The term ‘Business Ethics’ talk about the whole system of moral principles and rules of the conduct that are practical to every business of any industry. Business being a social organ shall not be run in a way harmful to the interests of the society and the business sector itself. Every profession or group structure consist of specified do’s and do not’s for its associates. The members are equipped with a standard in which they tend to function. These standards are swayed by the usual economic and social circumstances. The codes of conduct are sometimes revised as per the varying circumstances.
In simpler words- Business ethics is generally refer to be aware of the things that are right and wrong in the work place. Let’s discuss this topic in a more elaborated way.
- Eliminate or prevent malpractices: Some immoral business owners engage themselves in malpractices reveling in unfair trade practices such as- black-marketing, bogus high pricing, adulteration, deception in weights and measures, selling of false (duplicate) and dangerous goods, prohibited hoarding, etc. These business malpractices are detrimental to consumers and the protection of society. Business ethics aid to halt these violations and safeguard society. It formulates a good business environment for everyone.
- Augment customers’ confidence: Business ethics are required to enhance the customers’ confidence about the quality, efficiency, reliability, quantity, price, etc. of the commodities. The customers have more faith and confidence in the businessmen who support ethical business rules or policies. They feel secure that such businessmen will not betray them. Moralities force businessmen to maintain trust by providing quality products and services to consumers.
- Survival of business: Business ethics are quintessential or obligatory for the survival of any business. In today’s cut-throat competition, it’s not easy to overcome the competition. Many businessmen do not respect consumers’ rights which can make them fall in jeopardy. Business ethics are obligatory to secure these fundamental rights of the consumers. A business who protects its consumers’ rights, protects its existence. The businessmen who do not understand business ethics well will only avail short-term success, but they will fail to survive in the long run. This is because their cheating can have dire consequences. After understanding being cheated, the customer will not purchase products or services from that businessman. He will also tell others not to purchase from that businessman who cheated his customers in order to make profit. So, this will malign his goodwill or image and instigate an abrogating reputation in the market. This will lead to failure and even the closure of the business. Therefore, if the businessmen do not obey ethical rules, he will fail in the market. So, it is always better to obey an appropriate code of conduct to sustain in the competitive market. Hence, ethics is imperative for the continuance of business.
- Safeguarding employees and shareholders: Business ethics are mandatory to safeguard the interest of employees, stockholders, competitors, dealers, retailers, customers, government, and more. It shields them from abusing each other via conducting illegal trade practices like cheatings or frauds. Ethics constrains every entity participating in the business activity to properly execute its role by adhering to the established code of conduct. Since everyone is disciplined and work properly, business flourishes well in the long run.
Don’t you just hate when you have to struggle with legal issues that come because of not obeying the necessary business ethics? If yes, then ask every employee to follow necessary rules that can take your business to the sky of success. Don’t let malpractices ruin your business.