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16MBAHR402 – WPE&VS – Unit 1

Workplace Ethics and Value System – 16MBAHR402


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The word ETHICS is derived from the Greek word, ETHICOS means Character or Manner.
Ethics tells us what is right and what is wrong. What is good or bad, what is Just or Un Just,
what is Moral or Immoral? Thus Ethics Means, Code of Conduct. It directs person behaviour
with another person. According to Josephson Institute “Ethics is defined as standards of
conduct that indicate how one should behave based on moral duties”

Importance of Ethics:

 Significant improvement in society: Application of business ethics helps to avoid many


evils from the society. It includes Child labour, Unscrupulous Price fixing, Harassments f
Employees
 Cultivate Strong Team Work and Productivity: Ethical program helps to tune
employee behaviour in accordance with the values preferred by leaders of organization. It
helps to build openness, integrity, sense of oneness among all. Employees feel strong
alignment between their values and those of their organization and they react with strong
motivation and performance.
 Support Employee Growth: Ethic program helps employee to face reality both good and
bad in organization and themselves. They feel full confidence to admit and deal with
whatever it comes in their way.
 Avoid Penal Actions: Ethical program help to detect issue and violations early so that
they can be reported or addressed which helps to avoid Penal actions and Lower Fines.
 Helps in Quality Management, Strategy Planning and Diversity Management:
Ethical program identifies favourite values and ensure organizational behaviour which are
associated with those behaviour.
 Improves Customer Confidence: Business ethics are needed to improve the Customer
Confidence about the quality, quantity, price etc., of the product. Customer haves more
trust and confidence in the businessman, who follow ethical values.
 Survival of the Business: Business ethics are mandatory for the survival of the business.
The businessmen who don’t follow it have short term success but they fail in long term
success. This is because, they can cheat customer only once after that consumer will not
buy any goods from such business man. Thus resulting in failure of business.
 Facilitates Better Decision –Making: Ethics helps in making better decisions.Ethical
decisions made by the organisation will always be in the favour of the shareholders, other
stockholders, public, and their employees. Management to think about all aspects of a
question - economic, social, and ethical.
 Reduces Possibilities of Errors: Ethical norms are helpful in gaining knowledge,
verifying the truth, and avoiding any chances ofmistakes while investigating any given
circumstance or a situation, thus ethics is most effective reducing mistakes and
prohibiting against formulating, manipulating or misrepresenting any kind of dat.
 Improves Cooperation: In every organization cooperation and coordination between
people at various levels and different fields are needed. Also, various values arc

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transferred and shared. Between these peoples, like trust, responsibility, mutual respect
and equality. These values help towards healthy and conducive working conditions
leading to growth and success in the organisation.
 Helps in Dealing with People: The correct thinking sense can be of great help to deal
with people on a regular basis in a proper and positive way. Lack of the proper approach
and wrong sense can cause only negative feelings, thus affecting our communication with
other people also. Ethics that is based on trust, helps in the treating everyone as children
of God and love. Therefore, ethics we which we transfer to others shows the correct way
of life.
 Promotes Moral and Social Values: Ethics is considered to be significant because it
helps in promoting other essential moral andsocial values. Also, values like social
responsibility, human rightsprotection of animals, conformity to the law, and health and
safety aresupported by practicing proper ethics. When a personvalues arewrong, his
capacity to achieve success in his attempts is reduced.For example, a person who makes
up false data in clinical trialcan harm or even kill patients.

