How Corporations Profit From Ethical Business Practices

Author: Jennifer Luo

Marketplace Secrets with AdSpaceUSA

Before getting into how ethical business practices can improve your sales, we must first establish what business ethics are. Business ethics are the implementation of policies and procedures that guide corporate behavior by addressing topics such as social responsibility, insider trading, discrimination, corporate governance, and bribery. Especially when addressing employee or customer treatment and controversial subjects, businesses constantly reform their policies as issues arise in today’s market.

Ethical business practices embody policies that nurture a workplace culture that complies with the enterprise’s ethical and legal obligations by meeting customer, employee, stakeholder, and community needs.

So…Why is it Beneficial to Your Company?

Profitability

Generating revenue is the goal for every business wonder and while discounting company ethics may have its short-term benefits, it can actually damage your brand in the long run. Establishing ethical business codes can not only prevent long term consequences associated with immoral practices but also leads to long-term sustainability and profitability. Within the past decade, PepsiCo Inc. has reported that it has saved more than $375 million since its institution of clean and environmentally friendly policies, and Hilton Worldwide has announced it saved about $550 million since 2009 as a direct result of its energy, waste, and water-reduction strategies[SOURCE].

There are several factors to the success of these waste-reduction strategies; one of which can be attributed to the connection created with customers who value environmental conservation. Connections founded by shared values bring in stable sales through customer loyalty and retention.

In addition to producing clean products, establishing a positive relationship with customers through honest and quality customer service is increasingly important to your company’s long-term sustainability. Prioritizing customer needs and enhancing the quality of your services build customer trust and keep your clients coming back for more. Honest policy codes not only preserves customer interest but also generates an influx of new consumers through positive reviews and personal recommendations from your happy customers.

Rodriguez, Alan. “Girl in Pink Jacket Holding Green Maple Leaf.” Unsplash.com, Unsplash, 29 May 2021, unsplash.com/photos/USiA1Hcizk8. Accessed 31 May 2023.

Quality of Internal Affairs

Every successful business shares an important quality – productiveness. Productivity determines your revenue by measuring your business’s output in correspondence to the resources you pour into producing those services. Studies have shown that employees that buy into the organization’s values and believe that they are making a difference have markedly better performance and increased productivity in comparison to their unmotivated counterparts. By establishing an honest policy that adopts a strong sense of social responsibility, your company’s employees are dedicating themselves to a corporate culture that holds the business socially accountable to itself, its stakeholders, and the public; thereby, these policies will increase employee engagement and well-being and, effectively, boost your company’s productivity.

Having an honest corporate culture will also build trust with your customers, stakeholders, and even potential business partners which helps greatly with negotiations and promotes your public image.

Public Image

One of the greatest measures of your company’s influence on the marketplace is its reputation. A good reputation increases not only the quantity but also the quality of your customers. Customers are likely to spend more money and come back for future purchases if your company provides reliable and quality services. Likewise, reputational damage can lead to legal issues, costly fines, and loss of business. Avoiding drama and backlash is essential to maintaining a stable revenue stream in the marketplace and maintaining good brand recognition.

But…Don’t Forget

Aside from the long-term sustainability and profitability ethical business practices provide, do not forget that the decisions you make for your business are those that shape our society. Businesses are the painters of our social scene and with every decision you make, you are given the opportunity to help paint a beautiful future.

Join Us

Establishing ethical business practices is key to business success. At AdSpaceUSA, we use vegan inks to print our advertisements and work with more than five charities. Join us in our journey to supporting our local businesses and start marketing with us today at adspaceusa.com.

We offer free graphics design services in addition to our paid online advertisement services and print advertisements on school athletic posters as well as mugs, placemats, and take-out menus at diners. Happy advertising!