Ethical Communication: An Essential Part of a Successful Business

This report emphasizes the critical role of ethical communication in contemporary business, highlighting its impact on reputation, employee retention, and legal compliance. It details how ethical communication fosters trust with stakeholders, attracts investors, and enhances customer satisfaction. The report also addresses the avoidance of fines and penalties through adherence to ethical guidelines, the importance of training employees in ethical communication practices, and the management of ethical dilemmas. Ultimately, the report advocates for a business environment where ethical communication is prioritized to drive productivity, profitability, and long-term sustainability.

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ETHICAL COMMUNICATION IS AN ESSENTIAL PART OF A
BUSINESS
May 19, 2018

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EXECUTIVE SUMMARY
Worldwide associations are quickly changing in mechanical, lawful, monetary, social,
and political structures with contending partners and also control claims. They are
inserted in and communicate with numerous evolving nearby, national, and global
conditions. These conditions call for business ethics much of the time for legitimate
interrelation and interactions among businesses and economies. Associations are
beginning to receive ethics programs as a reaction to the negative attention related to
interactions with various situations. Keeping up open trust is fundamental for
associations to get proceeded with help from providers, clients, and in addition different
partners. Ethics assumes an essential part in the advancement of a key arrangement.

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Introduction
Ethical communication in business refers to the process whereby individuals in an
organization exchange information between or among themselves and other different
groups or bodies such as the government laws and regulatory bodies. A successful
communication results when both parties (sender and receiver) fully understand the
communicated information. Business communication era today is highly informative with
technological innovations; therefore, businesses should ensure effective and efficient
communication in line with the changing technology. Ethical communication should be
maintained both internally and externally. It is important because it aids in the creation
of a good reputation or image of a company to the general public. A firm which
considers ethical communication practices is highly preferable by consumers and it
increases the firms’ chances to thrive easily thrive into the competitive external markets
(Byung, Francis, Andrew & Tony, 2014)
An efficient ethical communication should be accurate and truthful. A false information is
dangerous as it is likely to expose some risk to the organization leading to closure or
bankruptcy. For an information to be accurate, the source should be well identified and
tested. The second characteristic is that an efficient information should expose all
crucial information. In many organizations, information is an essential element and a
required decision-making tool. An organization should ensure that all crucial information
is fully communicated as well as practicing caution in communication to avoid delivering
an incomplete information. Conveying an incomplete message creates a bad image and
reputation of the organization to the general public (Claudia & Painter-Morland, 2014).
Another essential feature of ethical communication is the maintenance of audience
relationship. Ethical communicators should always build and maintain a strong
relationship with their audience as this place both the communicator and the audience
at the bar as well as making the audience feel comfortable and secure. Also, ethical
communication should encompass information transfer without displeasing the
audience. It is important for a communicator to deliver information in a significant
manner. For instance, managers and directors may demand employees to increase

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their value of efficiency but they become displeased if they are demanded to do the
same. Employees could be requested in an appropriate manner and not just demands.
They exceptionally work well when requested in an appropriate manner and vice versa
when demanded. When employees are demanded, they work with limits and this can
have adverse effects on productivity and profitability level of the firm (Svetlana &
O'Laocha, 2016).
Ethical Communication in the Workplace
Ethical communication is of key importance in any organization today. For instance, it’s
a technique of employee retainment. This is the reason why employees would want to
stay and work for a certain firm. Employee retainment helps reduce labor turnover
cases, that may be incurred in the recruitment process. It also increases the level of
productivity and profitability because employees would love to work in an environment
which values their ideas in the decision-making process.
An example of this is the Zappos online store, according to a study conducted by Kelly,
Martha & Annie (2013), the number of job applicants desiring to work for the firm was
relatively high because the firm was known of a good and great working environment.
Kemi & Emem (2016) add that employees need to be valued and appreciated, they
should also be involved in making organizations decisions as well as the contribution of
ideas on creating a conducive environment for working. Another important factor is that
efficient communication ethics employed by an organization may attract the public and
create the desire for working with a company with such a great reputation. In the long
run, the company will benefit from quality services and highest profitability levels
because it will be in a position of employing talented and expert individuals depending
on the scope of the firm’s operations.
The business market today is very competitive and so business firms which become
successful thrive well into the market and maintain a global competitive advantage as
well as highest standards of ethics. A competitive business firm is likely to attract more
investors thereby increasing the firm’s share price. A firm which successfully operates in
a competitive market is unlikely to be taken over. Red Bull company is an example of a

