Provide a robust argument for ethical people practice that is supported by academic theory and details both the business and human benefits of people at work feeling included, valued and fairly treated. (2.1)
Ethical practices are often a point of reference when discussing what constitutes good and wrong in the workplace. Ethical principles in business supplement the law by specifying conduct that is not subject to regulatory oversight (Ferreira et al., 2018). Businesses adopt codes of conduct to foster a culture of honesty and trustworthiness among employees and stakeholders. Ethical people practice initiatives are widespread today, although their quality differs widely. It’s more crucial than ever for businesses to do the right things in light of the increased scrutiny of corporate operations. Staff members committed to acting morally are also critical to successful businesses.
Business benefits of ethical people practice
Ethical people practices that uphold moral standards are essential for maximizing profits. For instance, companies that appeared in the list of the most ethical companies globally last year, showed to have exceeded the Large Cap Index by 10.5% in a period of 3 years. Additionally, am ethics program initiative can help save money (Tursunbayeva et al., 2021). Studies have found that 22% of cases investigated resulted in losses of $1 million and over for the affected company. Companies with poor ethics may also see a negative effect on stock price and the loss of business alliances, both of which can have a negative impact on its bottom line (Lasakova et al., 2022). Furthermore, consumer loyalty is connected to a company’s commitment to doing the right thing. Reports show that approximately 50% of consumers stopped their business with organisations that they view as unethical
Human benefits of ethical people practices
Employees from organisations that make the value of ethics in the workplace apparent are highly likely to employ ethical reasoning. A high number of employees exposed to a positive ethical culture are more likely to report feeling equipped to deal with ethical concerns (Tursunbayeva et al., 2021). Organizational cultures that promote ethical behaviour in the workplace tend to produce more honest and trustworthy results. Furthermore, when employees want to remain within an organisation where feel valued and treated fairly.
