How Does Ethicality Affect Investors? And Can They Still Make a Profit?

Several factors determine the profitability of a business; some of these factors are productive and dedicated employees, professional management teams, and high consumer demands. In addition to these common factors, the success of a business is also determined by business ethics.

These are the standards for what is considered morally right or wrong in the conduct of a business—although different people have different perceptions of ethics, embracing ethicality in business management has proven to be more successful than operating in an unethical manner.

Can Ethical Businesses Make Profits?

There is enough proof that businesses that implement a philosophical management strategy that entirely relies on ethics are more successful than those that do not implement ethicality in their practices. For instance, emotionally intelligent employers have creative and happy employees. Below are various ways in which implementing ethical practices can foster the success of a business.

Ethics in Business Management

Leadership in any organization is indeed critical for its long-term success. Therefore, organizations whose leadership is solely based on ethics are more likely to have consistent management.

A business is more successful if it embraces ethical practices such as employee management, accountability, information dissemination, and interactions with the general public. If all integral aspects of business management are performed with a clear theme of ethics from the top leadership, the management team will likely gain momentum with time.

Ethics On the Morale of Employees

Businesses that have realized the need for ethicality when dealing with their employees are likely to have more productive workers. Firstly, they are satisfied with the environment in which they work. Therefore they will be more willing to better utilize their skills and creativity for the betterment of the business.

Contrary to that, unethical conduct at the workplace can lead to widespread unrest among employees. As a result, they become more dissatisfied with what they offer to their employers, leading to poor performance.

Importance of Ethics On the Public Image

Keeping ethicality in mind when interacting with key players and stakeholders such as shareholders and customers is very important because a business is nothing without these key players. The profitability of companies, especially those publicly traded, are at risk of losses if the public discovers information concerning the company’s unethical practices.

If a business loses public trust, it takes a long time to regain it, which leads the company to huge losses. A report released in 2019 by Toluna shows that the purchasing habits of consumers are changing over time to favor those brands that are environmentally conscious.

Therefore, upholding the highest standards of ethicality when interacting with the public is essential because a business will only be profitable if consumers are willing to buy its products or services.


A business that embraces the highest ethical standards is more likely to be profitable. Moral values are essential in business management because good leadership is very crucial for the long-term success of a business.

Ethical behaviors are also critical in boosting employee morale because they feel more satisfied with their work environment and are more productive. It is also true that ethical practices create an excellent public image for the company leading to an increased number of customers.

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