The business ethics or the code of conduct of a company is the set of rules and regulations that it maintains to establish its legal and moral character. A company needs to look at feasibility or the compliance of both the legal and value-based components that are necessary for its success.
Business Ethics: Why are They Important
An unethical short course to run a business may look easier and can earn you some short term benefits too, but no organization or business can gain long-term gains and success without ethics. Some corporate executives consider them to be a hindrance to the success of their business and opt for unethical ways to run the business but often regret it. Whereas, transparent and honest business policies create a positive environment for growth in the organization.
What Is Organizational Social Responsibility
Every organization demands and expects its employees to follow its code of ethics or rules of that organization. These rules include the standards of integrity of the employee towards the company, its customers, employees, and others associated with the organization.
The ethical practices that can help an organization in winning the trust for the customers and investors that can bring long-term benefits to the company are given below:
Trustworthiness and Honesty
The most important component of business ethics is trustworthiness. A company can enjoy the long term benefits and success only if its clients have deep faith in the organization. A customer finds a company trustworthy only when they know that the organization will not only give them time and quality service but when they also believe that the organization is honest and is committed to their benefits first.
Hence, it is necessary for an organization to maintain an honest approach and build a reputation of a trustworthy organization by fulfilling its commitments on time without compromising on the quality of the service.
When a client or a partner agrees to join hands with your organization, he shares some of his important and confidential information like his business dealings, the client base or even some bank details with you. It is important for your organization to have its own strict, written confidential policy and it should be mandatory for all the team members of the organization to follow this policy. No one in the organization should, in any case, compromise with the confidentiality of the client or the partner.
Creating An Open and Fear-less Environment
Creating an open environment where the employees have the freedom to think and work freely. The office ambiance should encourage the employee to come forward and report any kind of misconduct or non-adherence to the company’s rules and regulations without any fear. That’s not all! The company should take the responsibility of an employee’s protection if he faces any threats after reporting the wrongdoing.
Businesses are not run on the basis of competition only. Setting and following the above ethics will earn trust and strong goodwill.