Importance of ethics in business?

Importance of Ethics in Business (Your Name) (Your University) (Course Code) (Professor) July 6, 2013 Importance of Ethics in Business Ethics in general has been a subject of human concern for thousands of years when the Greek philosophers such as Plato and Socrates philosophized about ethics in various facets of life. The term “ethics” refers to the way people live according to moral principles of right and wrong. Business ethics concerns decision making by people in business in accordance with moral principles and standards. Concern for Ethics in business is not a recent phenomenon, it dates back to thousands of years.Anarchasis, the Scythian philosopher who lived in the Sixth Century B.C.once said: “The market is a place set apart where men may deceive one another”(Hicks,1972,p.1.8).In more recent times, news of corporate ethics scandals has made headlines across the globe. The purpose of this paper is to explore the importance of ethics in business. Ethics in business is important for a number of reasons. It translates to good business and higher profits as businesses considered ethical attract more customers than those deemed unethical. Ethics in business enhances trust from customers which in effect leads to enhanced customer loyalty and more customers through referrals, and consequently greater sales and profits. Ethics in business also enhances acceptability from among the clients or consumers, minimizes conflicts and disruptions that might lead to slow business growth.Eventually, it protects the business from the “risks of compliance violations” (Jamshidinavid & Kamari, 2012, p.90). In the wake of increased concern for corporate ethics, in come a number of expectations on the part of business professionals from their clients. First, the clients expect that the business professional be trustworthy and honest. This means that he/she will not make exaggerated claims on products or services mislead or overcharge on prices, falsify in...