Business ethics are a reflection of the standard of business that either an individual or business uses when conducting transactions. Business ethics are important because they add a line of defense to protect the company, enable company growth, save money and allow people to avoid certain legal implications.
Problems in Networking
Poor business ethics will look bad for a business. Important networks that companies need to build will become harder to establish as no other business person, or business, will want to be associated with a company that adopts a policy of weak business ethics.
It Is Expensive to Be Bad
After the exposure of poor business ethics, it will cost a lot to eradicate the bad publicity from the name of the company. Networking ties will begin to dissolve and excess funds will have to be spent on a stronger advertising campaign to clean up any public relations crisis.
One of the best reasons for studying business ethics is to know your defense. Business ethics are a strong defense. By already establishing what business ethics your company is going to adopt, this is a good defense against bad publicity.
When corporate greed takes over, there are certain legal regulations placed on each individual. If they are violated, then indictments, trials and long prison sentences may be the only options for those businessmen and women acting unethically.
Abandonment of 'Business is Business'
Recent studies have shown that the public no longer accepts the idea that business is amoral and that people now hold businesses to some standard of social responsibility.