Benefits of Business Ethics

Business ethics
It is form of applied/professional ethics that examines ethical principles and morals or ethical problems that
arise in business environment.it applies to all aspect of business conduct and is relevant to conduct of
individual an entire organization.
Benefits

 Increased efficacy in daily operations

 Greater employee commitment
 Increase investor willingness to entrust funds
 Improved customer trust and satisfaction
 Better financial performance
 Low turnover rate/High retention rate
 Enhance a Company's Reputation
Ethics contributes to employee commitment

What is employee commitment

 Employee commitment is an emotional attachment to and involvement with an
organization. Employee commitment is a bond between the employee and the organization
such that the employee wants to continue serving the organization and helping it achieve
its objectives.
components for employees commitment to an organization
 A safe work environment
 Competitive salaries
 The fulfillment of all contractual obligations toward employees
 Goodwill & respect for its employee
Measures of employee commitment

 Affective Commitment
Employee emotional connection with the organization
 Normative Commitment
Employee loyalty and moral with the organization
 Continuance Commitment
Cost employee associated with leaving an organization
Dependency

Independent variable Dependent variable

Business ethics
• A safe work environment
Employee commitment
• Competitive salaries
• Affective Commitment
• The fulfillment of all
• Normative Commitment
contractual obligations
• Continuance Commitment
toward employees
• Goodwill & respect for its
employee
Benefits of employees commitment to organization
 Improved organizational performance
 Employee productivity
 Decreased turnover
 Lower absenteeism
Ethics contributes to investor loyalty

Investor loyalty
loyalty, defined as the continued investment in a mutual fund despite the belief that one is
earning a lower return on investment.
How ethics contributes to investors loyalty
Investors knows that ethical culture in the organization provide platform for…
 Efficiency
 Productivity
 Profits
While lawsuits, negative publicity and fins can
 lower stock price
 diminish customer loyalty
 lower profits
 threaten long term existences
ethical components for investors loyalty
 law abiding
 commitment to excellence
 fulfil commitment
 fairness in dealings
Dependency

Independent variable Dependent variable

Business ethics
• Law abiding
• Commitment to Investors loyalty
excellence
• fairness in dealings
Benefits of investor loyalty to business
 Encourage investor to invest more
 Attract more investors
 Funds available to meet finances
 Funds easily available for starting new project
Ethics contributes to customers satisfaction

What is customer satisfaction

The extent to which company product or services perceived performance match a buyer
expectation
How does ethics contribute to customer satisfaction?
 An ethical business organization acts with integrity, responsibility, honesty, respect and
accountability.
Companies that place ethics at the core of their business strategy have a positive impact on
their customers' affective commitment towards the brand
ethical components contributes to customer satisfaction
 respect for customer
 be honest in sales process
 provide post sales services
 make return/exchange possible
dependency

independent variable dependent variables

Business ethics
 respect for customer
 be honest in sales
customer loyalty
process
 provide post sales
services
benefits of customer loyalty to business
 increase sales volume
 increase number of customers
 loyal customer spreads positive word of mouth
 easy to deal
 less price sensitive