When we hear the term “business ethics”, what is the first idea that enters our minds? Some people will say that business ethics is “acting in accordance with the ethical principles and theories applied in our society”. However, “business ethics” is one of the best “ideas” that can make businesses successful and profitable. In my speech today, I am going to “re-examine” the idea of business ethics in order to help entrepreneurs and corporations understand the importance of embracing the concept towards a successful corporate culture.
Business ethics is a term used to describe the behavior of business organizations. Business ethics examines the actions of leaders and stakeholders in any given organization. Although “ethics” focuses mainly on performance, actions, and activities of business organizations, there is need to embrace the idea of “business ethics” in order to make businesses successful and responsible. Business organizations should apply the idea of “business ethics” to its activities including leadership, service delivery, and product development.
With such an approach, organizational leaders will make accurate and ethical decisions in order to promote a positive business culture. Business managers and leaders are also expected to behave in an ethical manner. Business organizations and entrepreneurs should always encourage their employees to make ethical decisions. This approach will ensure business organizations promote the best ethical practices. Most of the successful companies today have always embraced the idea of business ethics.
It is also necessary for organizations to practice Corporate Social Responsibility (CSR). The idea of Corporate Social Responsibility and proper ethical behaviors can bring numerous gains to a company or business organizations.
Any company that fails to act ethically loses its business and eventually become unprofitable. As well, ethical behaviors are necessary because they help businesses attract new customers. This will definitely boost their profits and sales. This explains why business leaders should embrace the idea of “ethical behaviors” and proper leadership strategies in order to make their companies successful.
It is also agreeable that the question of “labor” continues to affect many companies today. For instance, most of the companies that do not embrace the best ethical practices tend to fail in their businesses. The companies are unable to attract new employees. On the other hand, “ethical companies” will always attract new employees thus reducing their business costs. As well, an ethical company will find it easier to attract new investors and eventually become profitable.
It would be necessary for businesses to re-examine their practices and activities in order to remain ethical. There is need for companies to use various ethical principles and theories in order to improve performance. It is agreeable that unethical behaviors will eventually damage the reputation of a firm. This will make it less attractive to its customers and stakeholders.
Along with other ideas such as proper organizational structures and leadership strategies, businesses should reexamine their ethical practices because this is an integral part of an organization’s culture. There is need for organizations to embrace ethical behaviors and practices in order to make the best decisions and address the needs of their stakeholders.
Business ethics helps companies improve their working conditions and support the needs of their stakeholders. Business ethics is definitely the best concept for firms to realize their potentials and become successful in their respective industries. I will conclude by encouraging business leaders and entrepreneurs to embrace the importance of business ethics. This will be the first step towards a successful business.