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BSAD489 - Ethics & Values in Business (K) - Assignment 1

This document discusses the importance of ethics in business. It argues that good ethics aids in retaining existing customers and recruiting new ones since customers are more loyal to brands they perceive as ethical. Unethical practices can also reduce employee performance and satisfaction. Finally, with strong customer relationships and productive employees, good ethics is important for business profitability. Maintaining ethical standards benefits businesses in maintaining customer loyalty, employee performance, and overall growth and profits.

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Desmond Williams
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75 views

BSAD489 - Ethics & Values in Business (K) - Assignment 1

This document discusses the importance of ethics in business. It argues that good ethics aids in retaining existing customers and recruiting new ones since customers are more loyal to brands they perceive as ethical. Unethical practices can also reduce employee performance and satisfaction. Finally, with strong customer relationships and productive employees, good ethics is important for business profitability. Maintaining ethical standards benefits businesses in maintaining customer loyalty, employee performance, and overall growth and profits.

Uploaded by

Desmond Williams
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running Header: IMPORTANCE OF ETHICS 1

Importance of Ethics in Business

Northern Caribbean University

BSAD489: Ethics & Values in Business (K)

Patricia Young

May 27, 2021


IMPORTANCE OF ETHICS 2

Importance of Ethics in Business

Now more than ever Good Business Ethics is needed throughout organizations. With the

increase in Remote workers due to the Covid-19 Pandemic, and fines handed down to various

companies due to unethical behaviors, are just a few reasons why having a good ethical

reputation is in the best interest of any organization. We’ll review the importance of ethics in

businesses, first looking at the manner in which it aids in retaining existing customers while also

making it possible to recruit new customers, after which, acknowledging the performance of staff

in good ethical environments, and finally the most important of all, the growth of the business

due to good ethics.

In this modern-day era where social media practically governs the world, it is in the best

interest of Businesses to be in good standing with their Customers. As stated in the online article

‘Ethical brands boost customer loyalty (and satisfaction)’, Customers have a stronger affective

engagement and personal connection to brands that they perceive to be more 'ethical' than others

[ CITATION Igl19 \l 1033 ]. Certainly, as customers at some point in our lives, I’m sure we can all

attest to this statement, sometimes spending only two-seconds in an institution when signs of

unethical behavior are present, such as employees using explicit language while on the job.

Ethical Behavior in an organization can either increase or reduce a company’s Customer-Pool.

Just as Ethical Behavior in an organization can have effects on external sources such as

customers, it can also have effects on internal bodies as well such as employees. The

performance of an individual in an Ethical environment is almost certain to surmount that of an

individual who is working in an Unethical environment. As mentioned by Melissa Horton in her

online article, Employees who are happy with their work environment are more productive than

those who are dissatisfied, as has been demonstrated time and time again. Unethical workplace
IMPORTANCE OF ETHICS 3

practices can produce widespread discontent among employees, leading to a higher sense of

unhappiness with both their job and their bosses[ CITATION Mel20 \l 1033 ].

Lastly, any business with overperforming staff and a high Customer Rating will certainly

prosper. It is only natural that with good customer ratings and employees who feel comfortable

in their working environment, the bottom dollar will also be affected positively. As stated in the

online article ‘Are Business Ethics Important for Profitability?”, When there are less distractions

and morale is strong, productivity rises, resulting in more profits for the organization [ CITATION

Mel20 \l 1033 ].

In conclusion, just as we reviewed the positive impacts Business Ethics can have on an

organization, we still have to bear in mind that unethical business activities would also have the

reverse effect on organizations such as chasing away customers, an increase in underperforming

staff, and in the end a loss in the company’s income. Thus, it is to a business best interest to have

good ethics.
IMPORTANCE OF ETHICS 4

References

Horton, M. (2020, February 28). Are Business Ethics Important For Profitability? Retrieved

from Investopedia: https://www.investopedia.com/ask/answers/040715/how-important-

are-business-ethics-running-profitable-business.asp

Iglesias, O., & Sierra, V. (2019, October 16). Ethical brands boost customer loyalty (and

satisfaction). Retrieved from Do Better: https://dobetter.esade.edu/en/ethical-brands-

customer-loyalty?_wrapper_format=html

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