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Why Businesses Should Embrace Ethics

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In our age where unethical practices are escalating and where non-government and governmental bodies are scrutinizing business organizations because of the escalated unethical practices, businesses must enhance the understanding of their ethical duties for their long-standing growth, value and reputation. Using ethics as a guide to operate an organization’s functions and operations with moral values and principles to guide their behavior, decisions and actions and is known as business ethics (McFarlane, 2013). Comment by Russel Sauer: 317 words

Corporate social responsibility is built on ethics and is not only advantageous for business success but similarly toward the public. Businesses participating in Corporate Social Responsibility builds an illustrious public image (Jacobs, 2015). There is a directly proportional relationship between social responsibility, thriving financial performance and competitive advantage. An illustrious public image gains the acknowledgement of customers which results in them making referrals, purchasing with more confidence and enhanced loyalty. Moreover, it draws abled employees hence enhancing business performance and employee productivity (McNamara, 2010). From a stakeholder’s perspective, it is necessary for businesses to improve their ethical reputation and presence to remain strong. Additionally, it draws potential investors and stockholders that intends to trust businesses with their well-being, happiness, health, money, needs and wants and their safety. Meaning investors of a business will expect a return on investment because of the resources and trust they placed on a business (McFarlane, 2013).

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Awareness of ethics in the work environment assists employees confront reality, both bad and good in themselves as well as the organization. Making employees feel like they can deal with whatever comes their way with confidence. Furthermore, a business having ethical values namely, community and integrity builds strong teamwork. The workflow in the work hierarchy when orders and tasks are passed down is more efficient ensuring no delay, because of strong teamwork resulting in cohesiveness thus because of the positive work environment, employees are strongly motivated to perform ensuing increased work performance (McNamara, 2010).

A variety of problems is caused if a business has a lack of ethics. An ethical business is valued by stakeholders and after a business has lost trust due to unethicality, stakeholders will pursue alternatives, and much will be lost to competitors (McFarlane, 2013). A business will lose credibility and reputation when their lack of ethics is made public knowledge resulting in a loss of customers and stakeholders in general. These stakeholders and customers will abandon that business and look to other businesses to satisfy their wants and needs. A lot of capital and resources will be consumed to restore the organizations previous reputation and image and to gain back the customers and stakeholders’ confidence and trust (Zeiger, 2019). The capital and resources could have been used to invest in a new business opportunity which had a possibility of generating a great deal of capital. Comment by Russel Sauer: 266 words

Employee performance is negatively affected when a business organization has a lack of ethics. It causes some employees to be so influenced to get ahead in the company and to make money that they skip and disregard normal and ethical company procedures, policies and protocols. This ensues carelessness, errors, corruption, authority abuse and doing certain tasks over again. Thus, employees who are ethically rule abiding may feel that they are not being rewarded for being ethical and will feel less motivated which results in a decrease of work productivity and tension between ethical employees and unethical employees affecting the company’s internal collaboration, functions, operations and sense of community in the short-term negatively but the long-term is affected the greatest (Zeiger, 2019).


  1. McFarlane, D.A., (2013). The importance of business ethics to small ventures. Entrepreneurship and Innovation Management Journal, 1(1), pp.50-59.
  2. Turyakira, P.K., (2018). Ethical practices of small and medium-sized enterprises in developing countries: Literature analysis. South African Journal of Economic and Management Sciences, 21(1).
  3. McNamara, C., (2010). 10 Benefits of Managing Ethics in the Workplace - Business Ethics, Culture and Performance. [online] Business Ethics, Culture and Performance. Available at: [Accessed 3 Apr. 2019].
  4. Jacobs, K., (2015). Ethical Inquiry: November 2013 | Brandeis University. [online] Available at: [Accessed 3 Apr. 2019].
  5. Zeiger, S., (2019). Effects of a Lack of Ethics on a Business Environment. [online] Available at: [Accessed 5 Apr. 2019
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