In every business profit is a driving force of success and growth. Profit is the motive behind every business. Today whenever we open the newspaper we read cases of frauds, scams done in business. If you ask them a question about why did they do such a thing they would answer “It’s the Profits, stupid!” Business and profit do have a close relationship. For several centuries profit has been the primary goal of business. But ethics also play a positive role in Business.
Business have to uphold a moral sense when making decisions and conducting their day-to-day activities. Good business ethics equals good reputation, repeat business and a more stable and safe work environment for employees. The relationship between business and ethics is inseparable. Managing ethics and profits in one organization is like managing extremes together. There was a time when business worked on ethics more than profits. Once I was in a novelty store where I saw a sign that read:
Here at Acme Yachts, we make good boats:
At a profit if we can;
At a loss if we must;
But, always good boats!
In the new business ethics, the sign would read:
Here at Acme Yachts, we make boats at a profit!
Good boats if we can;
Bad boats if we must;
But always at a profit!
This is today condition of Business unfortunately. Corporate argue that without Profits you cannot exist, and without ethics you can still exist. If certain procedures are not followed or, for example, a code of conduct is not adhered to by business, service and sales staff, this leaves the business open to be investigated by regulatory bodies or to be sued by a member of the public. In the end, the business will fail. As leaders show unethical behavior and perhaps even justify it even though they know to be wrong, this eventually becomes a part of organizational culture. People follow by example, and the lack of moral judgment will spread. It’s easy to blame “the system”.
Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run because they show a commitment to an expectation of sound moral behavior. This demonstrates a dedication to society, customers, employees and the business itself.
Explaining in simple language when u are honest to your friend you get the same back but once you break the trust of your friend. The person does not stay with you and slowly he/she mite tell others also about your behavior. The end result friendship is also dissolved and even your reputation.
There is no good reason why a company cannot make ethically sound decisions and still turn a profit. Cheating and/or lying do not bring value to a business, and it also affects employee morale. Employees and reputation are two very valuable assets, and by promoting a morally sound environment for both employees and customers; this can only enhance those assets. Profit and ethics have to be combined together to run a good business by giving them good quality products and services.