Importance of business ethics .

Good business ethics is important to a business organization because of the following befits that come with it; Goodwill-The business enterprise that is known of having good business ethics normally earns goodwill from its customers and the surrounding community. Goodwill is the intangible asset earned by a company over time for its good ethics, good management or quality production of goods and services. The goodwill gained can translate into tangible financial benefits in the future. Profitability- a Company that has good ethical practices is more likely make profits than a company that is seen as having ethical vices like corruption and nepotism. These are because many people will be comfortable transacting with the company knowing there are low chances of them being defrauded. Going concern-Making high profits is one of the assurances that the company will still be running in the foreseeable future. It is also more assured of survival if the top management is ethical and critical of ethical vices like corruption and discrimination because this is an assurance that the company resources will not be embezzled. Competitive edge- Being a company of good ethical standards naturally attracts customers thus making it to trade better as compared to its competitors in the industry. There is also a saying a in business; quality saves money, which explains this point. As a company produces quality output, the costs associated with retuned defect goods reduces and also there are no re-make costs. This helps the company to increase its financial muscle and elbow out its competitors.

Efficient utilization of business resources- the junior employees always copies what their seniors do. Therefore when the top management is ethical and lack vices like, sex discrimination, nepotism among, the junior managers will follow suit therefore the act misuse of company resources being stopped. Business ethics is a very important education unit that all serious educational institutions should adopt in their syllabuses. It is important because of the following reasons; Some managers only concentrate on making profits to the company and forget how vital good ethics is in the growth and continuity of the organization. These companies are likely to go down because the customers and the society may start avoiding them for lack of good ethics. This shows how much education on business ethics could have helped. Education on good business ethics also assists to shape the thinking of young professionals towards avoiding and advocating against ethical vices. Because they are the managers and leaders of tomorrow this can be seen as a sign of better days to come. Studying business ethics also prepares young professionals on how to handle ethical dilemmas in the future. These will enable them to act assertively and ethically when faced with dilemmas. Study of business ethics makes young professionals to understand why some managers behave the way they do; deontologists, consquatialists etc. The future of business ethics looks bright because currently each organization is striving to ensure good ethics in its structures. Seminars hare being held to preach the importance good ethics and also most academic institutions have incorporated business ethics as a subject in its syllabuses. If the current trend goes on the dream of having a world that lacks ethical vices looks

attainable. In conclusion, business is a very important tool for future business and economic development.