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The application of moral principles in business is relevant since the reputation of organizations is highly dependent on the right and wrong they do. The public image that the establishments get is acquired through the quality of products and services they provide. Thus, to keep ethics in business activities without reduction in productivity and profitability is one of the major issues in today’s business world.
Meaning
The set of moral values and believes which an establishment keeps can be termed as Business Ethics. The ethical business establishments try to focus on the quality of their service more than profit. It aids for the benefits in long term though there will be a profit hamper.
Effects
Maintenance of business ethics can affect the market forces. Since the opinion of common people matters a lot for the growth of every business enterprise, it seems indispensible to make ethical actions and decisions. The trust and loyalty of the customer’s increases and it results in the enhancement of the image of the brand. The productivity and sale also get increased. The other reflections of ethical practices are attracting prospective investors, legacy, retention of the employees and many more. The reputation of the organization can also be increased and kept safe by keeping ethics.
One of the vital factors which ethical business practices can render is the adhering of the employees to the company which can eventually reduce the costs of recruitment. People always compare the products when they reach the market. Comparison with the competitors may damage the unethical establishments easily. Thus, it is recommended to conduct various public relation programs which speak about the moral principles followed by the company. This increases the credibility of the company in such a way that there will not be an alternative for the organization.

Post Author: Benito Wyatt

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