Ethical Implications on Business Success By + Ethical Implications on Business Success Some organizations have developed successful business empires based on unethical practices, while others have had significant business milestones in relation to their ethical corporate culture. The manner in which an organization aligns itself with ethical matters is likely to have an influence on the success or failure of the business. This essay attempts to capture various evidences for business success in relation to ethical and unethical practices by organizations in the United Kingdom (UK). Customers Ethical organizations tend to treat their customers in a fair manner in terms of pricing and product quality.
Ethical businesses offer the customer the right quality of product and at the right price in order to satisfy the needs of their customers. The satisfied customers develop a good attitude towards the organization and its products (Ethicsforbusinesssuccess. com, 2013). This good perception of the company in terms of the quality and pricing of items encourages customers to build their loyalty to the organization and widens the market of the organization, leading to a strategic success in business.
Unethical organizations sell low quality products at exorbitant prices in order to maximize revenues. In the short-run, these unethical organizations manage to exploit the markets and gain high revenues from deceiving the public about the quality of its products. However, there are dire long-term implications of this deception on the business success (Everyday Life - Global Post, 2012). The customers will reject the organization’s products and even sue the organization for compromising on their safety. Cost of ethics The maintenance of ethics in business comes with its own costs. These costs may include costs of auditing, supervision, training, intelligence systems, hiring the right people, among other related costs.
These costs may form a significant part of the organization’s expenditure and minimize the profits of ethical organizations. However, the strategic implication of spending on ethical behaviors is positive and facilitates the success of the business (Ahmed, Arslan and Rohail, 2014). An unethical business may be unwilling to spend on improving its ethical practices and instead, maximize its current profits. In the long-term, an unethical organization spends more on saving its diminishing corporate image, and defending itself in lawsuits, and might ultimately lose its customers to other organizations (Ethicsforbusinesssuccess. com, 2013).
The overall effect is reduced success in business. Averting competition In this era of increasing competition in business, many organizations devise strategies that will enable them to overcome business rivalries (Everyday Life - Global Post, 2012). Ethical businesses engage in morally acceptable practices in order to beat competition. These ethical organizations believe that the use of fair means of beating competition is essential to maintaining the market share and the good reputation among the customers.
These fair practices may lead to failure in competition especially where there is stiff competition (Ahmed, Arslan and Rohail, 2014). In situations of failure, the organization can restructure its strategy and gain back its market share. Unethical organizations engage in unfair practices in order to win over market segments. The unethical organizations may tarnish the brands of the competitors, and engage in corruption by using authorities to frustrate the businesses of their competitors (Sanjeev and Khanna, 2008). The organizations are likely to gain a significant market share and succeed in business as compared to ethical businesses (Firth, 2012).
However, when these secret adverse tactics become public, the unethical organization is likely to lose its customers’ trust and ultimately lose the customers themselves. State support Organizations that engage in ethical practices are likely to receive state recognition in their activities, which is a plus in improving customer confidence in the organization (Hall, 2008). The state may invest in such ethical organizations and offer the organization privileges based on its contribution to societal welfare (Sanjeev and Khanna, 2008). This support by the state is fundamental to facilitating the success of the business.
Organizations that carry out unethical practices are subject to frequent government interferences and investigations (Firth, 2012). These businesses are likely to fail since the government interruptions affect their business operations and send an adverse message of trust to customers. In conclusion, ethical businesses tend to have better chances of success in comparison to unethical businesses (Hall, 2008). References Hall, M. (2008). ETHICS IN BUSINESS. Firth, L. (2012). Ethics in business. Cambridge: Independence. Sanjeev, R. and Khanna, P. (2008). Ethics and values in business management.
New Delhi: Ane Books India. Ahmed, N., Arslan, M. and Rohail, H. (2014). Importance of-business-ethics. [online] Slideshare. net. Available at: http: //www. slideshare. net/SyedArslan/importance-ofbusinessethics [Accessed 26 Oct. 2014]. Everyday Life - Global Post, (2012). The Benefits & Importance of Ethics in the Workplace. [online] Available at: http: //everydaylife. globalpost. com/benefits-importance-ethics-workplace-7414.html [Accessed 26 Oct. 2014]. Ethicsforbusinesssuccess. com, (2013). Better Business Bureau | Ethics for Business Success. [online] Available at: http: //ethicsforbusinesssuccess. com/index. php? src=news&srctype=detail&category=homepage_top_left&refno=1 [Accessed 26 Oct. 2014].