Advantages of High Ethical Standards in Business Firms - Essay Example

ADVANTAGES OF HIGH ETHICAL STANDARDS IN BUSINESS FIRMS Name: Tutor: Institution: Course: Date: ADVANTAGES OF HIGH ETHICAL STANDARDS IN BUSINESS FIRMS Introduction Ethical standards refer to the set principles, rules and regulations that give a certain institution, organization, religion or belief a sense of identity. These rules when followed create a sense of belonging and in the process create an atmosphere of understanding, respect and value. In many firms, businesses or organizations in the commercial world, these ethics tend to portray a sense of control, stable mindedness, duty and trustworthiness (Dorset 2008). An example is the depiction of ethics in the legal profession that have been passed down over many generations to make the legal sector one of the respected no nonsense sectors yet. The adaption of the importance of the same ethics in many firms today however has brought many advantages in the economy sector, starting with creation of better relationships and the drawing of attention to what is in play (Ferguson 2005). Ethics could refer to dress codes, the manner of running business, the appropriate communication skills, and the fairness in every transaction and the overall equality in treatment of both the customers and the staff at the workplace. The competitive environment in many firms and organization today forces many of the businesses to find different or perhaps outstanding alternatives to stand out from the rest. Most of them realize that the quality and quantity of the products reaches a time whereby there is equality and no further stretch that can be achieved (Dorset 2008). In other instances, most organizations have realized that over emphasis on their products may lead to the loss of customers and result in poor profitability margins. Businesses however, have realized that with a strong customer foundation, there is the ability to achieve a competitive edge that may rise above those with whom they compete. The creation of partnership, as well as, the collaborative relationships with customers has sufficiently achieved the overall attention of the consumers and the corporation’s (Ferguson 2005). To foster this relationship even further however, how the customers view the organizations and their conducts is what cements the relationship and widens the margins. Professional ethics, so to speak, is what has solved many of the issue that is in the workplaces today. Numerous and varying viewpoints about the importance of business/professional ethics have been made over time. Some find that it is a tasking responsibility with meager achievements especially considering the classes and programs that ought to be created to keep all members of the workplace on the same page. Others of a similar negative approach find the unethical dealings as a much faster process that may be corrected in the future upon achieving the goals of the company (Adler 2012). Regardless, the positive viewpoints have by far by passed the few negative assumptions of many organizations of very low or no ethical standard whatsoever. Indeed, many reports have shown that the companies that advocate for ethics programs do enjoy quiet a number of competitive advantages. They may include the advantageous shift of efficiency in the operations within the workplace to a much higher level, higher commitment levels of the employees, increased levels of production of products and rendering of services, customer loyalty among others. Below is an analysis of these advantages. Advantages of Professional/Business ethics in Firms Primarily, the ability to build customer loyalty and retain the same customers over time is one of the greatest advantages of adopting a particular ethics code of conduct in any firm. Most customers feel the need to stick to corporations or organizations that have given them a reason to do so. Having a number of loyal customers is advantageous because it is one of the keys to a long and continuous business success. If a company has a reputation for admirable ethical behavior and conduct, they automatically achieve a positive image with which the business thrives higher than the competitors. Similarly, if the ethical behaviors are questionable in a way that unethical dealings or operations are uncovered, it hurts the company-customer relationship which may lead to the loss of loyal customers or a lack of chances with the new ones. Having to follow a particular ethical code of conduct that incorporates kindness, equality and deserving positions based on ones capabilities creates a positive environment and the workplace. If the company or the organization is already known and the ethical code of conduct is also incorporated in interviews and in the everyday dealings, the employees adopt suitable mannerism right at the interview and so on. The ability to regard one another with equality, kindness and a sense of responsibility enables the facilitation of team work. The oneness that the firm achieves in not being able to think independently but as a team, improves the overall productivity (Adler 2012). In addition, supervisors are able to trust the employees with the confidential and non confidential information alike, and thereafter, there is the autonomy and self sufficiency that comes with the individual. Employees are also kept on their toes because failure to follow the rules is punishable making them more crucial and effective in their areas of work. Many legal problems arise in contexts of unethical dealings and operations and thus management find them very cautious of condoning such acts. An example is the acts of corruption, theft, sexual abuse in the workplace, cutting corners to pursue quick profits and so on. In other cases, the management may fail