The good news is that steady and consistent ethics will positively affect your bottom line, so choosing the straight and narrow isn’t just a nice idea — it’s an idea that’s in your best interest. Whether you’re an ambitious business student, a Fortune-500 CEO or a seasoned owner of a successful business, the benefits of a strong code of ethics will keep you in business for a long time, and with six million other companies in the United States alone, staying in business means being a good competitor. Companies can and do have a large effect on the world we live in, and the kind of company you run can make for a thriving and stable world or a stunted and uncertain one. So, in the interest of your success and a trustworthy world, here is a short list for some of the practical ways that a hefty sense of morality will keep you in the black.
Employee Morale and Productivity
Employee morale and productivity are directly correlated. When your employees know the boundaries of their work, and they feel positive about the type of work they are doing, they’re more productive. Being a business that operates according to strict ethical standards creates a sense of pride in a work environment. It also sets a tone and context that will deter employees who are more likely to cut corners, shirk duties or actually do something illegal or immoral. In short, you’ll get better work out of better people if you operate your business with a strong moral commitment.
Validate Returns on Investment
It doesn’t matter if you make your money through venture capital, outside investments or the continual reinvestment of your own profits, your ongoing success is dependent on accurate and honest record keeping. Ethical business practices will keep you and your company out of embarrassing and expensive legal messes, and those practices will protect your reputation. A consistent return on investment is more possible when you can focus on the operations of your business instead of negative press, legal problems and reputation management.
The Long View Is a Good View
When money is tight and times are lean, it can be difficult to keep your eyes focused on the years that are to come, but without a good sense of the future, the present is more likely to go up in smoke. Having ethical business practices is one solid way that a business can plan for its own future. Illegal and unethical doings will eventually be uncovered, and they can ruin lives — not just profits. Just ask JP Morgan and Bernie Madoff. Whenever you’re tempted toward anything a little slippery, consider the long view, as well as everyone else who will be affected by your choices.
Avoiding Bad Risk
Capitalism is built to reward risk, and businesses exist to make money. Because generating a profit is the primary goal, it’s easy to let short-term profits drive decisions at the expense of long-term success. After all, when bills and payroll are due, they have to be paid. However, not all risk is alike. When you take risks that are immoral or even questionable, you’ll shake shareholder, employee and customer confidence, which can have disastrous consequences for your business. Any risks that put your long-term viability at stake must be avoided.
Taking the high road can be more easily said than done in the business world, but if you’re serious about success, it’s essential. Keep your path free of ethical obstacles, and you’ll enjoy a more stress-free and profitable existence.