Assignment on Business Ethics and Public Image
Companies would be nowhere without shareholders and investors, thus working with business ethics in mind is critical when dealing with these key stakeholders. When evidence about the unethical activity is found, it is normal for publicly listed firms’ profits to plummet quickly. When a corporation loses the public’s trust, its investors’ trust, and its shareholders’ trust, it can be difficult to recoup profitability; it may take years to reestablish profitability.
Customers are the lifeblood of all businesses, and consumers want to do business with ethical businesses. Consumer buying patterns are changing to favor environmentally aware products, according to a report conducted by Toluna, a consumer intelligence service, in 2019.
The study, which polled 1,000 U.S. customers, found that over a quarter (37%) of consumers are looking for ecologically friendly items and are ready to spend up to 5% extra for them. 2 Given the abundance of alternative items accessible in the global market, this is particularly simple.
A company’s implementation of solid ethical policy benefits all stakeholders, from investors to employees to customers. Companies that establish a foundation for business ethics in all aspects of operations are more likely to develop and remain profitable than companies that operate unethically.