Business ethics are the standards that govern them. It is important for every business to practice ethical approaches when they are carrying out their business. One of the benefits of practising ethical approaches when carrying out a business is to increase your sales. Increase in sales is facilitated by many factors such as loyal employees as well as loyal customers.
Ethical factors that increase sales of a business
Building customer loyalty
The ethical business approach makes customers loyal to the company. For example, if you buy a shoe from a company and find out that it has a very good quality, you will be okay buying another shoe from the same company next time you need a shoe. Unfair treatment of customers like overcharging is unethical and you will end up losing many of your customers. One of the long-range strategies for a successful business is having a loyal customer base since you do not need to incur the cost of marketing again.
Attracting new customers
Besides making your customers loyal to you, you also need new customers for your product for you to make more sales and increase your profit. Outsourcing your sales is very important. For instance, there are various companies such as cloudtask sales that would help you with outsourcing the sales of your business. The ethical business approach ensures that you gain new customers every day. If the new customers eventually become your loyal customers, it means that the sales of the product will improve every day. Satisfied customers will refer that product to their family and friends through word of mouth.
Attracting more employees who want to work for your business
This has a significance in reducing the cost of recruitment in the business since many people are willing and ready to work for your company. Secondly, your company is at a position of getting the most talented employees because you have a big pool where you are choosing from. Having employees with various talent in a business is very beneficial since the company is able to increase its productivity.
Attracting investors in your company is crucial because you will be able to keep its price very high. This protects your business from takeover. The company, therefore, has a long life and hence increasing its sales.
Avoid Legal Problems
If any business is practising ethical approaches, they avoid legal problems. Failure to comply with environmental regulations, ignoring the safety hazards of the workers and use of substandard materials in your product are some of the issues that will make your business be at logger ends with the law. The penalties if you are caught with any of them is very high and they would cost your business a lot of money through fees and fines with the various government agencies concerned.
The money you waste in the process would be used otherwise in improving the company sales. In addition, the reputation created for any company that has cases with the law has a negative effect on it. For example, negative publicity, this causes very big damage to the business as compared to legal fees or fines. In order to maintain high ethical standards in your business, you need to take time to train all the members of your organization on conduct that each of them should hold.
Good behaviours of the leaders that ensure ethics in a business
For any company to be productive and increase its sales, all the workers in the company need to work together towards the same goal. You being the leader in your business you need to set a positive tone for the business to be successful.
Leading by example
You need to show your employees a good example. Here are some of the things that you can do to demonstrate ethics in the firm;
- Rewarding workers who uphold ethical behaviour in the workplace
- Promoting employees on bases on their ethical behaviour
- Regular communication to your employees through emails or staff meetings on the importance of ethics
- Hiring with emphasis on the business ethical behaviour of any employee
- Creating a code of ethics of your company
Asking employees to write a personal code
It is very important that you ask your employees to keep a list of things that they think they are unethical and that they would never do such things. You can also tell them to write on how they would respond to such unethical situations in case they ever arise in the workplace.
For instance the employees can keep a document detailing their reactions on the following; offers given to them for unethical incentives, sexual harassment cases, request by fellow cow-working to cover up for them when they want to leave the workplace early and without permission, their response on the opportunity of taking credit given to them for the work that has been done by others and requests offered to them by the coworkers and the management to misuse data or even give false reports.