In our age where unethical practices are escalating and where non-government and governmental bodies are increasingly 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 (McFarlane, 2013). 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. Stakeholders value ethical businesses and after a business has lost trust due to unethicality, stakeholders will pursue alternatives, and much will be lost to competitors (McFarlane, 2013).
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 acknowledgment 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).
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 which results in increased work performance (McNamara, 2010).
Cite this Business Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social Responsibility. (2020, Aug 02). Retrieved from https://graduateway.com/business-ethics-and-corporate-social-responsibility/