to ensure that the working environment complies with the provisions of the labor law, that there are no safety hazards pending rectification and that the products produced are not approved as fit to be in market. Numerous penalties therefore, may arise in the absence of the ethical rules of conduct and the productivity of the company will go down with it. The penalties such as legal fees, sanctions and closure of operation ruin the company’s name and thus it is important to avoid all these by being governed by ethical responsibilities. In addition to the above, the availability of the code of conduct especially in a business firm creates a sense of security both to the employees and the customers. This is to say that many occurrences in the work place may lead to distress on a client especially if a huge loss is incurred against him/her (Reynolds 2012). In other ways, the code of conduct that is based on ethics makes the company or the firm liable for any breach on their part either in operation, treatment or production. Numerous businesses have variety of stakeholders, donors, shareholders and other support systems that may include loans from banks and individuals (Adler 2012). A clever organization, entity or individual will ensure that all matters concerning the services and products of the company they intent to invest in are standard. Ethical rules and standards therefore offer this certainty and make it much easier to get supporters especially in financial aid. This kind of reassurance has a win-win outcome on both parties and hence supporting the essence of high ethical standard in the firms. The ability to retain the good employs and get rid of the less productive ones is made more efficient by the having ethical standards in the first place (Reynolds 2012). Many employees that know what they are doing and that want recognition of their hard work and efforts follow rules. Their need to be compensated for their hard work and their dedication is the main reason why the ethical standards rise and separate the jokers from the much serious ones. Efficiency in the workplace is with no doubt improved with the presence with few people that are dedicated and those that know what they want in life. Likewise, many of the good employees are proud to be associated with a company that is successful, fair, and open and is concerned with the shaping of their futures as the company grows. Lastly, high ethical standards are vital in the company or firm kind of setting because it prevents the possibility of conflicts of interests. In an organization, especially one of the business sectors, the company in charge of the produce put to market has a fiduciary duty to the consumers or the customers. This means that, there is a level of responsibility in providing knowledge, true reports and actual information on what they are product is made of, why, if there are any side effects or defects among others (Fewings 2009). The ethical code of conduct values honesty in the company and in the relationship with the customers. Other than that, most ethical codes help boost the relationship within the workplace by ensuring it remains a work oriented setting and nothing else. Some codes have prohibited workplace relationships, others intake of drugs and alcoholic substances and most have ensured stability by making sure there is no form of harassment or segregation of any kind, be it gender, race or religion in the workplace (Fewings 2009). This initiative reduces the chances of creating conflicting interests and ensures there is common ground in all aspects of the business. Conclusion Indeed, there are always going to be the firms other companies that find short cuts and unethical dealings in the pursuit of growth and profits. There are many that luckily enough may not be discovered immediately as it may take time and there are others that there first attempt may be the last (Reynolds 2012). The need to be concerned of the unethical operations however is because of two main reasons; the discovery of the unethical operations which is unavoidable will blow out of proportion and perhaps attract the attention of the government and the law enforcement. Secondly, the companies may choose to follow the ethical way and set high standard and in the process win the trust of the customers, the employee and the government (Hill 2014). The limitations that the regulations in an ethical code is that, it ensure a company works within a limit that ensures growth and productivity and protects or rather controls the negative aspects from taking over. Trust that has been based on a proper ethical reputation may slowly become very important in future. The e-commerce environment is forever growing and the geographical settings may force shifts and moves especially away from loyal customer bases and others (Hill 2014). If such happens, having a trust-based relationship founded on ethical standards will ensure that customers will use every means necessary to continue being loyal to the business. Overall, the building of loyal customer bases, the attracting of efficient employees, the avoidance of legal actions against the company and the oneness in the firm will ensure the protection of the business and its operations at all costs. References Adler, R. B., (2012). Understanding human communication. New York, Oxford University Press. Dorset, G. J. (2008). The new American workplace generational diversity from four participating cohorts offering challenges, obstacles, and opportunities for success. Thesis (M. I. S.) -- Wayne State University, 2008. Ferguson, S. J. (2005). Mapping the social landscape: readings in sociology. Boston, McGraw-Hill. Fewings, P. (2009). Ethics for the built environment. London, Taylor & Francis. 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