Teaching your employees about business ethics of the company is very important.

I consider very rude when I walk up to a reception to inquire about something and when you greet the receptionist, they reply you with a grunt and not even as much as looking at your face, while at the same time are busy discussing about a wedding they attended over the weekend.

While many companies overlook this fact of training their employees on business ethics, it is very important that the company makes it very clear to the employee about what is expected of them.

In training the employees about the work ethics the companies should;

1. Establish a code of ethics for the company based not only on the company’s values but also the law. These guidelines focus on what a business needs to employ in its policies to be proactive in detecting criminal activities.

2. Create an outline of the ethics training, including what you wish to accomplish and how you intend to do so. Successful training workshops are organized and applicable.

That means that not only do you need to have an agenda, but you need to have real-world examples available to illustrate your points. Giving the employees an opportunity to role play problem-solving solutions to ethical dilemmas is a particularly effective way to get the idea across.

3. Include the entire staff, from new employees to CEOs, in employee ethics training exercises, as business ethics applies to the whole company. Set aside a specific time for a detailed (and mandatory) training session in which you can discuss the code of ethics, the reasons for it and how it ties into compliance laws. It’s important that employees understand the legal implications of not complying with the policy.

4. Demonstrate a problem-solving model, allowing for employees to decide whether situations they encounter are ethical by asking themselves key questions. If an employee can honestly say that an action was legal, within the company’s code of ethics and wouldn’t create a national scandal, then he can feel comfortable with following through on it.

5. Provide a visible and positive example of your company’s ethical standards. Stick to the commitments you make, take accountability for your actions and be consistent in how you interpret the workplace rules. Employees are more likely to respond positively to a policy if they see that their supervisors are adhering to the same standard of conduct.
In providing the above points clear to the employees during the trainings, the company will benefit by;

Profit Maximization
The importance of ethics in business can be understood by the fact that ethical businesses tend to make much more profits than the others. The reason for this is that customers of businesses which follow ethics are loyal and satisfied with the services and product offerings of such businesses.

Let us take an example. Suppose, there is an organization named XYZ which manufactures cosmetics. XYZ greatly believes in the importance of business ethics. When XYZ advertises its cosmetics in the market, being an ethical organization, it will be very truthful and honest in its communication with the probable customers.

It will tell correctly about the kind of ingredients it has used while manufacturing the cosmetics. It will not lie or exaggerate about the benefits or uses of its products either.

So the customers, who buy its cosmetics, know precisely what they are buying and how useful that product is going to be for them. This way, the product will meet their expectations and thus, satisfy the customers. When customers are satisfied, they will become loyal to the company and come back again for re-purchasing.

This will surely increase the profits of the organization. Thus, the importance of business ethics is that it creates loyalty in customers and maximizes the profits.
Efficient Utilization of Business Resources

In an organization, people working at the junior levels often emulate the ones working at the top. The same applies with ethics too. If the management or seniors of an organization follow ethical business practices, i.e, they do not bribe to get their way or they do not cheat the customers, investors, suppliers, etc., the employees will follow suit. The employees too will refrain from using the office property or resources for personal benefits..

Creates Goodwill in the Market
An organization, which is well known for its ethical practices, creates a goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the businesses which they can trust.

Shareholders too, remain satisfied with the practices of an ethical businesses. Thus, the importance of business ethics in creating goodwill and building long term relationships, can not be denied. Also, an ethical business puts greater value on its employees and thus, employees remain loyal to such an organization too.

Ends