Need of Workplace Ethics

 Need of workplace ethics is as follows: Protect Consumer Rights: Today consumers are
considered asking. All businesses should focus on fulfilling the needs of theconsumers.
But in actual, businessmen are busy in earning profitsfor themselves instead of taking
care of consumers' interest. Theyget indulged in unethical practices like adulteration,
misleadingadvertisements, etc. This is why the need of business ethics arises in the
business world. Business ethics helps in protecting consumer rights by controlling
businessman activity and making business more consumer focus.
 Socially Accountable: Organisations are now exploiting employees and customers; they
are making excessive and unethical use of natural resources. Business ethics is the tool to
make an organization socially answerable and accountable for its activity. It means that
the organization is now required to protect consumer, society, employees and natural
resources.
 Introducing Socialism: Business ethics helps in introducing the socialism in a country.
In socialism, business is not theproperty of business owner. Success and growth of any
business is also also depends on the endeavours of many stakeholders like shareholders,
employees, creditors, customers, etc. Hence profits must be distributed among all the
stakeholders.
 Protect Small -Scale Industries: Large-scale organisation share the major portion of the
market. They overshadow the small scale industries and try to terminate them from
business. Business ethics helps small-scale industries to stand in the market byethical
standards and code of conduct to be followed by the small scale industries
 Consumer Strength: Consumers are nowadays becoming more aware of their rights.
Due to increased consumer knowledge and awareness need of business ethics arises
among the businessmen. Organisations are expected to perform activities keeping in mind
the various ethical guidelines.

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 Strengthening Business -Society Relationship: Business can be connected with society


in terms of several aspects like businessconnection with employees, customers, creditors,
shareholders, competitors and government. Business ethics helps in strengthening the
connectionbetween businessand society. It builds strongrelationship by fulfilling the
entire stake holders’ interest.
 Focus Shifts from Sellers to Buyers: In the beginning major focus of any business wasto
earn profit. Every business activitywas performed on the basis of seller's interest. But now
focus of business has shifted from sellers to buyers. Business activities are done not only
to make profit but also to satisfy customers.
 Benefits to Business and Society: Business and society indirectly influence each other.
Business ethics is useful business as well as to the society

It helps businessmen in adopting justice, truthfulness, reliability, and human element in their
actions.It guides businessmen in distinguishing among right and wrong, justand unjust, and
acceptable and non -acceptable actions. Not onlythis, business ethics also helps in protecting
consumer and employee’s interest, promoting healthy competition, and sustainingvalues and
morals of society. Thus, business ethics also helps ingrowth and development of society.

Important Ethical Principles


Irrespective of the working conditions, and the nature of work and workforce, some ethical
principles must be followed to enhance the workplace harmony and in turn, productivity.
 Integrity: Personal integrity of the workers must be honored at any cost. This will imbibe
the sense of pride and obligation amongst them. Value of integrity will make the
employees to be honest and fair in all practices.
 Objectives: Company objectives must be clearly set out and displayed openly so that they
remain in mind and can be referred to anytime. Each employee must be explained about
the role he or she has to play in achieving company objectives.
 Responsibility: Every worker should be clear of his or her responsibility. It should be
written down and well explained to each worker. Responsibility should be so clear that it
should not leave scope for any ambiguity or conflict.
 Fairness: There must be fairness in every activity undertaken inside the company
premises or in its outside dealings. This fairness instills a lot of confidence and belief
among the employees. Fairness also leaves no chance for doubts and complaints to arise.
 Openness: Practices at the workplace shall allow free and frank exchange of opinion and
ideas among the employees at all level. No idea shall be outright rejected or accepted.
Everyone must have a say in judging the opinion and ideas put forth by any other
employee. This instills the sense of belongingness and worth among the employees.
 Diversity: Any company directives or working principles must keep the diversity of the
workplace in mind. Not a single employee from any cultural, racial or educational
background shall feel neglected. Diversity must be a platform to have better
understanding among employees and learn from each other’s diverse backgrounds.
 Behavior: Any workplace that has a group of employees must set clear guidelines for
interpersonal behavior. They must be taught where to draw lines and how to respect an

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individual. Due respect must be paid to the superiors and the interest of the subordinates
must be considered.
 Value: All employees must understand that value of the assets around them. No one shall
be allowed to play with, damage or neglect the assets. Company’s assets must be treated
as their own and employees must be held responsible for any willful damage to it. Taking
care of the property and equipment within employee’s sphere of activity shall be his or
her primary responsibility.
If important ethical principles in the workplace are drawn keeping the above principles or
guidelines in mind, it benefits hugely to the company in terms of increased bonhomie and
productivity.

