Business Ethics Can be Profitable
Business ethics can not only be profitable, but they are also vital to the success of any business, no matter how large or small. By setting an example of integrity and responsibility for its employees, a business establishes itself as trustworthy and engenders loyalty among not only employees but also customers and potential customers.
Many businesses and business leaders have set a poor example of business ethics and tried to take shortcuts to success and profitability. Recent years have shown clearly that these shortcuts and shunning of ethics leads to disaster and ruin in the long run. From shamed CEOs now spending time in prison to companies being forced to close their doors, unethical behaviour in the business world has caused more long term problems than it has ever provided short term gain.
The most successful, well-respected and profitable companies understand the importance of business ethics and demand high standards of their organizations and their employees. They understand the concept of leading by example and do so very well. This leads to employees having clear understanding of the expectations set forth by the company. Employees who know that unethical behaviour is not only not encouraged but will not be tolerated are much more likely to act in a more responsible and ethical manner.
A business that operates unethically may gain some short term financial incentives, but the overall effect of the damage to integrity and reputation is not worth the risk. Businesses depend on the confidence, trust and respect of the customers they serve. Once this trust is violated, the company must spend massive amounts of time, money and resources to "fix" the problem. Avoiding the issue in the first place by practicing good business ethics in every aspect of operation not only leads to higher profitability, it avoids the unnecessary cost of damage control.
Setting a good example for employees also serves the purpose of avoiding loss due to theft and other unethical employee behaviors. An employee working for a company that cheats, steals and lies quickly learns that type of behaviour is acceptable and will inevitably emulate that behavior. Employees in that type of environment, even if otherwise honest people, will lose respect for the organization and will feel that it deserves whatever it gets. This leads to employees feeling justified in stealing either merchandise or cash, being less than careful in guarding sensitive information and even more detrimental behaviors.
Whether independently owned with few employees or a global company employing hundreds of thousands, all businesses must realize the importance of business ethics, not only to the bottom line but to the health and longevity of the company in general. No company involved in unethical business practices on any level will survive. Getting by with something for a while is far different from getting away with it and history has shown us time and time again that those who engage in unethical behavior rarely come out unscathed. The people at failed, disgraced companies like Enron could offer stearn warnings to any business that feels it is above ethics.