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What Is the Importance of Business Ethics? The importance of business ethics should be obvious throughout every area of the business. When a business is known for dealing honestly with all people, from its employees and customers to shareholders and vendors, it is more likely to become successful. While ethics is a subjective topic that may mean different things to different people, the importance of business ethics still remains in all types of corporate settings. The importance of business ethics can be seen in hiring and business management practices.
The initial people whom the business hires should be aware of the values and ethics practices of the business, so when they begin to take over the hiring process, they can continue these practices. When a business is managed well, employees will generally feel that they are being treated fairly; this is beneficial for the business because it helps the company to hire and retain excellent employees, which is instrumental to the overall success of the company. Of course, the importance of business ethics goes beyond the direct relationship between its employees and management team.
It is also necessary for a business to consider its social responsibility and relationship with the local community. A business that behaves in an ethical way among the members of the community will find that the community often offers its support in return, which can also be invaluable to the success of the business. This may be done by assisting with community events, donating funds in support of local charities, or simply behaving honestly in dealings with other local businesses, just to name a few examples.
Areas of finance within the business also illustrate the importance of business ethics. This becomes clear when the business is dealing with people such as vendors and shareholders; a business that does not behave with integrity in these dealings will likely soon find that profits will be much less than expected, even if they were initially high. It is also important not to forget the importance of business ethics when dealing with customers, who are clearly some of the most important people to a business.
Customers who do not feel as if they are being treated fairly by a business will often not hesitate to do something about it. Social networks have made sharing negative information about a business much easier, and customers do not hesitate to do so. It does not take much bad press for people to stop purchasing from a business entirely. This principle works in the opposite direction as well, however; customers who feel as if they are dealt with ethically are more likely to tell their friends to visit the business.