Development of Personal Ethics

Personal ethics act as the foundation for one's moral Compass; theinternal guide that tells an
individual what is right and wrong. Theydrive actions, and to a certain extent, drive one's
emotions, on a dailybasis. Everyone has a different foundation on which they build their
moral code. Love is the ultimate ethical code: When an individuallove, himself and love
others. Ethical temptations disappear. Most individual have developed negative emotional
patterns that prevents them from entering this state.

Factors Influencing Personal Ethics

Four factors influence the personal ethics of an individual:

1. Influence of Friends/Peers: When children enter school, they are influenced by friends
or peers with whom they interact every day. For example, if a child's friends engage in
shoplifting. Vandalism or drug abuse, the child too may decide to do the same.
Conversely if the child’s peers have higher ethical standards and reject the said
behaviours, he is likely to adopt these standards.
2. Influence of Family: While one's parents cannot dictate their kid's morality, they are
typically the first to voice and demonstrate ethical boundaries for them. Most parents
consider it one of their critical jobs to instil a strong sense of right and wrong in their
children. When parents tell their children that stealing is wrong. They are building a
foundation for their child's personal ethics. How Parents behave has a strong impact as
well. Parent's personal values are the beliefs a person possesses in which they have a
strong feelings regarding whether for or against. On a very basic level, personal values
are the sense of identity. i.e., with different personal values we would essentially be
different people. As a society, we begin acquiring personal values from the beginning of
our lives are under the family umbrella.
3. Influence of Culture: Culture can dictate the ethical norms that people are used to and
come to expect. The culture one lives in much impact his ethical code more than he even
realise, simply because it surrounds him. The customs and traditions of the society one
inhabits become ingrained in his psyche, and the ethics of the group are generally
accepted. If Racism, gender discrimination and other forms of prejudice can become an

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accepted part of a person's ethical standards when surrounded by people who do it and
allow it
4. Influence of Religious Beliefs: Religious beliefs have impact on personal ethics. In
general, religion allows people to accept an established set of moral rules. By following
these spiritual laws, people feel they are behaving ethically. But we still ask the question
— "what makes an act ethical?' Most people vaguely in terms of "doing the right thing”
but few give serious thought to what actually makes an ethically right.
5. Experience can shift your ethics: Events that can happen in your life can also impact
your ethics. Many people claim to be against death penalty. However if loved one is
murdered, they find themselves feeling differently when looking into the eyes of person
responsible.
6. Internal reflections: Personal ethics are developed by our feelings. When we do
something that is against our moral code, we feel bad, guilty or ashamed. When we do
something that is fits our ethical idea of right, we feel good, proud or happy.

Ethical Behaviour for Employees: Every organization wants it employee to behave


ethically.

Behavioural Aspects for Employees:

All companies specify what acceptable behavior is, and what is not, when hiring an
employee. Many even summarize expected conduct in job descriptions or during the
interview process. Behaviour guidelines typically address topics, such as harassment, work
attire and language. Workers who don‘t follow codes of conduct may receive written and
verbal warnings, and ultimately be fired.

Integrity

A key component to workplace ethics and behaviour is integrity, or being honest and doing
the right thing at all times. For example, health care employees who work with mentally or
physically challenged patients must possess a high degree of integrity, as those who manage
and work primarily with money. Workers with integrity also avoid gossip and sneakiness
while on the job.

Accountability

Taking responsibility for the actions is another major factor when it comes to workplace
ethics and behaviour. That means showing up on scheduled workdays, as well as arriving on
time and putting in an honest effort while on the job. Workers who exhibit accountability are
honest when things go wrong, then work toward a resolution while remaining professional all
the while.

Teamwork

A vital aspect of the workplace is working well with others. That includes everyone from
peers to supervisors to customers. While not all employees will always like each other, they
do need to set aside their personal or even work-related differences to reach a larger goal. In

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many instances, those who are not considered ―team players‖ can face demotion or even
termination. On the other hand, those who work well with others often can advance on that
aspect alone, with teamwork sometimes even outweighing performance.

