Most business owners and entrepreneurs would totally disagree with any positive relationship between ethical conduct and paybacks. Quite often, management books lay emphasis on best business practices, which theoretically establish an affiliation with output as well as viability. In the real world; throat cut competition, ever-high customers’ demands, employees’ aspirations, and personal voracity rarely allow the entrepreneur to add in best ethical values in policy development and decision making. For instance, when good governance expects the business to fairly publicize the flaws of a product, consumers are often deceived by fabricated depictions.
Tough job it is to honestly make the workforce aware of the upcoming slump in the business; however annual appraisals are the periods when promotions and salary hikes are constricted alleging that the company could not fetch adequate profits in the last FY. The flowing money in form of hefty pay packages in the IT business extracts every bit of hard work from the employees. Not every letter of employment reveals real job responsibilities, which lessens the passion of the employee while at work. Business ethics seem to be confined to just management lectures, in real, however, only a few employers accord value to the hopes of the workforce.
Contractual obligations are taken care of by the law of the land. Any contract with a supplier or a trade customer demands ethical business conduct so as to ensure that none of the parties makes unjustifiable profits. Indeed, the bulky number of suits in corporate courts and tribunals substantiate the tricky covenants added in the contracts, which leave one of the parties at unanticipated loss. With abundant suppliers and customers, businesses rarely pay heed to the damaged relations, and disremember the lesson of good corporate governance. Eventually, the loss is shared by the whole corporate world since everyone works within the same group.
The accountability of businesses towards the society at large, or for that matter towards the government, which takes care of the social betterment, is unquestionable and crucial. Corporate taxes and corporate social responsibility (CSR) norms necessitate unavoidable contribution to the advancement of the society. Be it a large corporate house or a small proprietorship concern, every business craves to escape liabilities to the maximum possible extent. Tax evasions with the help of dummy employees, unscrupulous accounting devices, corruption, and dodgy selling techniques have superseded all the ethical business values prescribed by corporate theorists.
It is tough to comprehend why businesses overlook a basic fact that they all earn while being a part of the society. The stakeholders, be it the consumers, suppliers, creditors, employees, or the government, are the vital pillars in the triumph of any business concern, hence ethical values and good corporate governance deserve devoted attention. Rather than escaping the fusion of business practices and business ethics, the top to bottom hierarchy of workforce needs to be acquainted with explicit corporate guidelines, and any deviation shall be recorded and curbed. The boost in the contentment of all stakeholders is sure to advance profitability of businesses.