In business ethics our goal is to do the right thing. Taking an insurance cover is paying some amount of money called the premium, to an insurance company, in lieu of which, they take your financial risk on their head. Many times business owners are worried that having textbook business ethics will cause their business to fail because of reduced profits, when actually the opposite is true.
Social learning theory provides the greatest evidence that ethical development is a conscious and ongoing process; yet individuals selectively and conditionally choose the characteristics of the model they wish to adopt, they do not simply parrot ethical behavior.
To achieve ethical equilibrium positive values (those of giving) and the negative values (those of taking) have to be understood and the effects of these values on the business. Successful companies work hard to inject ethics and morals in everything they do and they take responsibility for their actions.
Take good care of your employees by incorporating workplace safety management in your organization. Ethical businesses treat people with respect, honesty and integrity. Your profits will increase because you have a business that is fair to work for, ran smoothly, with effective management, and happy staff, combine that with happy customers and you have the formula for a healthy business with healthy profits.
In too many organizations “ethical issues are often positioned in opposition to the more important questions of organization profitability” (p. 4). However, in the new paradigm, shareholders cannot be seen as the only, or the most important stakeholder.