A number of factors play a role in making the business profitable, including management of teams of experts, dedicated, and productive employees, sustainable demand and a closer look at the bottom line. In addition to these well-known business practice, companies that implement a management philosophy that relies heavily on the business ethics proved to be more successful than those who act fraudulently. Although it may not be the first variable is the analysis of the profits of the enterprise, business ethics is an equally important catalyst for the success of the company.
Business Ethics in management
The organization’s leadership are key to its long-term success, and the rest in accordance with management philosophy based on ethics creates a positive example for all workers. Ethical standards of accounting, handling employees, the communications and information disseminated among the shareholders all obligations of the leadership team and may have direct impact on the overall profitability of the company. When these integral aspects of the business are not met with the resounding topic of business ethics from the top down, every aspect of the business under the management team has more potential to disruptions in the short or long term.
Business ethics and morals of the employee
This has been proven again and again that employees who are satisfied with the environment in which they work, are more productive than workers who are dissatisfied. Unethical practices in the workplace can cause massive unrest with the employees, which leads to great frustration what they are doing and their employers. However, when business ethics is encouraged by the leadership and managers of the company are for example, the ability of employees to focus on the work they must perform to make themselves and the organization successfully increases exponentially. Productivity increases when fewer distractions and morale is high, and this leads to higher levels of profit for the company. (For associated reading, see 5 unique ways to increase office morale.)
Employee happiness can also influence the trafficking and possession, as dissatisfied employees are more likely to look for other opportunities, regardless of higher pay or benefits at their current employer. Continuous recruitment and training of new employees can reduce the capital of the company can spend on income, ultimately decreasing long-term profits.
Business ethics and image
Companies would be nothing without shareholders and investors, and as such, working with business ethics in mind is the most important when interacting with these key players. It is common for the profitability of public companies to decline rapidly when they encounter situations when they discovered information about unethical behavior. When investor confidence is lost, it can be a struggle for the company to regain the trust of society, of investors and of shareholders; profitability can take years to rebuild. The company that lay the Foundation of business ethics in all aspects of their work are more likely to become and remain profitable, than those that conduct business in an insulting behavior.
(For associated reading, see: business ethics evolved over time?)