eth·i·cal (ĕth′ĭ-kəl) adj.
In business, being ethical means to operate under a standard conduct of honesty and fairness with those you interact with; coworkers, customers, partners vendor and competitors.
It’s important to make an effort to treat everyone you come in contact with as you would want to be treated. Here are three reasons to maintain great ethical standards for your business:
- Positive Brand Image – Ethical businesses find it easy to attract customers. A customers perception of how they will be treated by a business can determine whether they choose to purchase a product from you. Customers shouldn’t have to questions the quality of a product, nor the experience they will receive from purchasing.
- Avoid Negative Publicity – All publicity is not good publicity! With so much technology at a customers’ fingertips, they are no longer hindered from publicly voicing their opinions. So, the word of a bad experience can get around pretty quickly and you will quickly see those affects on your bottom line. Today, people don’t want to purchase if you have an overwhelming amount of bad reviews. Even if you’re cheaper, people want a worry free customer experience. Be honest about your process, responsive to customer inquiries and you wont have to worry about a bad review.
- Customer Loyalty – It’s easy to be tempted to make bad choices when dealing with your customers. But don’t lie to them! High customer satisfaction breeds customer loyalty. You want them to come back to you again, and promote your business to other people. Acquiring new customers through traditional marketing channels costs you time and money, customer referrals costs you nothing.
Companies with strong ethical standards know that it affects their bottom line, improves customer loyalty and affects their reputation in the market. When you conduct your business in an ethical manner you don’t have to worry about legal fines or customer retention. Honesty and fairness are key components in ethics, with them you will ensure the longevity, reputation and success of your business.