To start with, a business that carries its business transactions finds out that this ethical practice can considerably help it to evade unnecessary lose of money in whatsoever way. If a company is ethical, then there is an extremely limited chance that it may be fined some money because of evading issue like paying taxes, extorting money from customers or transacting business deals that are non existent among many other issues. Businesses can also avoid wasting money in courts tying to defend themselves from dirty deals that they may have transacted. Thus, the company saves a lot of money to invest the money elsewhere and get more profits instead of unnecessary loses (Holzer, 86).
Businesses can reduce vulnerability to theft cases and increase their reputation to customers attracting more profit to themselves. Many customers judge business by their ethical values and what the business can offer to them in terms of the trust they hold for the business. This is a company's ethics is extremely vital if it is to succeed in the year 2010.
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Companies that are ethical avoid fines by encouraging their employees to comply and respect international and local regulations that govern the operations they undertake. If this is done, then the business is bound to save a lot in terms of resources, time, customer and employee loyalty and trust and also gain a reputation for its brand name. Fraudulent and illegal actions on the business can only be avoided if the business is ethical. Ethical businesses can create complete corporate citizenship deals that can, in a major way, reduce potential penalties that misconduct may put a business in. This shows the importance of ethics on a business success in the year 2010.
In using an ethical way to transact business deals, a business can avoid its vulnerability. This can be realized when it expands, for instance, internationally and it decentralizes its business deals. This empowers its management together with its employees specifically its work force.
Ethical practices help in training and awareness programs of a business' work force that will later come to work on that same firm. If the business does not enhance ethics on its work force, then it means that the employees will be the first people to bring down that business by stealing, transacting business deals that are illegal and those that involve fraud. So for a business to succeed, then it has to be ethical from its own root being the employer then to the employees then to customers that it deals with. This decreases a business vulnerability to misconduct especially ion the part of employees and cut down chances of harm to the business and, as a result, increase productivity which will in turn increase profits and maintain good brand image and the focus of the management.
A business that is ethical in this current year is capable of improving its brand name and image and reputation as a whole. Those firms that award businesses not only look at the success of a company, but also its ethical base. Businesses that are ethical attract favor to themselves not through any other means other than its good ethics. Corporate reputation means that there must be ethical reputation. If these two exist then the company will automatically increase its improving in terms of its brand image and name.
It has been found that many customers prefer to deal with businesses that are publicly ethical and known for their fair transactions. It is better for a customer to spend more to get a product that is good from an ethical company than to use less money to get a product from a company that is not ethical. This is because hold that products from ethical companies have value for their prices, have good qualities and can stay for longer periods off time .a business ethics attracts capital for investment, employs better and valued employees and gain a benefit of doubt in times when crisis sets in the business or the entire corporate world. Thus if a company improves and maintains a good reputation then it attracts more customers meaning that it also attracts much more profit to itself and as a whole makes and achieves a positive growth ( Boone and Kurtz, 35).
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A company or business that trades with the required ethics is bound to have a good percentage of access to capital. Social corporate responsibility lies in a company's ability to maintain ethics. Governments and investors are inclined most of the time to give access to capital gaining opportunities to firms that are socially responsible and ethical. This is because most investors look at a business' ability to make good use of the capital and funds that are presented to it.
Many businesses that are unethical when they get funds and capital squander and misuse those funds that are given as a capital for investment. However, businesses that are ethical make good use of these funds to not only make themselves better, but also to impress investors in order to attract more chances of getting capital and other beneficial offers. Judging by this fact then, it shows that businesses that do their transactions ethically are more likely to make it a success in 2010 (Speziale, 73).
Financial performance is a vital business asset that a company may own in the current world. Corporate culture and ethics are two most important strategies that if put in use can help a business survive in a competitive world. Sound values and ethical practice act as an important base line for a company`s long term achievement. Businesses that apply ethics in all what they do, are found to perform better in financial management and gains.
These businesses are able to carry out logistic checks on their financial activities and links, carry out effective financial transactions and gains and save on costs that would have been used in the wrong way. Basically they reduce chances of financial theft and enhance financial responsibility ensuring effective financial safeguarding. If a company maintains a public record of how it safeguards its financial services and practices using ethical standards then financial lose is avoided at all costs. This surely shows that a company that applies such standards is at a good position to be successful in the year 2010.
Accompany that is ethical is able to achieve employee commitment. Individuals looking for job opportunities are likely to prefer working in companies that are ethical and show integrity in the way they operate. People's decisions on whether to work in a certain business firm is influenced by their judgment of whether a company is ethical or not.
A company that is not ethical is bond to lose good employees and potential employees because the employees and those who make potential employees fear being shortchanged when it comes to paying their salaries. In the course of work, employees prefer to work with businesses that they have trust in. this is because they are always sure that when funds are needed towards making certain dealings successful, they will be provided.
However, companies which are unethical end up frustrating workers because of the strain that they are put into. Thus ethical businesses attract employees and potential employee`s commitment to work and as a result of this better gains are recorded. Customer loyalty and trust to businesses that are ethical is more recorded as compared to unethical businesses. This ensures that those businesses hat are ethical gain much ore from customers aiding their improvement and growth from the trust they have in customers and also from the profit that they get from the customers (Kolin, 27).
There are many more advantages that businesses may gain for its success from carrying out business deals in an ethical way. Thus ethical behavior is an important factor in the achievement of a firm. Unlike those businesses that practice in an unethical way, those that practice ethically attract favors from customers, investors and from the entire public. From these facts it shows then that ethics is a factor that aids businesses to succeed. These companies tat practice ethically are in a better standing to be successful in the year 2010.