Why is ethical behavior important in business?

Why is ethical behavior important to business quizlet?

Business ethics are a reflection of the standard of business that either an individual or business uses when conducting transactions. Business ethics are important because they add a line of defense to protect the company, enable company growth, save money and allow people to avoid certain legal implications.

How ethics contribute to customer satisfaction?

Good ethics dictates that a salesperson should help customers find the most suitable product for their needs, not necessarily the one that results in the greatest revenue or highest profit margin for the company. … Precisely meeting customer needs translates into higher customer satisfaction.

How business ethics helps your business?

Having a code of ethics helps your company define and maintain standards of acceptable behavior. A good ethical framework can help guide your company through times of increased stress, such as rapid growth or organizational change, and decreases your firm’s susceptibility to misconduct.

How important is ethics and social responsibility in the business?

Social Responsibility is a crucial part of business ethics. A responsible organisation considers and recognises the impact that its decisions and activities impact on society and the environment; and behaves in a manner that positively contributes to the sustainable development, health and welfare of society.

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How business ethics can help a company or organization to attract more customers?

Enhance a Company’s Reputation

A company’s reputation for ethical behavior can help it create a more positive image in the marketplace, which can bring in new customers through word-of-mouth referrals.

Why is ethics important in customer relations?

Ethics in customer dealings presents your company in a good light and customers will trust your company irrespective of high prices or minor service lapses. Ethics in customer dealings improves the quality of service and fosters positive relationships. … For a business to be successful and even exist, it needs customers.

How can ethical business practices still be profitable?

All the company’s stakeholders benefit from managers’ ethical conduct, which also increases a business’s goodwill and, in turn, supports profitability. Customers and clients tend to trust a business that gives evidence of its commitment to a positive long-term impact.