Most managers encounter dilemmas when struggling to balance between ethics and profits. The temptation to maximise earnings by compromising on ethics is usually high during the initial stages of the business since entrepreneurs are willing to do anything to have the company running and moving towards achieving the set objectives. Tolerating unethical practices can lead to increased gains in the short term but eventually become harmful and unprofitable in the long-term.
Ethics regarding business is the analysis of issues that arise in the course of business. It involves understanding the difference between morally right activities and morally wrong activities. From the perspective of business, ethics define the process of attaining economic goals by incorporating social activities. Success must be backed up with positive moral behavior on the side of the company. The enterprise must ensure equity and fairness when dealing with all its stakeholders. Ethics is a vital concept in every institution. Therefore, no room should be allowed for compromise.
Any business should consider three principal factors to uphold ethical conduct. It should adhere to all the criminal laws relating to its operation in its country of operation. It should protect itself from a civil lawsuit by ensuring that all the activities it undertakes are following the provisions. The business should also maintain a right image in all its operations so that it is judged positively by the society in which it operates.
Ethical balance is also dependent on how individuals in the organization behave. The employees must be of stable emotions exhibit all the other positive traits in their personality to enable them to make moral decisions for the business. The organization should strictly adhere to all the positive core values in their services to earn respect from their customers and also other companies with which they deal. Some of the positive values include trustworthiness, dependability and integrity. It should also be dedicated, loving and considerate in its operations not forgetting persistence and faithfulness.
Current institutions must understand that ethics is vital to their success in the long run. Companies’ management should be determined to achieve long-term success and avoid shortcuts regarding adherence to ethical conduct just to gain short-term profits. A company’s most valuable asset is gain trust from customers, employees and the general public which can only be attained with full compliance with ethics and morality in business.