Commitment

Ethical and behavioural guidelines in the workplace often place a high amount of importance
on dedication. Although possessing the necessary skills is essential, a strong work ethic and
positive attitude toward the job can carry a long way. Plus, dedication is often viewed in the
business world as ―contagious, ‖ meaning employees who give a strong effort can often
inspire their co-workers to do the same.

Professionalism

Professionalism is the conduct, aims or qualities that characterize or mark a profession or


professional person; it implies quality of workmanship or service. Every organization knows
that a professional reputation is the difference between success and failure and they seek to
keep their most professional staff. Professionalism is all about success and influence; having
a reputation for excellence and being thought of as someone who exhibits professionalism
under any circumstances can open doors for one either in the workplace or in one personal
ambition

Loyalty towards organization

A Loyal employee rarely needs to be reminded regarding his duties and responsibilities.
Dishonest behaviour can prove to be unprofitable to the organization and his highly unethical
and un professional

Compassion towards co-worker

As a professional, it is understandable that comparing one success and failure with


colleagues. A fair amount of competitiveness among employee is acceptable. However don’t
let personal ambitions rise above the interest of the organization. One can never truly
succeed in life if one steal other credit or follow unethical practices to accomplish the task.
It’s important to have compassion for co-worker and respect their work. The employees
should learn how to work together as team with results in better output for the organization.

Following are ten golden rules to being professional in service to one organization:

1. Always strive for excellence: This is the first rule to achieving greatness in whatever
endeavour one undertake this is the quality that makes one and one work stand-out.
Excellence is a quality of service which is unusually good and so surpasses ordinary
standards; it should be made a habit for it to make a good impression on one bosses and
colleagues.
2. Be trustworthy: In today‘s society trust is an issue and any employee who exhibits
trustworthiness is on a fast track to professionalism. Trustworthiness is about fulfilling an
assigned task and as an extension- not letting down expectations, it is been dependable,

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and reliable when called upon to deliver a service. In order to earn the trust of one bosses
and colleagues, worth and integrity must be proven over time.
3. Be accountable: To be accountable is to stand tall and be counted for what actions one
have undertaken, this is the blameworthiness and responsibility for one actions and its
consequences good or bad.
4. Be courteous and respectful: Courteousness is being friendly, polite and well mannered
with a gracious consideration towards others. It makes social interactions in the
workplace run smoothly, avoid conflicts and earn respect. Respect is a positive feeling of
esteem or deference for a person or organization; it is built over time and can be lost with
one stupid or inconsiderate action. Continued courteous interactions are required to
maintain or increase the original respect gained.
5. Be honest, open and transparent: Honesty is a facet of moral character that connotes
positive and virtuous attributes such as truthfulness, straightforwardness of conduct,
loyalty, fairness, sincerity, openness in communication and generally operating in a way
for others to see what actions are being performed. This is a virtue highly prized by
employers and colleagues, for it builds trust and increases one personal value to all.
6. Be competent and improve continually: competence is the ability of an individual to do
a job properly, it is a combination of knowledge, skills and behaviour used to improve
performance. Competency grows through experience and to the extent one is willing to
learn and adapt. Continuous self development is a pre-requisite in offering professional
service at all times.
7. Always be ethical: Ethical behaviour is acting within certain moral codes in accordance
with the generally accepted code of conduct or rules. It is always safe for an employee to
―play by the rules‖. This is always the best policy and in instances the rule book is
inadequate, acting with a clear moral conscience is the right way to go. This may cause
friction in some organizations but ethical organizations will always stand by the right
moral decisions and actions of their employees.
8. Always be honourable and act with integrity: Honourable action is behaving in a way
that portrays ―nobility of soul, magnanimity, and a scorn of meanness which is derived
from virtuous conduct and personal integrity. This is a concept of wholeness or
completeness‖ of character in line with certain values, believes, and principles with
consistency in action and outcome.
9. Be respectful of confidentiality: Confidentiality is respecting the set of rules or promise
that restricts one from further and unauthorized dissemination of information. Over the
course of one career, information will be passed on to one in confidence – either from the
organization or from colleagues- and it is important to be true to such confidences. One
gain trust and respect of those confiding in one and increase one influence within the
organization.
10. Set good examples: Applying the foregoing rules helps one improve one professionalism
within one organization but it is not complete until one impact knowledge on those
around and below one. One must show and lead by good example. Being a professional is
about living an exemplary live within and without the organization. Professionalism is
highly valued by every organization today and professionals are hardly out of work.

