Ethics is a code of conduct that dictates a person's or group's behavior. Many successful business owners understand the importance of ethical practice because without it, failure is probable. The result of a business that employs ethical practices is customer loyalty, and finding a company that you can trust is always in demand.
Practicing ethics, whether it's in business or everyday life, is what allows people to trust you. A business that is true to their policies of customer satisfaction will develop a strong and loyal following. Being fair to employees is another ethical practice. Treating employees with respect and fairness will build a solid workforce for the company, which will result in better customer service and ultimately more business.
You may have heard the phrase "your reputation precedes you." This means that people will hear about you before knowing or dealing with you, and that can be the difference between success and failure. If people hear positive things about you in advance, chances are, they will want to work with you. Practicing ethics will solidify a positive reputation for yourself or your business. In turn, without ethical practices, you can quickly develop a negative reputation.
The goal of any business is to increase profits and you are likely to draw more business when you practice ethics. A loyal customer base combined with a positive reputation to attract more business, will ultimately make you more successful. If your motivation is customer satisfaction, and this is done by earning trust and treating them fairly, chances are, your business will flourish. If your motivation is financial without regard to how people are treated, people will be more likely to walk away.
Edge Over Competitors
In business, practicing ethics can give you an edge over your competitors, especially if any of them have earned a less than positive reputation. Many people will use a company's service based on a positive word-of-mouth referral, and with so many companies receiving online reviews nowadays, your reputation can be known by many people in a short period of time. Receiving positive reviews over your competitors will be good for your business.