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    Benefits of Business Ethics

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    umair khan
    Business ethics benefits organizations in several ways by increasing employee commitment, investor loyalty, customer satisfaction, and financial performance. Upholding ethics creates a safe work environment and respect for employees, which strongly affects their commitment. It also builds investor loyalty by ensuring law-abiding and fair business practices. Treating customers honestly and providing good service directly improves their satisfaction. Overall, practicing strong ethics leads to greater organizational success.

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    Benefits of Business Ethics

    Uploaded by

    umair khan
    23 views17 pages
    Business ethics benefits organizations in several ways by increasing employee commitment, investor loyalty, customer satisfaction, and financial performance. Upholding ethics creates a safe work environment and respect for employees, which strongly affects their commitment. It also builds investor loyalty by ensuring law-abiding and fair business practices. Treating customers honestly and providing good service directly improves their satisfaction. Overall, practicing strong ethics leads to greater organizational success.

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    Business ethics benefits organizations in several ways by increasing employee commitment, investor loyalty, customer satisfaction, and financial performance. Upholding ethics creates a safe work environment and respect for employees, which strongly affects their commitment. It also builds investor loyalty by ensuring law-abiding and fair business practices. Treating customers honestly and providing good service directly improves their satisfaction. Overall, practicing strong ethics leads to greater organizational success.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views17 pages

    Benefits of Business Ethics

    Uploaded by

    umair khan
    Business ethics benefits organizations in several ways by increasing employee commitment, investor loyalty, customer satisfaction, and financial performance. Upholding ethics creates a safe work environment and respect for employees, which strongly affects their commitment. It also builds investor loyalty by ensuring law-abiding and fair business practices. Treating customers honestly and providing good service directly improves their satisfaction. Overall, practicing strong ethics leads to greater organizational success.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Benefits of Business Ethics

    Business ethics
    It is form of applied/professional ethics that examines ethical principles and morals or ethical problems that
    arise in business environment.it applies to all aspect of business conduct and is relevant to conduct of
    individual an entire organization.
    Benefits

     Increased efficacy in daily operations


     Greater employee commitment
     Increase investor willingness to entrust funds
     Improved customer trust and satisfaction
     Better financial performance
     Low turnover rate/High retention rate
     Enhance a Company's Reputation
    Ethics contributes to employee commitment

    What is employee commitment


     Employee commitment is an emotional attachment to and involvement with an
    organization. Employee commitment is a bond between the employee and the organization
    such that the employee wants to continue serving the organization and helping it achieve
    its objectives.
    components for employees commitment to an organization
     A safe work environment
     Competitive salaries
     The fulfillment of all contractual obligations toward employees
     Goodwill & respect for its employee
    Measures of employee commitment

     Affective Commitment
    Employee emotional connection with the organization
     Normative Commitment
    Employee loyalty and moral with the organization
     Continuance Commitment
    Cost employee associated with leaving an organization
    Dependency

    Independent variable Dependent variable

    Business ethics
    • A safe work environment
    Employee commitment
    • Competitive salaries
    • Affective Commitment
    • The fulfillment of all
    • Normative Commitment
    contractual obligations
    • Continuance Commitment
    toward employees
    • Goodwill & respect for its
    employee
    Benefits of employees commitment to organization
     Improved organizational performance
     Employee productivity
     Decreased turnover
     Lower absenteeism
    Ethics contributes to investor loyalty

    Investor loyalty
    loyalty, defined as the continued investment in a mutual fund despite the belief that one is
    earning a lower return on investment.
    How ethics contributes to investors loyalty
    Investors knows that ethical culture in the organization provide platform for…
     Efficiency
     Productivity
     Profits
    While lawsuits, negative publicity and fins can
     lower stock price
     diminish customer loyalty
     lower profits
     threaten long term existences
    ethical components for investors loyalty
     law abiding
     commitment to excellence
     fulfil commitment
     fairness in dealings
    Dependency

    Independent variable Dependent variable

    Business ethics
    • Law abiding
    • Commitment to Investors loyalty
    excellence
    • fairness in dealings
    Benefits of investor loyalty to business
     Encourage investor to invest more
     Attract more investors
     Funds available to meet finances
     Funds easily available for starting new project
    Ethics contributes to customers satisfaction

    What is customer satisfaction


    The extent to which company product or services perceived performance match a buyer
    expectation
    How does ethics contribute to customer satisfaction?
     An ethical business organization acts with integrity, responsibility, honesty, respect and
    accountability.
    Companies that place ethics at the core of their business strategy have a positive impact on
    their customers' affective commitment towards the brand
    ethical components contributes to customer satisfaction
     respect for customer
     be honest in sales process
     provide post sales services
     make return/exchange possible
    dependency

    independent variable dependent variables

    Business ethics
     respect for customer
     be honest in sales
    customer loyalty
    process
     provide post sales
    services
    benefits of customer loyalty to business
     increase sales volume
     increase number of customers
     loyal customer spreads positive word of mouth
     easy to deal
     less price sensitive

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