Why is ethics important in business

Businesses, societies and communities all experience success when ethics are applied consistently . Whether you own a car rental company or a hairdressing parlor, business ethics can affect the way that your brand is perceived. Ethics even allow you to build strong relationships with your clients.

Ethics are Important for Everyone

Everyone in your organization needs to learn how business ethics can be applied in your sector. If a customer representative asks, “Why is ethics important in business”, take the time to ensure that they understand how it affects everything that they do.

The Behavior of Individuals Affects Perception

Ethics are not an abstract idea but some people within an organization may think so. These people think that the rules don’t apply to them. For example, a truck driver may think it’s okay to provide a friend with some of their cargo at no cost and without approval from their manager. They have violated the standard of right and wrong and displayed poor business ethics.

When a customer sees a member of the team displaying poor business ethics, it erodes the level of trust that they have when doing business with the organization. if a customer enters a restaurant and sees a chef adding wheat flour to a meal that is supposed to be gluten-free, that’s also poor business ethics.

It’s a lack of integrity that causes the customer to lose trust. They may tell their friends who need to stay away from wheat products, that the meals at the restaurant may be suspect and none of them will buy meals there again.

Ethics are a Part of Social Responsibility

Each business operates within a community and the ethics displayed by that company affect the community.

As the business gives back to the community, they strengthen their relationship with the residents. When a business avoids throwing waste into the soil and water supply of the community, it reflects a sense of responsibility for their own actions and awareness of their responsibility towards others.

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