GROUP : 8

BUSINESS ETHICS AND

ORGANIZATIONAL PERFORMANCE

HAMZA HUSSAIN (1004)

ZEESHAN YOUNAS (1005)
SHAHBAZ ALI(1020)
ZAID HASSAN (1052)
ALISHA RASHEED (1030)
 BUSINESS ETHICS AND
ORGANIZATIONAL PERFORMANCE

01 02 03 04
ETHICS AND ETHICS AND CUSTOMER COMMITTED
PERFORMANCE COMMITMENT TO SATISFACTION EMPLOYEES AND
CORRELATION QUALITY AND ETHICSS ETHICS
 ETHICS AND PERFORMANCE
CORRELATION

01 The ethical commitments of individual employees has an effect

on team and department performance in addition to individual
performance. Being an ethical employee makes you a better
team player, always making positive contributions in group
settings and never hindering group progress
 Relationship of Business Ethics to
Performance customers, employees, and
investors are major concerns for firms that
want to develop loyalty and competitive
advantage
– goal is to increase customer
dependence on the company & to provide
products in an environment of mutual
respect & perceived fairness
– create satisfying relationships with
employees – support relationships with
investors based on trust, dependability, &
commitment
Trust as a
Component of
Business Ethics

Trust is defined as a virtue that creates a predisposition to place

confidence in the behavior of others while taking the risk that the

expected behavior will be performed employees must share a

common vision of trust trust is the ‘glue’ that holds organizations

together trust is essential for maintaining long term relationships

between business & consumers

 ETHICS AND COMMITMENT TO
QUALITY

02
Ethics and quality are intimately related to each other,
as quality arises from three main factors, moral
attitudes as a result of consciousness or awareness-
raising, culture as a result of education and the use of
know-how and the application of standards as results
of learning and training
 ETHICS AND COMMITMENT TO
QUALITY
Ethics Contributes to Organizational
Quality an organizational commitment
to quality causes employees to be
more willing to support quality
initiatives & discuss ethical issues
employee’s commitment to quality
has a positive effect on a firm’s
competitive position, an ethical work
climate should have a positive effect
on the financial bottom line
 CUSTOMER SATISFACTION
AND ETHICS

1. Customer satisfaction is one of the most important factors in successful

business strategy. 

03 2. By focusing on customer satisfaction, a company continually deepens the

customer’s dependence on the company, and as the customer’s confidence
grows, the firm gains a better understanding of how to serve the customer.
3. Successful businesses provide an opportunity for customer feedback, which
can engage the customer in cooperative problem solving.
1. Research indicates that a majority of
consumers prefer companies that give back to
society in a socially responsible manner.
2.  A strong organizational ethical environment
usually focuses on the core value of placing
customers’ interests first. 
3. An ethical climate that focuses on customers
incorporates the interests of all employees,
suppliers, and other interested parties in
decisions and actions
4. Ethical conduct toward customers builds a
strong competitive position that has been
shown to affect both business performance
and product innovation positively.
 Research indicates that a majority of
consumers prefer companies that give back to
society in a socially responsible manner. 
 A strong organizational ethical environment
usually focuses on the core value of placing
customers’ interests first. 
 An ethical climate that focuses on customers
incorporates the interests of all employees,
suppliers, and other interested parties in
decisions and actions.
 Ethical conduct toward customers builds a
strong competitive position that has been
shown to affect both business performance
and product innovation positively.
 COMMITTED EMPLOYEES AND
ETHICS

Ethics Contributes to Employee Commitment employee commitment comes from

04 employee’s who believe their future is tied to that of the organization & their
willingness to make personal sacrifices for the organization
– the more dedication on the part of the company, the greater the employee
dedication
– concerns include a safe work environment, competitive salaries & benefit
packages, & fulfillment of contractual obligations
Issues that may foster the development of
an ethical climate for employees include 
 The absence of abusive behavior,
 A safe work environment, 
 Competitive salaries, and 
 The fulfillment of all contractual
obligations toward employees,
 As well as social programs such as stock
ownership plans and community service.
 Issues that foster ethical climate for
employees
 Ethics Contributes to Employee Commitment
  Employees’ perception of their firm as having an ethical
environment leads to performance- enhancing outcomes within
the organization.
 An organization with a strong, ethical corporate culture helps to
increase group creativity, decrease turnover, and increase job
satisfaction. 
 Trusting relationships within an organization between both
managers and their subordinates and upper management
contribute to greater decision-making efficiencies.
  When companies are viewed as highly ethical by their
employees, they were six times more likely to keep their
workers.
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