In business ethics our goal is to do the right thing. One type of business reciprocity that would be ethical and appropriate would be a gift, which is something that is given without someone expecting that you or the company will do something for that person in return. Even though this business follows all ethical practices, there are certain facts about this business marketing that some people find hard to digest.
To compete with larger businesses, it may be tempting to abandon ethics just to make an adequate profit. They assert that to assume that the primary function of a business is to serve its client base in an ethical manner is idealistic and that the nature of a free economy dictates that ethics must take a back seat to increasing profits.
Ethical behavior and a culture of ethics will result in many benefits, including: improved employee relations, enhanced worker productivity, positive morale and an enhanced company image. There are economists that assert that, in any competitive economy, ethics are impossible to uphold; that a company can legitimately bypass ethics with the excuse that unethical practices are the only way to make a profit.
If your company is new, unstable, about to be sold, or going out of business, ethics requires that you let clients and customers know this. Companies which conduct business in an unethical manner run the risk of harming not only its stakeholders, but also the general public.
Ethical behavior doesn’t always insulate a firm from lawsuits, bad publicity, or other such negative and costly conditions, but it can certainly reduce the probabilities or mitigate the damage. Institute of Management Accountants Standards of Ethical Conduct (IMASEC) applies to all facets of financial management and accounting.