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Apply the ten golden rules of professionalism and enjoy a wonderful, professional and
prosperous career.

Employees Etiquettes

Employee etiquette refers to codes of conduct shouldan individualfollow while at work

Some of the employee etiquettes relevant in context of workplace ethics are as follows:

1) Employees should respect their organisation to expect the same in return. They should not
treat organisation as a mere source of earning money. They must remember that their
organisation is paying themfor their hard work and not for gossiping and loitering around.
2) Employees should reach office on time. If office timing is 9 a.m. and one should reach,
there at 8.50 a.m. It is also essentialto be disciplined at the workplace.
3) Employees should leave all the personal problem out; the moment he steps in the oft ice.
It is unprofessional to mix personal and professional life. Keep them separate.
4) Employees should greet their fellow workers with a smile.
5) Follow the professional dress code. Never wear anything which shows much of the skin.
Avoid wearing jeans, capris, T-shirts, shorts, etc., to work.
6) Employees should never ever enter office under the influence ofalcohol. It is an offence.
7) As a responsible employee an individual does not have any rights to share confidential
information with any of the external parties under any circumstances. Data in any form
must not he leaked to anyonewho hears no relation with the organisation.
8) Employees should keep their in the silent mode to avoid disturbing others sitting around
them. Loud ring tones at theworkplace are a strict no. Avoid long personal calls during
officehours.
9) Employees should keep their workstation free of unwanted documentsand files. Avoid
having lunch at your desk. It creates mess.
10) Employees should learn to own their mistakes. Stick to their statements. Stay away from
blame games and nasty politics at the workplace. Remember conflicts and
misunderstandings lead an employee nowhere. It is always better to discuss issues face-
to-faceand reach to a mutually acceptable solution.
11) While communicating through e -mails, an employee should make sure that his boss is in
the loop. It is foolish to hide things from him. Master the art of writing e -mails. E -mails
must be self-explanatoryand a clear reflection of one's thoughts.
12) Employees should respect their fellow workers. Help them whenever required. Never
give them wrong suggestions.
13) Employees should treat all their fellow workers as one irrespective of their education and
designation in the organisation. Femaleemployees must be treated with respect and
dignity.
14) Employees should never take undue advantage of their position. Do not ask for personal
favours from subordinates. Too much of friendship at the workplace is also bad.
15) Employees should respect each other's privacy. Employees should not open envelopes
which are not theirs. It is bad manners to read e-mail or check messages of colleagues.

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16) Employees should stay away from controversies. Do not spreadrumours around. It is
strictly unprofessional.

Employee Attitude and Ethics

Employers expect personnel to behave in a manner consistent with thecompany's mission and
goals. By establishing standards for businessconduct, company executives set expectations
about acceptablebehaviour. A positive attitude toward maintaining high standards for
workethics usually creates a productive environment in which people takepride in the work,
and customers, suppliers and partners want to conductbusiness.

