Ethics in business is key to profitability and success

dubai - A level of sensitivity towards ethical standards is very important in trade and business

What is the worldwide industry problem when it comes to upholding strong relations?", one may ask. Well, more than anything, it's the "us against them" approach of employees towards the management that gives rise to most issues. The stubborn and inflexible "I'm the boss, I own these people" mentality of the management only adds to the conflict. Both these factors make a lethal combination that leaves little or no space for business ethics to flourish and nourish a conducive and productive work environment. These issues need to be nipped in the bud for ethical practices to blossom.

This is exactly why a level of sensitivity towards ethical standards is very important in trade and business. Conforming to high ethical standards allows professionals and corporations to co-work in a fair and moral manner suitable for all. It is a known fact that long-term profitability of an enterprise is directly proportional to its value system.

Business owners must do whatever it takes to cultivate a conducive environment. It is important to understand that it is almost entirely upon business owners and the top management to develop a trust factor. There is a lot that can be done, here are a few suggestions:

. First, it is essential for business owners to create a value chart and be consistent with their employees and customers in terms of the values and morals. Inconsistency in values leads to doubt and distrust among all stakeholders.

. Second, business owners must learn to be more involved with their people. An approachable boss eliminates unreasonable fear and generates trust and a sense of belonging amongst employees.

. Lastly, business owners need to be more sensitive and receptive towards their employees and clients. Welcoming feedback is the best way to understand and alter your offerings. This also creates a kind of unmatched interest and loyalty.

It is essential to understand the importance of being ethical
The importance of business ethics in running a profitable business should not be overlooked as high ethical standards play a crucial role in the success of an enterprise. Be it ethical accounting practices or treatment of employees, the management needs to lead by example in order to ensure that each level of employees consistently follows ethical practices. This creates a positive work environment for everybody and it is no secret that a happy employee is a productive employee.

Both internal and external trade relations matter
Ethical standards need to be maintained both internally and externally to cultivate sustainable relations that lead to increased trust and confidence, amongst all stakeholders. When stakeholders trust in an enterprise and its ways of working, it obviously leads to strong and sustained relationship building between them and the enterprise.  

It is, therefore, imperative for enterprises to maintain principles in a holistic manner and conform to high ethical standards in order to build sustainable industrial relations and increase productivity. Adherence (or not) to high ethical standards is the difference between a successful and an unsuccessful enterprise these days.

The writer is managing director at Al Muqarram Auto Spare Parts Trading. Views expressed are his own and do not reflect the newspaper's policy.