Customers are so sensitive to this information and this can be the only reason they decide never to use that service again. Kemal must understand that in spite of the situation on the ground, the overall character of modern-day consumers leans towards supporting companies that are straight-forward in their dealings (DeGeorge, 2009). Adhering to ethical standards in an organization may seem to be less-rewarding, but the reality is that it bears long-term fulfillment. Quite often, ethical standards are considered to be long term asset to an organization.
The risk of taking part in such unethical activities may turn up to be so much to bear in the situation an act of that kind takes place. In essence, when a company makes loss in its financial performance, its reputation is less-affected. This is not the case when a company takes part in fraudulent deals in order to hasten its profitability. The name of the company can be easily tainted because of such deals and this can very complicated to reverse (Hartman 2004). Kemal ought to understand that the company’s reputation and image means a lot than anything else especially in the long term.
According to Oram (2010), guarding a company’s reputation and image may be expensive, but it is worthy the expenditure. In addition to the reputation of the company, Kemal stands personally liable in case such fraudulent deals backfire. This can be so much on him considering the responsibilities under him in connection to his family. It is not sensible for an employee to risk the welfare of the people he/she is supporting at the expense of the organization. In case this deal is fraudulently undertaken, Kemal’s career will be completely ruined if it comes into the lime-light.
This shows that such a move represents a risk that is rather avoided than managed in any other way. Kemal still has a bright career and should not allow to be carried away by a single deal that can eventually land him into trouble. In the same way, Kemal ought to understand that stakeholders’ interests ought to be safeguarded at all cost (Hartman, 2004). Every stakeholder has a stake in the organization and therefore their interests ought to be safeguarded. The decision by investors to invest in an organization is based on the trust and confidence that their funds are being invested feasibly and therefore they have expectation of better returns.
Any decision undertaken by the organization that risks the returns of investors must be avoided (Ferrell, Fraedrich & Ferrel, 2010). Apart from investors, government also represents a very important stakeholder in the organization. The government is entitled to tax and other related levies. In the same way, the undertakings must not be in a way that will lead to tax evasion on the part of the organization. The investor and the government represent many other stakeholders whose interest the company must be concerned about before taking any given decision.
Therefore, it is important for Kemal to be concerned about the long term interests of the company as well as his as opposed to immediate gratification. The company stands to gain more in the future by upholding to strict ethical standards (DeGeorge, 2009). Studies show that companies with strict ethical standards find it at ease dealing with both internal and external stakeholders. The fact that such organizations value fairness, honesty and integrity gives them confidence in dealing with all kinds of stakeholders in every day engagement.
With this kind of environment, it is very easy for the company to attract more investors to invest in their business (Shaw& Barry, 2012). The confidence of investors in these organizations is based on the strong believe that the decisions made by the company are determined by the deeply-embedded values. To such companies, ethics goes beyond setting policies and principles that prohibit such acts. This is because in most organizations, there are good policies prohibiting unethical activities yet internal stakeholders take part in unethical activities.
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