Following are some of the ethical attitude of employees:

1) Respect and Communication: By demanding that all employeesvalue each other's


opinions, treat customers with dignity and recognisecultural diversity, companies ensure
that employees show respect in theworkplace. If employees have negative attitude toward
other employeesbecause they come from a different culture, productivity tends
todecrease. By promoting activities that help teams work together better with team -
building exercises designed to improvecommunication, solve problems and make
decisions efficiently, companies help their employees improve productivity.
2) Cooperation and Team Work: Effective managers foster cooperation and collaboration
by involving subordinates in decision making by developing skills in conflict
management, these managers help minimize the disruption in productivity. Leading by
example effective managers maintain the high level of integrity and communicate
honestly and openly to their subordinates. Team member who trust their superiors and
feel valued tend to have higher job satisfaction and a positive attitude towards their job.
This typically leads to higher productivity, reduced operational costs and improved
customer satisfaction.
3) Appearance and Character: Employees who demonstrate a positiveattitude toward their
job typically respect company rules and followthe company‘s dress code, obey safety
procedures, adhere to ethicalstandards and exercise self-discipline at all times. Company
Policiesregarding work ethics typically require employees to consider howtheir behaviour
would look if reported in the news. If an employeewould be uncomfortable being judged
poorly by the public for hisactions, he should not take an action that would condemn him,
Immoral and unethical behaviour causes distractions that reduceproductivity and disrupts
the work environment for everyone.
4) Attendance and Organisation: By arriving on time and leaving atthe scheduled time,
effective employees usually produce the work. They were hired to complete. Repeated
unexplained absences ormissed appointments reduce productivity, which tends to affect
therest of the organisation. By displaying a positive attitude toward work, employees get
work done in timely manner and ensure customer satisfaction. Organization that deal
with misconduct in a consistent manner and prevent retaliation against employees who
report bad behaviour ensures high ethical standards that lead to employee trust, respect
and productivity.

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Ethical Violations by Employees

Perhaps one of the most important actions one can take as a businessowner is the
establishment of a written code of ethics. This may help to prevent the occurrence of many
forms of unethical workplacebehaviour. Unethical behaviour ranges from stealing office
supplies todefrauding a business out of large sums of money.

Some of the ethicalviolations evident in organisations by employees are as follows:

1) Employer Intimidation: The 2005 National Business EthicsStudy listed employer


intimidation as the most common form ofethical violation in the workplace. According to
the CanadianCentre for Occupational Health and Safety, intimidation, alsoknown as
bullying, typically involves a pattern of verbal abusedirected at any employee by an
employer. The employers attempt toassert his power by humiliating the employee.
2) Safety Violations: Safety violation may occur regarding work place safety. Not
following the established safety procedures can jeopardise the health, or even the lives of
other employees. Even something as simple as not wearing hard hat or other safety gear
can result in worker injury, which impacts the employer as far as lost productivity and
possible payment of a worker’s compensation claim.
3) Time Theft: Time theft can be a more subtle form of unethicalbehaviour. Common forms
of time theft involve altering time cards or time sheets to cover up late arrivals or early
departures.Time theft alsoincludes viewing non -work -related websites, or spending time
sending e -mails to friends.
4) Stealing: Ethics violations can also involve stealing items, including offices supplies and
computer equipment. Employees who have accessto company finances can steal cash, or
use "creative accounting" as ameans to embezzle money. Workers may also steal
merchandise from a business.
5) Misconduct: Misconduct in workplace can take many forms. Common varieties include
sexual harassment or discriminatory practices such as age, race or gender biases.

Benefits of Ethics in Workplace

1) Employee Commitment

Employee commitment comes from employees who believe their futureis tied to that of the
organisation and their willingness to make personal sacrifices for the organisation.

The more a company is dedicated to taking of its employees, the more likely it is that the
employees will take care of the organisation. Issues that may foster the development ofan
ethical climate for employees include a safe work environment, competitive salaries, and the
fulfilment of all contractual obligationstoward employees. Social programmes that may
improve the ethical climate range fromwork -family programmes and stock ownership
plansto community service. Example: participate indisaster relief efforts after hurricanes and
tornadoes by rebuilding roofs,repairing water damage, planting trees, and clearing roads in
theircommunities. Because employees spend a considerable amount of theirwaking time at

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work, a commitment by the organisation to goodwill andrespect for its employees usually
increases the employees' loyalty to theorganisation and their support of its objectives.

