Why does organizations need to be ethical in modern world?

                          

With today’s competition each & every organization on a run for short term profit. When it is time to slow down & have a look around & see what’s happening around organization it is important to concentrate on who is affecting in this run, who are left behind, what is happening to the surroundings.

Why does they need to do that?

01.  To stay right side of the law.

It's important to adhere to the law when we do business. Organizations do not want to breach any law that stated & face the trouble. It may cost lot of money & Will lose investors trust as well as customers.

02.  Safeguard the company reputation.

Reputation is an asset to the organization. they take long term run to build up the relationship & reputation among the society. If any unethical situations were found in the organization it would cost the relationship & the reputation within shorter period of time.

03.  To make employees loyal to the organization.

People need to feel safe most of the time. Why would they choose a company where they will feel other way around? Employees need to see the future along with the company goals. That’s an important fact when it comes to the Employee loyalty. If you can remember the beginning of HR happened to resist the unethical behavior of industrial revolution. So, that each & every turn that organizations are taking they are responsible to be on their best ethical behavior.

04.  To attract customers.

At the end of the day, Business is all about the satisfaction of the customer. Not like the old days customers know better what they are buying. They know how it affect to them as well as society. If something goes wrong with a good or service, they will not keep silent but voice in social media to protect others from it too. Same thing happened when a customer finds it as a good deed they wanted to promote as the organizations brand ambassadors of course without charging a single pound.

Check out the following video of a professional speakers words about the importance of the ethics in business.

Reference:

Accapr (2014) Why is ethics important to business? Available at: https://blogs.accaglobal.com/2014/11/25/why-is-ethics-important-to-business/.

Ingram, D. (2019) The Importance of Ethics in Human Resources, Chron. Available at: https://smallbusiness.chron.com/importance-ethics-human-resources-12780.html.

Bucaro, F. (2011) The Importance of ethics in business, YouTube. Available at: https://www.youtube.com/watch?v=nJf3JhaiHtQ.