The Importance of Business Ethics

Several factors play a role in the overall success of a company. As much as we can look directly at the finances, financial statements alone are not enough to represent the overall health of a business. Instead, we have to look at a variety of different factors such as organizational culture, company goals, company philosophy, work culture, and most importantly the organization’s business ethics. In the grand scheme of things, business ethics is the pinnacle point in developing the vision, beliefs, and goals of a company. Without it, the purpose for success is no more than just making a quick buck.

For entrepreneurs, they are incredibly unique in the business world because, more often than not, they put a stronger investment in the values and beliefs of their company ahead of their monetary gain. While financial gain is always a great evaluator, many businesses, especially the titans we see today like Google or Apple, are built with a philosophy in creating products and services that can benefit the everyday person. In fact, this type of ethical mentality shapes not just how customers and users view businesses, but how businesses view themselves.

Because of this, it is imperative that you as a business leader are able to foster and establish a strong sense of morals within your company. Before we continue, let’s understand what business ethics really means. By definition, business ethics are the moral principles that guide the way a business behaves. In fact, this type of mentality and approach helps cultivates the personality, culture, and work ethic passion that drives your employees each and every day. In addition, business ethics also dictates those overarching decisions by dichotomizing various actions as ‘right’ or ‘wrong’ for the customer. Having this type of clear and precise mindset not only improves work culture productivity, but also customer client satisfaction.

To explore this further, let’s look at how business ethics impacts a company in three different stages:

  • Ethics in the Product and Service
  • Ethics with Leadership and Management
  • Ethics with Employee Work Culture

By exploring these three avenues, you will be able to internalize and comprehend the importance of having a strong sense of business ethics within your company.

Ethics in the Product and Service

In any successful business, the product and service of a company is not just simply to sell. Instead, the overall mantra is to create a transitive change in how we see world. As an entrepreneur, you want to make sure that your product and services represent the wants and needs of their customers. Just take a look at Apple. Under Steve Jobs leadership, he felt that no matter what product they made, they can always and forever make it better. That business ethics of ‘for the customer’ than ‘for the customer’s money’ is what helped set them apart from the rest of the herd. To help aid with your endeavors, go back to your vision and goals. Ask yourself those ‘why’ questions and internalize them. Once you are able to answer them, begin shaping that mentality for what it can do for the rest of the public.

Ethics with Leadership and Management

Management is not just the act of micromanaging a group of people. Instead, management helps to set the tone for an entire company’s day-to-day. To help enhance and perfect the logistics within your company, it is absolutely vital that you establish a strong and prevailing management philosophy for your team. This ethical practice and behavior will help shape those individuals of your organization as direct leaders and examples within the workplace. In addition, your business philosophy will be able to help attract and retain highly talented individuals to build and maintain your positive reputation so that you can reach your future endeavors.

Ethics with Employees

In most cases, your employees are usually at the front of the lines engaging and interacting with your customers. Because of this, it is absolutely important that you are able to instill the vision, goals, and ethical belief that your company has in each and every one of your workers. In many studies, employees who work for a company that demands a high standard of business ethics in all facets are more than likely to both perform their job duties and stay at a particular company. The reason why is simple. Many people want to know they are making a difference. By establishing that sense of value, your employees will be able to see the higher purpose of their work each and every day.

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Originally published at mikuskins.com.