Impact of Business Ethics Essay Example | Topics and Well Written Essays - 2000 words

Impact of Business Ethics - Essay Example Most commonly, ethics affect the performance of business organizations by defining the extent to which they are trustworthy and honest, engage the community in making positive contributions to the community, and retain customer loyalty that contributes to the economic bottom line. In order to be successful in life, ethics plays a vital role. Companies who regularly partake in unethical business practices may be profitable for a season, but once word gets out that they have unscrupulous in many of the dealings, the public will likely abandon them. The issue, then, is for a business to clearly state their ethical code of conduct and then work hard to live up to those standards. The problem, however, is that large corporations often find it difficult to live up to the high expectations that its shareholders and the public have set for them. It is important, therefore, for concerned parties to understand sound business ethics in order to ensure and guard against failure in this area. According to Jennings (2012), corporate ethics provide pillars on which business operations are built upon. There are many different ways that a corporation can use sound ethical principles to contribute to their overall success. A product corporate social responsibility is one such way that this can take place. Corporate social responsibility involves a process of opening up and maintaining a solid manner of doing business that emanates from business ethics. Combined with this concept, it is way the corporation gets involved and participates in community issues. It has been determined that corporate social responsibility is an essential element in working to ensure the success of a business (Jennings, 2012). The reason why corporate social responsibility is a critical part of ethics in any given company rests in the fact it serves to strengthen the bond between the organization and society as a while. It works to gain the