Impact of Ethical Business Practices
Businesses that prioritise ethics over profits will see the benefits, writes Roy Jakobs, CEO of Philips, Middle East and Turkey, in a recent article for Gulf Business.
According to Jakobs, it is not just individuals who should strive towards high morals and ethics, but businesses too. In the corporate world, this isn’t easy. Businesses need to display good ethics if they are to be accepted by the society, yet sometimes that means persuading their internal society that the organisation is under moral obligation to do what is right.
Being an ethical corporation is a serious business. It entails maintaining their morals in all their activities. But being ethical is not equivalent to losses when it comes to profit. On the contrary, ethical business can bring great bottom line results, Jakobs points out.
A company that operates by the laws of honesty and consideration will be preferred over a competitor who lacks such admirable qualities. If you can earn the trust of customers and make them believe they can rely on your integrity, you won’t need to rely on discounts to encourage them to do business with you.
We live in a world that recognises the importance of sustainability and social responsibility and organisations in the Middle East region are making efforts in that direction, trying to achieve better transparency and accountability on these matters. As more companies take a more ethical approach to business and see the impact on the bottom line, their competitors will follow.