Employees' perception that their firm has an ethical environment leadsto performance -
enhancing outcomes within the organisation. For thesake of both productivity and teamwork,
it is essential that employeesboth within and between departments throughout the
organisation sharea common vision of trust. The influence of higher levels of trust isgreatest
on relationships within departments or work groups, but trust issignificant factor in
relationships between departments as well.

Consequently, programmes that create a work environment that istrustworthy make


individuals more willing to rely and act on thedecisions and actions of their co-workers. In
such a work environment, employees can reasonably expect to be treated with full respect
andconsideration by their co-workers and superiors. Trusting relationshipsbetween upper
management and managers and their subordinatescontribute to greater decision -making
efficiencies.

2) Investor Loyalty

Employee commitment also helps a firm's reputation among otherconstituents. Investors


today are increasingly concerned about the ethics, social responsibility, andreputation of
companies in which they invest, and various sociallyresponsible mutual funds and asset
management firms can help investors purchase stock in ethical companies. Investors are
alsorecognising that an ethical climate provides a foundation forefficiency, productivity, and
profits. On the other hand, investors know too that negative publicity, lawsuits, and fines can
lower stock prices, diminish customer loyalty, and threaten a company's long-termviability.
Many companies have experienced dramatic declines in the value of their stock when
concerned investorsdivested their stocks and bonds.

To be successful relationship with the investor must rest on dependability, trust and
commitment. Investors look at the bottom line for the profit or for the dividends but also they
look for any potential flaws in company performance, conduct and financial reports. Thus
many executives spend considerable time about their firm reputation and financial
performance and trying to attract them to the company financial stock.

3) Customer Satisfaction

It isgenerally accepted that customer satisfaction is one of the mostimportant factors in


successful b strategy. Although a companymust continue to develop, alter, and adapt products
to keep pace withcustomers' changing desires and preferences, it must also seek to develop
Long term relationships with customers. For most businesses, both repeatpurchases and an
enduring relationship of mutual respect and cooperationwith their customers are essential for
success.

By focusing on customersatisfaction, a company continually deepens the customer's


dependence on the company, and as the customer's confidence grows, the firm gains abetter
understanding of how to serve the customer so the relationship mayendure. Successful
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businesses provide an opportunity for customerfeedback, which can engage the customer in
cooperative problem solving. As is often pointed out, a happy customer will come back,
butadisgruntled customer will tell others about his or her dissatisfaction withacompany and
discourage friends from dealing with it.

The public's trust is essential to maintaining a good long-termrelationship between a business


and many consumers avoid the products of the companies that are perceived as treating their
employees as unfairly.

When an organisation has a strong ethical environment, it usually focuseson the core value of
placing customers' interests first. Putting customersfirst does not mean that the interests of
employees, investors, and localcommunities should be ignored, however. An ethical climate
that focuseson customers incorporate the interests of all employees, suppliers, andother
interested parties in decisions and actions. Employees working in anethical environment
support and contribute to the process ofunderstanding customers' demands and concerns.
Ethical conduct towardcustomers builds a strong competitive position that has been shown
toaffect business performance and product innovation positively.

4) Profits

Company cannot nurture and develop an ethical climate unless it has achieved adequate
financial performance in terms of profits. Business with greater resources — regardless of
their staff size have means to practice the Social Responsibility while serving their customers
and valuing their employees and establishing trust with the public.

Many studies have found a positive relationship between corporate social responsibilities and
business performance. Companies convicted of misconduct experiences significantly lower
return on assets and on sales than firms that have notfaced such charges.

Further Readings:

1. https://drive.google.com/open?id=1LFPnFujAfbg5FqyFHt-mimXI0uycCR6G
2. https://drive.google.com/open?id=1zSV1y6hggqtXgCJkACM2OTFSi4ADY8xO
3. https://drive.google.com/open?id=1O1i3rLR71fNUopGJ5D9t-fpzvKgZPJaD

MBA@CMRIT | WORKPLACE ETHICS & VALUE SYSTEMS 12

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