0

No products in the cart.

Gallery On Flickr

Error! Please Fullup Flickr User ID and API Key from Theme Options.

Why Ethical Conduct in Business is Important

Why Ethical Conduct in Business is Important

By In Accounting

If you are thinking about establishing your own business, it is important that you always uphold ethical conduct all the time. Setting good ethical standards throughout your entire company will help your business flourish.

Conversely, if you do not follow ethical guidelines, it may hurt your company’s reputation and business is not going to be as successful as you have hoped it to be.

It is important that you establish ethical guidelines for all of your employees to follow. If you are going to get business accounting services in Malaysia, they should also know what you want them to do with regards to ethics at work as well.

Today, I am going to discuss why ethical conduct in business is very important.

Social Norms

We live in a more inclusive environment. People from all walks of life with different races and ethnic backgrounds converge to work in a company and office environment.

You might have come from different countries that follow different cultural backgrounds, which is why conduct ethics will be the thing that will merge people from all walks of life. In other words, it provides a common ground.

For instance, accountants will always be bound to the standards that are set by the GAAP, or otherwise known as the Generally Accepted Accounting Principles.

By following set standards, no matter where the employee came from, there will always be uniformity when it comes to their ethical conduct, especially in a business environment.

Improves Employee Conduct

Human nature dictates that whenever we are treated well, we have this inclination to treat them well too. If company employees are treated ethically by their employers, they will not only act ethically, but they will also have no need to act unethically and engage in practices that might hurt the company and the business, in general.

Employees who are treated ethically are less likely to misrepresent financial information, are less likely to steal company supplies, and will not make large claims regarding company expenses that they can use for travel and things that are unrelated to the company they are working in.

Legal Problems

It is safe to assume that wherever your business operates in, engaging in unethical practices may put your company at risk of closure or legal trouble.

If your company is in this kind situation, you will be forced to take legal action which also means that any profit that your business will make (assuming that you are getting something even with the issues you’re facing) will be spent on good lawyers. In other words, your company will not have any net income as a result.

Even if your company wins the lawsuit, your reputation will forever be tarnished and you may not experience the same results as you did before.

Public Relations

Your employees are considered to be a reflection of the owner, so if they act unethically, it could mean that they are not treated ethically well by their employers.

A company who is regarded to have employees who follow ethical conducts are said to increase public trust.