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MGT610 Business Ethics GDB Solution Fall 2012

Today’s organizations are facing stiff competition due to rapidly changing trends, unending advancements in technology and above all the knowledgeable customers. On the other hand profitability is the basic and utmost requirement of an organization to survive in such a highly competitive and turbulent environment.

In some situations, it becomes very difficult for organizations to create a balance between the ethical practices and profitability. In your opinion how is it possible for an organization to continue business maintaining a good balance between the profitability and ethics?

Solution:

Here are some “ways” through which a company can maintain a good repute (keeping intact basic ethics) alongside a steady flow of profits.

(A) MANAGEMENT. The ethical stance of a company originates from the consistent integrity of its senior officers. From the first day in business, they inform all employees that the primary focus of the organization will be equitable and unbiased service. Customer satisfaction will always be given top priority.

These objectives should be proclaimed proudly in all media advertising. Members of the public, frustrated with the half-truths and price-gouging so prevalent in business today, will be more than willing to give this refreshingly honest enterprise a try.

(B) STAFF. The employees must also be committed to the maintenance of high ethical standards. In turn, they, themselves, must be treated as valued members of the organization and be well compensated for their work. Overtime hours and contributions to the efficiency and improvement of the operation must be recognized and rewarded.

The staff will become ambassadors of goodwill for the organization. Word will soon be spread around the community that the company is a great place to work, and there will be no shortage of skilled and qualified workers anxious to come on board as the company grows.

(C) CUSTOMERS. With competent workers, high ethical standards and an overall commitment to excellence, any organization will very quickly secure a nucleus of satisfied customers and all their repeat business.

Of course, there will be the occasional slip-up, whether through accident or human error, but when it happens, every employee will go out of their way to make amends and ensure that the customer suffers as little cost and inconvenience as possible. Steps will also be taken to assure that particular mishap will not be repeated.

( D) THE COMMUNITY. The community will become your advertising agents. You will be recommended to the friends and neighbours, relatives and co-workers of your regular customers. Your reputation for high ethical standards, honesty, and good service will draw an ever-increasing number of new clients . Your greatest problem will be finding time and room to expand.

(E) YOUR COMPETITORS. They will notice their customer base dwindling, and realize they either have to adopt improved professional practices or look around for another location outside the sphere of influence of your company and its satisfied and loyal customers.

The link between business ethics and profitability is undeniable. Smart business owners know this. They repay their staff and customers by being honest, trustworthy, conscientious, and by sharing some of the benefits and profits they accumulate through others’ effort and loyalty .

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