Dear Business Leaders,
Business ethics are ways in which a business is operated in a moral manner. Ideally companies should follow these ethics to make profits. However, some companies, in a desire to earn quick profits, compromise on the maintenance of these ethics. Do you want a world in which businesses function in an unethical manner? Do you want to live in a world full of scandals and scams? Do you want your future generations to grow up learning unethical practices? My goal through this letter is to make all the businesses realise that following the core values and ethical practices is very important in order to succeed. Without these ethics no business can last for a long time.
Good Business ethics have many positive outcomes for businesses. Some of the positive sides are that there is no bad press about the business as if a business is working in an ethical manner then it has good press only. The only reason that the company is mentioned in the news is about a good topic. Another positive outcome is that the employees are always motivated to do work as the business is working in an ethical manner and due to such good reputation of the company the employees feel proud to work for such an organisation. According to a reliable source business ethics help as the consumer learns to trust the brand and also remain loyal to them. A company with good business ethics always keeps improving and keeps increasing the number of customers they have. Another reason is that any business with good ethics is very trustworthy because the business might tell everything to the public as they have nothing to hide from the public. For example Body Shop is a business that follows good business ethics as they completely refrain from testing their products on animals. Thus friends you will agree that for a business to do well it is the selection of ethics that brings success. “Whenever we see a successful business we know that somebody at sometime made an ethical decision.”
Companies without proper business ethics have many disadvantages that can make the company lose credibility. This could lead to the closure of the company. A company which works in an unethical manner has to always remain in fear as it has done unethical things and if the this information becomes public then that could totally destroy the image of that particular business. Also if the business has not been very trustworthy in the past then this could lead to investigations against the company and if found guilty there could be bad name for the company. . Also if the company has been working in an unethical manner and has not been following the country's law then the owners as well as the board of directors of the company might have to face penalties. For example Nestle is a company that has been involved with child labour for the production of their chocolates which leads to a poor reputation of the company. I am sure that all of you agree that we would love to be in the media for the selection of our ethics in doing business rather than being media for giving these ethics a skip.
Businesses with good business ethics have many positive impacts on the customer. Some of the positive impacts are that the customers who buy products from these businesses get products on a good value and the business does not cheat on the customers do get profits. According to Forbes when retailers, suppliers and other customers know that a particular organisation is working by a specific code of conduct that helps everybody and helps the environment and health and safety of the people. Then the retailers, suppliers and other customers start trusting the company and start believing that the company is good and that they actually work for a good cause.
Some business leaders might say that ethical businesses do not have access to as many business strategies as those with unethical businesses. Also In a period of economic crisis they cannot adopt unethical practices without damaging their reputation, and it can be harder for them to intentionally change their image when the market demands such an action. Also business ethics reduce a company's freedom to maximize its profits. But then an ethical business could be running fearlessly and profitably for a longer period of time.
In conclusion I would just like to write that, “Doing the right thing does not automatically bring success but compromising on ethics almost always brings failure.” And so in order for businesses to succeed the company must follow proper business ethics. So let's all take an oath of running a business in an ethical manner which would lead to the growth of the business and benefit the society at large.
Thanks and Regards,
CEO of ARKH International