When it comes to moral judgments, some rational justifications are required, which is how ethics is explained. Just like in everyone's everyday life, ethics is also an important factor for organizations and companies. Organizational ethics are the policies that are used in the workplace, and the culture and procedure of doing things when the employees are in the office.
These ethics help organizations keep a standard behavior in the workplace and handle difficult situations. Now with the emergence of social media, how and what culture a company practice is easily visible to billions of people. So it has become even more important to have standard and ethical practices in organizations.
Let's move over to how ethics can shape organizational culture and why is it important:
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Organizational ethics build healthy corporate culture:
When an organization devotes itself to developing rules and regulations, backed up by morale it encourages an ethical behavior practice that builds a healthy office culture further. It also improves the bond between the team members as the team member morale helps the employees feel protected by the organization. These ethical policies include rules that are anti-discriminatory so that the employees feel safe and respected when they are at the workplace. It also includes equality that presents equal opportunities for growth for all genders and eliminates partiality. It is all about making the employees feel good about coming to the office so they return the same vibe by increasing their productivity and loyalty toward the organization.
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Ethics in the workplace confidence:
Business is all about keeping consumers happy. As mentioned earlier, the emergence of social media and the internet makes it very hard to keep anything hidden. The same thing goes for customer satisfaction. When a company has no morals or ethics, it will continue to give poor performance, resulting in employee dissatisfaction along with consumer dissatisfaction. Due to the review culture and open conversations on the internet, when a consumer is not happy, the entire world knows the reason, the company's fault, and additional things. When a company deals badly with keeping the employees happy it also negatively impacts its image hence, reducing the confidence of the consumers in the business.
On top of that, if there are no policies and ethical practices on how to deal with the customers, the employees will not behave in the appropriate way which is a very easy process of earning customer dissatisfaction. Treating customers with respect should be in the ethical practices of an organization that will eventually promote business growth.
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Ethical organizations face fewer lawsuits:
Discrimination in the workplace is the biggest reason why companies all over the world face the most lawsuits. Any kind of not acceptable behavior, no matter toward an employee or a customer, can result in lawsuits for millions of dollars. This is why every organization, small or big should have core policies that deal with harassment and discrimination. When it's unethical in an organization to behave inappropriately, there will be less of it, therefore minimizing the chances of getting any lawsuits or controversies.
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Ethical practices reduce financial liabilities:
When organizations do not develop policies based on ethical practices they are always at risk of financial liabilities. For example, a company can lose customers if it is not producing in an environmentally healthy way or using sweatshops and child labor. It is always about a moral ground that supports organizational growth and promotes ethical decision-making.
Just like society needs ethics to function regularly, organizations also need them to keep their customers and employees satisfied.
