Brad Hurlock

Web Design & Marketing Sales for Addison Technologies.

What Is Business Ethics and Why Is It Important?

Brad Hurlock

Web Design & Marketing Sales for Addison Technologies.
7/27/2020

What do you think the most effective marketing tool is for your business?

Your website? Your TV ads? Planning an amazing networking event?

Wrong. The most powerful way to promote your company is through business ethics.

What is business ethics, and why is it important? A recent study from Bentley University found 86% of millennials prioritize companies that are socially responsible and ethical.

Keep reading to learn the basics of business ethics, and the impact ethics have on your brand.

What Is Business Ethics and Why Is It Important?

Business ethics determine what is and isn't appropriate in the workplace. Many businesses have a set of ethics that employees, from executive to entry-level, adhere to.

Industries and individual businesses have ethical guidelines to follow. Business ethics are beneficial for business owners, employees, and consumers. They establish a strong moral foundation that creates a culture of integrity.

Following a set of principles ensures that everyone in the company is respected, honest, and treated fairly. A code of ethics can also impact business growth.

Younger generations are paying attention to how businesses operate and treat their employees. Six in ten consumers under 30 consider a company's ethical values before making a purchase.

How Do Ethics Play a Role in Business?

Why do businesses need to be ethical? The principles provide well-defined guidelines on how to act, resulting in an honest company. Ethics impact customer relations, risk, leadership, and talent.

Build Trust With Consumers

Adhering to a moral code increases a business's reputation. An ethical company is consistent in how it treats its employees and customers, making it more appealing.

An ethical business will find that as its customer base grows, so does investor interest. Honorable businesses often gain local support, which can create partnership opportunities. Media outlets are more inclined to highlight socially responsible companies, which leads to free advertising.

Decrease Risk and Legal Disputes

Companies that practice and enforce strong ethics are less likely to run into problems with the law. Adhering to ethics decreases the risk of employees acting in ways that harm the company. Many legal issues can be prevented by doing what is morally right.

Create a Strong Leadership Team

Leaders must show integrity in how they perform at work and treat others. Top-level employees should exhibit strong character, model ethical conduct at all times, and hold violators accountable for their actions.

When top management acts ethically, their actions trickle down. Organizations with a strong focus on integrity turn problems into teachable moments.

Attract and Retain Top Talent

Companies that adhere to business ethics uphold a notable reputation. Workplaces known to be inclusive and friendly are likely to attract top talent. A recent Glassdoor survey found 77% of adults consider a company's purpose before applying for a job.

Strong business ethics can also increase employee engagement, which helps a business retain its talent. Employees are more likely to feel fulfilled and loyal to a company if the brand exhibits strong moral values and culturally sound behavior.

What Are Your Business Ethics?

What is business ethics, and why is it important?

Business ethics shape a company. They create guidelines that all employees must follow. In doing so, the business builds a favorable reputation and ensures high employee satisfaction.

Now that you understand the importance of ethics, explore more business tactics and strategies. Our blog is dedicated to teaching business owners about branding, marketing, and web design.

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