Importance of Creating Code of Ethics for a Business

Importance of Creating Code of Ethics for a Business

A code of ethics is important for the business to establish and ensure that every employee of the organization is on a mission. It is useful for building the values and the guiding principles of the company because it creates long-lasting positive effects for the company. Running any business in an ethical manner builds a stronger bond between the individual and the management which further leads to creating stability within the company. Although business ethics have always been essential in the past, they have never been important for employers than it is today. In this blog, our subject experts who provide business ethics assignment help have enlisted four crucial points that make it clear why business ethics are important.

Improve Working Conditions

Its the ethical codes which have been set to prevent children from working in factories. Otherwise, it would be the same that children are still working for 16hrs a day and suffering from discrimination, abuse, and unfair labor practices. It’s very important to recognize these harsh practices and to bring out any solution for them, and this change has been brought by ethics. Following business ethics in office has a great deal to do with the changes that take place in our society.

Reduces ethics-related firings

Companies have become much more likely to dismiss their employees over the last several years for not showing proper ethical values. This includes fraud, bribery, insider trading and sexual discrimination. From year 2007-2011, various organizations have fired 3.9% of their employees for ethical issues. This survey has been done in the world’s top 2500 companies. From the year 2012-2016, this figure gained a 36% of increment and rose to 5.3%. So, it’s important for any employee to maintain their ethical values and to reduce the chances of failure.

Control workplace violations

The dramatic increase in ethics-related firings must be the result of atrocious activities and unfair business practices. By examining this data, the first thing we all assume is that employees are losing their ethical and moral values more than ever. But it’s interesting to watch that there has not been an increase in the violation cases which is surely a positive point. Due to fear of job loss, employees around the world are showing their integrity. Reason for this up swinging is surely indicating that the world is changing.

Define Professionalism

Ethical codes have played the most vital role in showing professionalism which everybody expects from everyone in the office. It also acts as a ground rule for every employee and can include the integrity, honesty, respect toward the co-workers. It’s good for business, and thus, if you have to own a good reputation in the community or intend to create a good public image, then you should adhere to some strict professional ethics.

These are some advantages company or employees can have if they follow their own ethical values. Ethical and moral values are honored everywhere. It explains that applying them at the workplace improves trust in relationship between individuals and groups.