Introduction

Published by the Ethics & Compliance Initiative (ECI), the Global Business Ethics Survey of 2021 surveyed over 14,000 employees in 10 countries about different types of misconduct they observed in the workplace. 49% of the employees surveyed said they had observed misconduct, with 22% saying they had observed behavior they would categorize as abusive. 86% of employees said they reported the misconduct they observed. When questioned if they had experienced retaliation for reporting, a whopping 79% said they had been retaliated against.

Source - https://www.investopedia.com/terms/b/business-ethics.asp

What Is Business Ethics?

Business ethics deals with dilemmas or contentious situations that a corporation may be facing. Business ethics frequently involve a set of norms and procedures that support consumer trust-building. Some corporate principles, like the minimum wage, limitations on insider trading, and environmental rules, are to some degree written into the law. However, management style can have a significant impact on corporate ethics, with consequences felt throughout the entire organization.

The Importance of Business Ethics

To prevent legal and regulatory issues, it's critical for businesses to conduct themselves with integrity. To keep a good reputation among the general public and employees, it is essential to act with strong ethical principles.

A business will frequently experience a dividend in consistent or rising revenues when it has a positive reputation in the market, attracts and keeps a loyal client base, and keeps a competent team. The majority of clients want to work with businesses that treat their clients fairly.

Examples of Good Business Ethics

The various ways in which a company can demonstrate good business ethics:

Employees Should Be Treated Fairly - Paying employees on schedule and in accordance with agreements is important. For example, merit-based decisions rather than favoritism should be used to determine who gets paid more and gets promoted. The overall work environment benefits as a result of the increased trust between employees and the company.

Implement ethical business conduct - Companies should ensure that their products and services are priced fairly and that they keep their commitments to customers. If someone makes a mistake, they should own up to it and take responsibility for it.

Implement Corporate Social Responsibility - More people are becoming aware of the organization's corporate social responsibility (CSR) initiatives. These actions could include conserving energy, acting responsibly toward the environment, or promoting diversity at work. When planning and implementing CSR initiatives, leaders should take into account problems specific to their sector, look for potential solutions, establish quantifiable objectives, and inform the public of their plans.

Integrity in Business

Integrity in business means behaving in a principled way that upholds the values of your organization and adheres to relevant ethical guidelines.

Why is integrity important in business?

When it comes to business activities, having integrity is acting morally because it is the correct thing to do. Integrity is important in business because:

• Stronger reputation- Your reputation as a company will determine how successful you are. Trust that you know what you're doing and are running a sustainable firm is necessary from your clients, vendors, business partners, and investors. Acting with integrity helps to develop your reputation. In the same way, acting dishonestly can lead to your swift downfall.
• Employee satisfaction- Working with a boss who values integrity makes teams more content. If a corporation asks its finest workers to compromise on their values, it risks losing those people. Therefore, a leader must conduct honorably if he wants to see more contented and motivated team members. It is a modest yet incredibly effective tool for achieving overall corporate success.
• Better quality- Employees who are happier are more likely to be productive. There is a higher likelihood that a company with integrity will produce goods and services of higher quality. This is especially true if the business is committed to handling any and all problems in order to enhance the customer experience.
• Clearer focus- It takes a lot of effort to not be on the same level or to treat everyone differently. To stay consistent, you'll need to remember that you're showing different faces to different people. It frees up a lot of time and energy to focus on what's important when your personal and professional lives are seamlessly integrated.

How Can Businesses Show Integrity?

Businesses can demonstrate their integrity by having a leadership that promotes it. To maintain integrity throughout your business, you need to establish the right culture at the top. Leadership teams are essential in ensuring that all aspects of governance, risk, and compliance are embedded in a company's culture and integrity is a key component of this process.

How Integrity in Business Can Deliver Organizational Benefits?

Integrity in Business Can Deliver Organizational Benefits:

• Positive organizational culture
• Ease of attracting and retaining employees
• Improved Customer Relationships
• An increase in business performance
• Possibility of Fulfilling CSR Obligations
• A More Reliable Supply Chain

Conclusion

One of our basic beliefs is to act with respect and integrity. When you treat someone with respect, you show that you appreciate their worth, dignity, and originality. Ethical behavior is important in both professional and personal interactions. Acting consistently according to specific beliefs and moral standards means acting in good faith.

Author

Sonali Thakur

Associate - Sales and Marketing

RiskPro India

(July 2022)