Impact of ethics on business policies and strategies
Answers
Practicing high ethical standards is a good business strategy as it results in customer loyalty, low employee turnover and a positive image in the community and within the industry.
The first impact of ethics starts at the very early stages of a company’s development, when the owner creates a mission statement for his business plan. This describes the type of company he wants to build.
Secondly, Business ethics also provide a code of conduct to give specific direction about how his employees should perform and act in situations they come across.
The ethical code of conduct acts as set of policies that the business owner expects employees in the company to follow.
Thirdly, Ethical standards also help in Customer Relationship Management in the form of honesty to the customer.
Also, avoiding false promises to customers such as claiming something the business can’t deliver or exaggerating a product’s benefits.
And last but not the least, a company’s business ethics also contribute towards strategies to ensure employee retention and create a more productive organization.
This includes managers treating employees with respect and recognition.