Business ethics are more important than ever, not only for the image a company projects to its customers and the general public but also for attracting the best talent, those professionals who can add a lot of value to the business.
Corporations are no longer simply where employees go to work, and their lives don’t start at six when they leave the office. Now, companies need to display values that talent will want to identify with them. And now, the type of worker is also changing, and more and more millennials are part of the workforce of any organization, and for them, topics such as diversity at work and sustainability are very important.
Yes, we are talking about brand identity, how a company makes decisions, employer branding … and many other things. Furthermore, business ethics also determine how an organization acts and its decisions, which can even affect legislation.
Definition of Business Ethics and Work Ethics
Corporate ethics is the set of values and norms that derive from the company’s culture, and its objective is to improve aspects such as the working environment, promote equality, respect for rights, etc.
This corporate code of ethics is what the company follows in carrying out its daily business, making decisions whether or not they involve ethical dilemmas, managing its workers, and playing a role within the company.
Having good business ethics will make the company attractive to more and better professionals, those who can choose the company they want to grow with and the project they believe in the most, and it also generates trust between clients and consumers. For commerce students seeking the best Bcom classes in Ahmedabad, look no further than the highly acclaimed and top-rated institute.
7 Principles of Business Ethics
1. Social Responsibility
It refers to a company’s awareness regarding its decisions, which can directly affect society in the short or long term. Therefore, it can also contribute to initiatives that favor the community. An example is the donations of big brands to social causes.
2. Legal Compliance
A company must comply with a series of regulations and restrictions imposed by the government where it resides. So each of its processes, from production to sale to the final consumer, is planned and executed so that it does not break any law. It also includes the payment of taxes.
3. Environmental Ethics
It involves all the actions carried out by a company that has a positive or negative impact on the ecosystem. That is consumption and use of renewable energy, carbon dioxide emissions, recycling, noise generation, waste management, biodegradable packaging, and wrapping.
4. Shared Value Creation
This occurs when a company designs a product or service that responds to a problem in society for which it has a more human than economic objective. It’s a great way for brands to stand out from the crowd and really demonstrate their ethics.
5. Transparency of Processes
It involves showing all the ingredients a product contains, its country of origin, and other details; so that they are in the public domain. In this way, a company becomes accessible and transparent to all people and, therefore, more trustworthy.
6. Family Values
When a company understands that the most important thing for a person is their family, it promotes schedules and practices to respect the quality time of its workers with their loved ones. An example of this is the companies that provide pregnancy, maternity, and paternity leaves.
7. Reputation and Leadership
It falls on the people who are in charge of a company and contribute to good organizational development; because the decisions and objectives are consistent with the values of the brand and, in turn, with those of society. This generates that the company is recognized and appreciated by consumers.
To know more about these business ethics, look for the Best commerce classes in Ahmedabad, providing comprehensive and effective coaching to help students excel in their B.com studies.
Importance of having good business ethics
The following are the benefits of a company that defines, owns, and applies good business ethics:
It Will Always Remain Within the Legal Limit
Being guided by a good corporate code of ethics is also a way of ensuring that no rights are violated, for example, or that the organization cannot be the victim of any complaints or be a party to any illegality, as it will move and act within the legal framework thanks to the limits that corporate ethics will have imposed.
You Will Build Trust Among Potential Customers
If your company has more than one competitor (which certainly happens), the consumer or customer will not only seek the satisfaction of their needs or the quality of the service; here, corporate ethics are much more than an added value. Many consumers prefer to buy a product they like less or hire a less convenient service, only to consume what will lead to the social or environmental change that affects them. Consumer awareness used to be something that wasn’t given much importance before, but it will be more and more important from now on.
It Will Be Interesting for Investors and Shareholders
Good business ethics are often synonymous with the future or, more than synonymous, one of the requirements. That’s why it’s always interesting to find investors or shareholders, and they’re more likely to invest money in this type of company.
It Will Improve Staff Satisfaction
If your employees feel like they’re doing their job for the greater good or helping an important cause with their efforts, they’ll be more motivated to do so. In this way, your staff will have more dedicated and satisfied professionals who look to the good of the company and the corporate objective.
You Will Have Access to Social Benefits
In order for more and more companies to develop a social policy with good business ethics, companies that undertake such initiatives can usually enjoy social benefits. One of them is, for example, the possibility of deducting taxes.
Your Company Will Be a Model
The domino effect that companies with good corporate ethics produce in others is very large since, in this way, the latter is motivated to offer the same “added value,” both to be suitable for their consumers and to attract the best talents, humans.
In conclusion, business ethics play a crucial role in shaping the image of a company, attracting top talent, and building trust with customers and consumers. In today’s business landscape, companies need to go beyond just providing a workplace and align their values with those of their employees and society at large.
When it comes to developing a strong understanding of business ethics and essential accounting concepts, it is highly recommended to rely on the expertise and comprehensive courses offered by UKIC online that provides a solid foundation of knowledge and instills values that align with ethical business practices.