Ethics VS. Profit
Role of Ethics in Business as Human Resource
As a human resource manager, maintaining the ethics that the organization upholds is crucial in imposing good governance on each and every employee whatever their hierarchy they belong to. If the management promotes well-established practices in an ethical manner, then, the employees will eventually follow the steps accordingly as they are being led by good examples. Moreover, it allows employees to build their integrity as well as to conduct themselves according to what they ought to do and distinguish things from what is actually right or wrong. Their moral judgment will dictate the decisions that will be best for them as well as for the entire organization. In addition, the organization should not only focus on the profit that it will acquire but also on the welfare of its people and how they are also being benefited from the successful operation of the business. Furthermore, the culture and principles that the organization enforces help to ensure a good reputation as well as trust not only to its employees but also to prospective investors or stakeholders. This positive image brought by the ethical standards and principles of the organization allows more people to be engaged in the business. It also strengthens the workforce as there will be people who are interested to work for the organization that fits and relates to its culture. However, in order to attain successful and sustainable growth in the business, it is also important to designate leaders who are exemplary and have the same set of values as well as principles of the organization so that the employees, customers, and even investors will feel the assurance and reliability that they provide guided by the moral compass set by the organization.
Outcomes when an organization don't consider good governance
Whenever the organization promotes good governance, endless opportunities are being brought to the plate and it spurs the growth of the entire business operation. However, without strong ethics in governing the organization, it is likely to fail and might face various possible outcomes that may affect the stability of the business. Financial pitfalls, moral dilemmas, and a decline in loyalty and trust are just among the impacts if an organization failed to deliver good governance within its reach of influence. Once the trust and loyalty of the investors, customers, or even the employees were neglected and completely tarnished by the unethical practices, it will be like a domino effect for the organization as those aspects are the key to the growth of the business. It will increase the risk of not just losing the workforce but also the company itself. There’s also a high possibility that the organization may face bankruptcy and enormous debts caused by the wrong decision as well as tactics of the leaders of the management. Moreover, an organization that loses its credibility will likely affect employee retention, results in failing sales, and eventually hit the rock bottom. For this reason, it is crucial for the leaders of the organization to be held accountable for any of their unacceptable actions. Furthermore, personal vested interests must be set aside and instead prioritize what is best for the entire organization. Therefore, a more transparent, ethical, and trustworthy management, opens the gate to the progress of the business. Leaders of the organization must do their huge obligation and be committed to imposing ethical policies and considering good governance that promotes the overall sustainability of the business.
