022). It is worth pointing out that there is a positive correlation between consumer loyalty and gratitude. A misguided focus on profits rather than ethical principles has a detrimental impact on an organization’s image (Sroka & Szántó, 2018). The resultant decline in trust negatively impacts overall performance as well as client support. The implementation of ethical CSR initiatives is an effective tool that can be used to leverage consumer gratitude and loyalty in the customer service sector. The enhanced visibility associated with the practice informs consumers of the organization’s desire to contribute to the alleviation of social problems in the community within which it operates. Ethical CSR is important because it allows managers in the customer service sector to develop practices that generate elevated levels of gratitude, which can then be converted to loyalty among clients. The resultant increase in business as a result of returning customers will enhance their institutions’ profitability.
Organizational Culture
An organization’s internal operations significantly impact consumer perceptions regarding ethical practice. A seller’s behavior inevitably impacts client loyalty, trust, and satisfaction (Mansouri et al., 2022). The cultivation of a strong organizational culture that prioritizes core values, innovation, effective management of human capital, and customer orientation is essential for success (Metz et al., 2020). In addition, all the aforementioned measures facilitate the development of policies and management practices that enhance consumer satisfaction.
An organization’s culture determines the means through which employees interact with consumers. The promotion of ethical practices in all aspects of the business means that clients will develop positive associations that translate into loyalty and profitability. Organizational culture is important because it is the foundation upon which businesses in the customer service sector are built. An institution’s prevailing practices determine the quality of interactions between employees and clientele.
Conclusion
The prioritization of profit-generating initiatives, while important, does not supersede the implementation of ethical principles in practice. Ethical leadership and training, corporate social responsibility, and organizational cultures that prioritize moral principles are inextricably tied to the level of success experienced by organizations in the customer service sector.
References
Halvorsen, B., Bartram, T., Kia, N., & Cavanagh, J. (2022). Meeting customer needs through ethical leadership and training: Examining Australian bank employees. Asia Pacific Journal of Human Resources. Web.
Hamid, A. A., Amsami, M., & Ibrahim, S. B. (2021). Relationship between ethical corporate social responsibility and customer loyalty: The mediating role of customers’ gratitude. Independent Journal of Management & Production, 12(8), 2194–2216. Web.
Hsu, Y., & Bui, T. H. (2022). Consumers’ perspectives and behaviors towards corporate social responsibility—a cross-cultural study. Sustainability, 14(2), 615. Web.
Mansouri, H., Sadeghi Boroujerdi, S., & Md Husin, M. (2022). The influence of sellers’ ethical behavior on customer loyalty, Satisfaction, and Trust.Spanish. Journal of Marketing – ESIC, 26(2), 267–283. Web.
Metz, D., IlieČ™, L., & Nistor, R. L. (2020). The impact of organizational culture on Customer Service Effectiveness from a sustainability perspective. Sustainability, 12(15), 6240. Web.
Sroka, W., & Szántó, R. (2018). Corporate Social Responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship, Management and Innovation, 14(3), 111–126. Web.