Role of Business Ethics in a Competitive Market

Being ethical is not easy. Ethics in business require a culture of trust, openness, respect and integrity, that is established and reliable.

But before determining the role of business ethics in a competitive market, let’s first understand

What is business ethics?

Business ethics refers to morally correct and incorrect business conduct standards. The law defines conduct partially, but it does not necessarily define ‘legal’ and ‘ethical’. Business ethics enhances the law by outlining acceptable conduct beyond the control of the government.

Corporations develop corporate ethics to promote employee integrity and to gain confidence from key stakeholders such as investors and consumers.

Role of business ethics

If you can show that business ethics is a key part of your business, then doing business with you offers a distinct advantage over others. People would know that they can rely on you to deliver on your promises and not break them. If you are genuine, these customers will become your unpaid sales force. You both benefit from using your peers in an ethical business.

According to the Global Business Ethics Survey conducted in 2018, employees are more likely to be ethical when their company shows clearly why business ethics is important. Companies that advocate business ethics motivate their employees to perform their roles with integrity.

Another reason why business ethics are important is that profitability can be improved. A well-implemented ethics program can also reduce losses. Increasing stock and severing business partnerships that may also affect profits for companies practising questionable ethics may also occur. Business ethics is also associated with customer loyalty. Consumers have said that they don’t buy any more from companies they feel are unethical. On the other hand, three in ten consumers are expressing their support for social media ethical companies. Corporate ethics fosters confidence that strengthens branding and sales. Having strong business ethics in no way implies that you won’t be relevant in a competitive market. It can rather serve as an advantageous tool. Treat your fundamental values as a living, breathing organism. Check it regularly and be able to add and correct it. When it comes to morality, ensure that your business is a risk-taker by taking the hard and not the easy path. Encourage others to be more ethical at all times, and to act responsibly.