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Nine Good Reasons to Run a Business in an Ethical Manner

9. Litigation/Indictment Avoidance
Without strong ethical values companies easily drift to the legal edges— dangerous territory where bending and breaking the law leads to lawsuits and indictments.

8. Regulatory Freedom
When citizens and governments are aggravated by irresponsible, unethical business behavior, greater regulation and bureaucratic red tape is the result.

7. Public Acceptance
Companies that tolerate unethical practices in today’s transparent era, will almost certainly be exposed, then boycotted and punished in the marketplace.

6. Investor Confidence
Today’s investors will avoid a company that is not responsible and ethical. Recent market declines have partly resulted from concerns about unethical accounting practices.

5. Supplier/Partner Trust
In an era of virtual corporations, partnerships, and extended enterprise, no company is self-sufficient. Successful partnerships are built on trust and trustworthiness.

4. Customer Loyalty
Quality, cost, availability, and other factors are not enough to maintain customer loyalty. Customers are also looking at the reputation of the company.

3. Employee Performance
People produce best in an open, creative, ethical environment. Companies that have a poor reputation have difficulty attracting and retaining top talent.

2. Personal Pride
Company leaders and employees can take genuine pride in their accomplishments knowing they didn’t bend rules, cut corners, or hurt people to accomplish their goals.

1. It’s Right
Acting ethically is more than a tool for achieving results. Unless leaders are committed to do the right thing regardless of consequences, ethics may be seen as manipulative.

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