When employees complete work in a way that is based on honesty and integrity, the whole organization benefits. Employees who work for a corporation that demands a high standard of business ethics in all facets of operations are more likely to perform their job duties at a higher level and are also more inclined to stay loyal to that organization.
Business ethics differ from industry to industry, and nation to nation. The nature of a business's operations has a major influence on the ethical issues with which it must contend. For example, an ethical quandary arises for an investment brokerage when the best decision for a client and their money does not coincide with what pays the brokerage the highest commission.
A media company that produces TV content aimed at children may feel an ethical obligation to promote good values and eschew off-color material in its programming.
A striking example of industry-specific business ethics is in the energy field. Companies that produce energy, particularly nonrenewable energy , face unrelenting scrutiny on how they treat the environment. One misstep—whether it is a minor coal ash spill at a power plant or a major disaster such as the BP BP oil spill—forces a company to answer to numerous regulatory bodies and society at large regarding whether it skirted its duty to protect the environment in an aggressive pursuit of higher profits.
A stringent, clearly defined system of environmental ethics is paramount for an energy company if it wants to thrive in a climate of increased regulations and public awareness on environmental issues. When it comes to protecting their customers' privacy and security, however, their ethics are examined very closely.
A particular area in which technology companies must make tough ethical decisions is marketing. Advancements in data mining technology enable businesses to track their customers' movements online and sell that data to marketing companies or use it to match customers with advertising promotions. Many people view this type of activity as a major invasion of privacy. However, such customer data is invaluable to businesses, as they can use it to increase profits substantially.
Thus, an ethical dilemma is born: To what extent is it appropriate to spy on customers' online lives to gain a marketing advantage? The importance of business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond. As with all business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term.
The reputation of a business in the surrounding community, other businesses, and individual investors is paramount in determining whether a company is a worthwhile investment. If a company is perceived to not operate ethically, investors are less inclined to buy stock or otherwise support its operations. The world can no longer afford that kind of obedience. Check back next week when Ms. Driscoll and Dr. Hoffman provide a point program for implementing values-driven management.
She was elected a member of the Board of Governors of the Investment Company Institute, the national mutual fund association, and served on its audit and executive committees. Also, she served as a member of the Advisory Group on Best Practices to Enhance the Effectiveness and Independence of Mutual Fund Directors which released its report recommending best practices for fund directors in and was honored by Institutional Investors as the Mutual Fund Director of the Year.
She is a director of ICI Mutual, the captive insurance company for the mutual fund industry. Driscoll has been a director, trustee and overseer of many civic and business institutions, including the Southwest Florida Community Foundation where she chaired the finance committee and serves on the executive committee.
Among Ms. The sweeping global impact of COVID has created what many believe is the greatest disruption for internal audit in the The deadline for E. A diverse, equitable and inclusive board culture contributes to organizations' success by positioning directors and senior executives to add value In recent years, corporate directors have faced an increased risk of shareholder derivative litigation, often based on claims of mismanagement Got a news tip?
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If business decisions are made with that in mind, you can save the stress of having to defend your company against lawsuits and fines. All these factors above help the company grow, have bigger profits and a strong bottom line. At Charter College, studying ethics is a key part of our business programs , along with other fundamentals that can help you build a long, successful business career. Contact us today for details. Skip to main content. Business Management, A. Business Administration, B.
Medical Assistant, A. Medical Billing and Coding, A. It is true that the culture of a company influences its employees and also the decision making factors at every level. Most large multinational corporations have policies related to Corporate Social Responsibility in place; stressing on the need to give back to society and adopt more environmentally friendly practices. In this post we would be focusing on how following ethical business practices make business sense and can be profitable.
Strong business ethics will help you attract people who fit your company culture and relate to your business, thereby ensuring that you have trustworthy employees working for you. Your employees will respect your company only when they feel they are respected by you, which again boils down to the trust factor.
Once you build a bond based on integrity and trust with your employees, they would feel proud of being associated with your business, avoid malpractices and become loyal instead. The actions of your company and your employees reflect your company culture.
It slowly becomes an influential factor towards how the public perceives your company. Based on this, your business can create a positive image and earn respect and adulation for what it does as well as gain a favorable market position, or it can create a negative image and lose out on customers. Ethical practices will help you create a strong public image which can help your company tide over difficult times and withstand tough competition even in a slow economy.
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