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competitive business firm. Ethical communication is also important because it attracts
consumers to continually purchase and use the company’s products (Laszlo, 2011).
This is effective in an organization which has a great reputation and a strong image.
Reputation is an important firm’s asset but the most difficult asset to be built once it is
lost. Basically, consumers would want to purchase goods and services from a firm
known to have a strong code of ethics and standards as they perceive that they will be
fully satisfied with their products or services. As the firm’s products are purchased at a
higher rate, then a significant growth in sales and profits are realized. This also prolongs
the existence of the firm in the competitive market (Steve, 2014).
Ethical Communication to Avoid Fines and Penalties
A company operating within its own set of ethical guidelines is less likely to be subjected
to the risk of heavy fines as well as the breach of laws governing the ethical conduct.
Ethical communication should involve accurate and true information. For instance, some
firms may make advertisements in an accurate manner but the design and presentation
format may confuse the consumers or rather the information may be incomplete. This
makes the information sound unethical and in case consumers find out the fundamental
reality behind the product being advertised, their trust to the firm and its products
diminishes resulting to poor sales growth and low profitability levels. Businesses should
conform to the code of ethics developed by International Association of Business
Communicators (IABC). The IABC requires business firms to be accurate, truthful and
ensure a quick correction of inaccuracies immediately they occur.
Business firms are required to respect different beliefs and cultures as well as protection
of human rights and freedoms. They should adhere to the laws, regulations, and
guidelines of the particular industry. Confidentiality of information and data should be
maintained unless when it is supposed to be public. Unrealistic promises to consumers
and clients should also be avoided. For instance, the American Aluminum Company
uses a compliance approach which ensures that nobody in the company (including the
managers and directors) goes against the laws, guidelines or procedures put in place.
This approach is reinforced by the corporate administration and it is helpful because it

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ensures the firm operates in an ethical manner. It also helps in protecting the firm from
closure or bankruptcy thus increasing both productivity and profitability levels
(McManus, 2011).
Training Employees
An organization should offer appropriate and efficient training programs to its
employees. This is because different individuals have different ideas and perceptions on
communication ethics. For instance, employees in an organization may view taking a
firms’ pen home as a normal thing and see it as unethical taking business products or
supplies for personal uses. Ethical communication training should be done according to
the culture and the needs of the firm’s stakeholders. It should also involve contingent
models as part of the physical training process. The training should be realistic and
involve daily operations or activities run in the organization. Training in many
organizations can be offered through presentations and lectures, case studies and
business scenarios, use of ethics games and other modes such as web-based training.
In a general view, training is essential because it enables employees to know what is
right and what is wrong for the business. This is likely to boost the firm’s reputation and
profits.
Ethics communication in business is a broad field which should involve training and
quality standards for practices of ethical norms. In any business organization, unethical
communication cases may occur. Examples of such ethical dilemmas are rumors and
gossip, lies, ambiguity and euphemisms. A business owner should be able to
understand the impact of ethical issues on the company’s daily operations and make an
attempt at eliminating non-ethical issues in an accurate manner whenever they arise.
For instance, The Oil Giant company was exposed in the year 2001 because of
misrepresenting the company’s profits as well as inaccurate bookkeeping of the
accounts records.
This resulted in changes in the prices of the stakeholders and loss of large amounts of
funds by the public shareholders. The organization became bankrupt but later on the
public shareholders gained protection from the Sarbanes-Oxley Act which was
established in 2002. The Oil company could have been closed down were it not for the

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Sarbanes support. Basically, a business firm should always ensure proper maintenance
and accurate record of the books of accounts as well as conducting ethical accounting
practices for it to operate efficiently without closure or cases of bankruptcy (Seleshi,
2011).
Conclusion
Ethical communication is essential in any business today. A business can either
increase or decrease sales based on the firm’s ethical background and reputation.
Managers and directors should use ethical communication structure when
communicating with employees and not demand them. This will make all parties in the
firm be “on the same page” as the employees will feel valued and respected. Internal
communication of ethics in business is essential as it portrays a good reputation of the
firm to the general public. The firm will also develop and uphold a good and strong
relationship with the government. Efficient ethical communication between employees
and managers leads to increased customer satisfaction because happy employees will
always offer great services to customers. In the long run, this is likely to increase the
level of productivity, sales growth, and high-profit returns.

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References
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Kemi O. & Emem L., 2016. Ethics, workforce practices and sustainability by multinationals in
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Laszlo, Z., 2011. Environmental ethics for business sustainability. International Journal of Social
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