Importance of Business Ethics for Sustainable Growth - Academic Report

Business Ethics 1
Executive Summary
Ethical policies of a business are essential for any organization to take the right path towards
sustainable growth. These ethics are defined by the top management and flow down to the rest of
the organization. It is important for the business to understand the importance of a strong ethical
policy as it can go a long way in creating a positive brand positioning and ensuring long term
sustainable relationships with business stakeholders. This report highlights upon the importance
of business ethics and how they guide businesses towards sustainable growth. A strong ethical
policy can not only help the business in improving its brand image but will also make it easier
for the top management to take the right decision while facing critical crossroads in the business
process.

Business Ethics 2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Literature Review............................................................................................................................3
Discussion and Analysis..................................................................................................................6
Conclusion.......................................................................................................................................8
Recommendation.............................................................................................................................9
References......................................................................................................................................10

Business Ethics 3
Introduction
Business ethics predominantly are a set of values and morals that are defined at the inception of
the business and continue to guide the stakeholders of the organization (Crane & Matten, 2016).
These ethics play a significant role in the success of an organization. They assist in ensuring that
the business stays on the right track and continues to make ethical decisions (Trevino & Nelson,
2016). The purpose behind adopting a strong ethical policy is to ensure that the business does not
get lured by fraudulent practices and continues to maintain honesty and integrity throughout all
business processes.
An ethical business organization will be driven by values and morals. Therefore, such an
organization can be trusted. Brand positioning of a particular organization largely depends on the
ethical values upheld by the firm. If an organization is ethical, customers can trust that they
would receive effective service at a fair price, employees can rely on the organization and plan a
long term career that delivers growth and learning and other stakeholders of the business can also
establish and sustain mutually beneficial relationships with the firm (Weiss, 2014).
This report highlights upon the importance of business ethics and how they shape an
organization as well as various business processes. Certain examples have been noted which
includes those businesses that are setting an example of strongly ethical firms. The report also
recommends strategies for a business to device and maintain a strong ethical policy.
Literature Review
Various scholars have highlighted the importance of business ethics and how they can shape an
organization towards success and productivity. There are several aspects of the business that are
guided by the ethical policy and practices that the business upholds. All the stakeholders that are
associated with the business are directly impacted by the business’s ethical practices (Hoffman,
Frederick & Schwartz, 2014). This is why it is important that all organizations must define their
ethics at the inception and continue to live up to them in everyday business processes.