Why is ethics important in business?

There are many businesses that have failed and fallen down due to the lack of business ethics. Ethics generally indicates the ability to differentiate between right and wrong and have a clear idea about  right and wrong deeds. Ethics is very important to lead a successful life as well as to run a successful business. The quality of thoughts possessed by a businessman will influence the thinking quality of the company he or she owns. This, in turn, will create an impact on the working culture of the particular organization. If a business has to develop and improve further, it is important that it is built on some ethical principles. This will help the business to remain endure longer. The business involved with only money making without any ethics will only be able to experience temporary success which will remain for a short period. Therefore, for a business to grow, develop, and continue successfully for a long time, it is necessary to follow certain ethics.

The business can stand on long-term profits if it has healthy customer relationships. To maintain a good association with customers, the business has to develop true ethics. The reliability of the business, the services it provides to the customers, the care it takes for the customers, the manner in which it manages its customers, and its intentions with respect to previous customers and their retention constitute ethics in business. The behavior of the businessman towards the customers will have an impact on them. They will develop an impression of the businessman and the business which will make the customers either improve their trust they have with the company or industry or not. The ethics of the business will lead the company to retain the trust its customers.

Favoring one group of customers by taking bribes will cause the company’s injustice to the other group. Making use of the money that belongs to the company for one’s personal purposes is also unethical. The business will run effectively if the businessman remembers that he is not only after profits but is there to address the necessities of society. The business has to function to provide goods or services to the masses. Therefore, to do business which is beneficial for society, ethics is important.