The concept of ethics might not be on the forefront of most people’s minds on a day to day basis. After all, it’s enough to just try and do the ‘right thing,’ right? However, your approach to ethics can impact the success (or lack thereof) of your business in a number of ways. No matter the type of product or service your business offers (or how awesome they are), solid business ethics remain extremely important. Here is why:
Reduced risk of legal woes
History is rife with companies that sunk as a result of legal actions and hefty fines being brought against them. While the legal and regulatory system can be difficult to understand, in many instances, trouble could have been avoided if a company had simply practiced good moral ethics. At the end of the day, following an ethical code when making all business decisions can help avoid costly lawsuits and other run-ins with the law.
To protect your company’s reputation
Having a good reputation among your peers is something to feel proud of; the same goes for a business in its industry. A company that practices good ethics in the areas of sourcing raw materials, product development, employee relations, treatment of customers, and social responsibility, develops a good reputation and increases the likelihood that people will want to do business with it. Your brand will stand out as one that is worthy of emulation, potentially attracting attention that could significantly boost your business in the following ways:
- More clients and customers interested in what you have to offer
- Invitations to join trade boards and community organizations
- Willingness of investors to assist with funding
- Other businesses seeking partnerships with you
- Invites for business leaders to host events, speak publicly, mentor others, etc.
- Recognition in the media (magazines, TV shows, and newspapers)
The best talents will want to join you
Whether it’s someone fresh out of college or a professional who’s moving up the ranks, smart people want to join companies that have good reputations and great leaders (since it all starts at the top). By practicing good business ethics, you send out a signal to current and prospective employees that your business environment is one where they can feel confident in giving their best and staying with your company, instead of seeking employment elsewhere. This, in turn, will strengthen your business and help save money by reducing recruitment and training costs.
I’ll end by pointing out that when business executives practice good ethics, it empowers employees to do the same in all areas. Altogether, it sets the company up for long-term success.
◩ ABOUT ME / À PROPOS ◪
‘Mylène’s Monthly Stories’ (or ‘MMS’) gives you an answer to something you’ve been curious about. ⑇ Are you a songwriter or have friends who are? I co-founded Tunedly, a selective music publishing and recording studio. ⑇ The Homepage of my website is the best place to learn about me. ⑇