ANALYSIS OF ETHICS IN BUSINESS AND IT'S IMPORTANCE

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CONTENT OUTLINE

• INTRODUCTION
• WHAT IS ETHICS?
• DESCRIPTION OF ETHICS IN BUSINESS
• EXAMPLES OF ETHICAL BEHAVIOR
• WHY BUSINESS ETHICS IS IMPORTANT?
• CONCLUSION

INTRODUCTION

It is no news that successful businesses all over the globe are failing because research findings have shown that profitably running businesses are suffering from a downfall and some seemingly effective businesses on the other hand are experiencing a decrease in their profits and popularity. One of the main reasons behind these surprising failures is the lack of business ethics. The inability of global entrepreneurs and international organizations to understand what is right or wrong and the ability to distinguish between them is a big blow and a minus to their business. The importance of ethics in business cannot be overemphasized and must be apparent throughout every aspect of business.

WHAT IS ETHICS?

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In philosophy, ethics is a branch of knowledge that deals with the study of principles relating to right and wrong conduct. But for the purpose of this article, I would liken ethics to be those standards, ideas or beliefs that influences people's behavior and attitudes especially when it has to do with their profession. It is important every business have a code of ethics. A business that is based on ethics, will undoubtedly remain sustainable over time. Suffice to say that for a business to prosper and maintain its profit, it must be founded on certain ethical principles.

DESCRIPTION OF ETHICS IN BUSINESS

When we talk about ethics in business, we mean the code of values and principles that govern the actions of an individual or a group of people, regarding what is right as against what is wrong in business. Business ethics is not just to gain customer's trust, loyalty and public applause, absolutely not! It really goes beyond that. It is rather geared at focusing on the bottom line, the social, environmental, as well as the economic impact of an organization in providing the basis for sound stakeholders relationships that can sustain a business into the future.

An individual's sense of ethics has a great impact on his business or the company he works for. Unethical behaviors like bribery, harsh and brutal discipline, deliberate use of harmful substances, low wages, enforced overtime, poor working conditions, discrimination and violation of promises just to mention but few would drastically cause a deflation in business, and would tarnish the image of a company or organization. But when a business is known to be transparent, it is most likely to be become successful. Hence the need for 'ethics in business'.

EXAMPLES OF ETHICAL BEHAVIORS

Beneath are few examples of ethical behaviors;

• PUNCTUALITY AND CONSISTENCY:

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As an employee, make it a commitment to always report to work and that on time. Lateness should be shun. If you will be late, give an advanced noticed to your manager explaining to him why you won't make it to the office at the stipulated time. Also ensure you are consistent at work. Should there be any reason(s) why you won't be at work call your boss to have him/her informed before time.

• BE POLITE:

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How do you treat customers? How do you handle the telephone? How do you talk to your boss? Do you pass on aggression to people? Being polite, is a strong ethical behavior every entrepreneur should possess. Being rude is unethical and drives people and opportunities away from you. When dealing with customers, be polite. Use the word Please, Sorry, thank you, excuse me, and pardon me, when necessary.

• PROTECT COMPANY'S PROPERTIES:
  Whatever tools or equipment you are provided to work with, do ensure you handle with care. Endeavor to have them protected and maintained through out your stay in the company and make sure they are returned in good condition upon termination of your contract.

• SAY GOOD THINGS ABOUT YOUR COMPANY:
  Every member of an organization that has the progress of the company where he belongs at heart will do everything within his power to see that the image of the company is protected and not just that but also promoted. It is unethical to say ill things about the organization in which you belong or against your boss. Even if you no longer work for the organization, don't ever tarnish the image of the company you once worked for.

• PAY ATTENTION TO YOUR DRESSING STYLE:

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You will be addressed the way you dress. How you look like determines what you attract. Truth is, the way you dress can impact the work atmosphere and the way people relate to you. Every member belonging to one organization or the other carries the image of that company. This is very important. Dress smart and follow the dress code of the company you belong to if there are any.

• BUILD A HEALTHY RELATIONSHIP WITH YOUR CO-WORKERS, CUSTOMERS AND AUTHORITIES:
  As stated earlier, one of the greatest asset of any organization is human capital. Our relationships with people both inside and outside the working environment matters a great deal. Ethical behaviors like submitting to higher authorities, respecting your co-workers and also customers, is key to productivity. Your countenance speaks volume. Wear a smile often, this will make you likable and approachable.

WHY ETHICS IN BUSINESS IS IMPORTANT?

Having considered what business ethics entails, the question now is why then is ethics in business important? There are several reasons why ethics is important in business. These reasons include the following;

• CUSTOMER'S TRUST AND LOYALTY:
  Business ethics generally leave a long lasting impression on the customers and this impression in turn builds trust and a long term relationship, which would eventually lead to repeat patronage and referrals of others for the organization over time. It must be noted that the only way to gain customer's trust in business is through transparency.

• PARTNERSHIP:
  For any organization to thrive in business in this 21st century and be ahead of its competitors. The place of strong ethical practices and behavior should not be trivialized. The only way to get good partners is to have a good reputation both in terms of a track record and in terms of the overall business.

• LONG TERM SUSTENANCE OF THE ORGANIZATION:
  The degree to which managers and employees display ethical conducts in their operations will determine the sustainability of the business. When managers displays behaviors that are unethical like not meeting up with worker's salaries or wages on time, Imposition of unfavorable laws on the employees, harsh or brutal discipline can hurt the employees, customers, and members of the general public as well as the business itself. But organization managed by ethical managers would survive for a long time.

• ENHANCES CORPORATE REPUTATION:
  Ethical practices goes beyond getting customer's trust and loyalty as earlier stated. It encompasses in our dealings with people. A business that behaves in an ethical way will often find that the community offers its support in return which can also be invaluable to the success of the business. But a change in behavior can lead to a number of negative impacts such as a reduction in market share, decrease in profit because customers and staffs loyalty will be affected.

• FACILITATES RECRUITMENT OF STAFFS:
  When organizations behaves ethically, It attracts more employees to work for the organization, make the employees wants to stay with the organization, reduce labor turnover as well as increase productivity.

CONCLUSION

The place of ethics in business, its importance and implication in the business world cannot be overemphasized. Therefore with these in mind, there is need for global entrepreneurs and international organizations to exercise due diligence in conducting their business in a socially and ethically manner, by so doing businesses will undoubtedly be successful.

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