3 Reasons Why Social Responsibility And Ethics In Business Is Important

Running a socially responsible and ethical company isn’t just the “right” thing to do – it’s often the best thing for your business.

By creating a company that stands for ethical values, you show people integrity and empathy, characteristics that many seek in the people they do business with.

Why is social responsibility and ethics important in business? Here are three good reasons.

Reason # 1: People Want To Buy From Ethical Businesses

Take the wholesaling industry for example. This is typically a cut-throat industry with razor-sharp profit margins, often under 10%.

Yet still manufacturers of green and eco-friendly products are finding that more and more wholesalers are placing orders from them rather than their more established competitors.

Why? Because more and more people are choosing to buy socially responsible products and not purchase from companies that damage the environment.

Socially responsible and ethical products don’t cost much more than their socially irresponsible counterparts.

More and more smart consumers are switching to socially responsible products.

Reason # 2: People Want To Work For Ethical Businesses

Would you rather work for a company that stands for something benefiting humanity as a whole, or a company that just stands for its own profits?

Employees in ethical businesses are often willing to work harder, with more passion for the same or even sometimes less pay than their more cut-throat counterparts.

Not only will people give more to your business without you having to ask, but you’ll also enjoy working there more!

When the people around you love their work, you’ll naturally enjoy your working environment more.

Reason # 3: People Want To Partner With Ethical Businesses

Socially responsible and ethical businesses often find that other businesses come to partner with them before they look to partnering with other less socially responsible companies.

Take Kiva for example, a non-profit micro-loan facilitation website.

They get literally hundreds of thousands of dollars every year in free legal and organizational work that they’d never get if they were primarily motivated by money.

You don’t need to be a non-profit company to get the same treatment.

If your company as a whole conducts business in a way that benefits the greater good, people will generally want to do business with you rather than the other guy, all else being equal.

The bottom line is, people want to be associated with businesses that are moving towards being socially and ethically responsible.

The days when businesses can walk all over their employees, trash the earth, destroy the long-term health of the economy and still prosper are over.

Today consumers, employees and business owners alike are becoming very aware of the many social and ethical issues that abound in today’s world.

Building a business that caters to this awareness is not only the right thing to do – it’s smart business!

Do you think certain “big businesses” are not being socially responsible? Chime in!

Have an awesome day!

Pam Lawhorne

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  • http://www.dowcorning.com/content/construction/landing/building_assembly.aspx?cpn=DCC10BAP2&WT.dn=dowcorning.com/envision jon@green building

    It is great to see that more and more businesses are really starting to look at being environmentally friendly and energy efficient as they make their business decisions. At the same time, I also think the number of individuals who are taking the time to educate themselves as to which businesses are operating green and are making an effort to deal with those businesses over ones that are not making ethical choices is increasing. Let’s hope that these trends continue and we can make a difference in our future.

    • http://www.pamlawhorne.com Pam Lawhorne

      Hi Jon!

      I agree. And I too hope that it’s a “fad” that continues to grow. Most people do not think much about the effects of what they do so it never hurts to point it out every now and then! ;o)

      Thanks for dropping by!

      Pam

  • http://www.arbitrageportfolio.com Jeff@arbitrage portfolio

    Thanks Pam. Great insight. I agree with all your words!

    I think the reason why you really need to have a social responsibility is to show that you are really serious with your business and to have a social media exposure as well.

    • Pam

      Jeff -

      I think that’s an excellent response and I couldn’t agree with you more!

      Thanks so much for chiming in!

      Pam

  • Roy Cespedes

    I just wanted to thank Pam personally for this article. I am completing my Bachelors of Business Administration this year and was tasked with addressing “why ethics are needed in an organization” and her article summed it up quite nicely…thanks! Roy Cespedes

    • Pam

      Hi Roy!

      You are welcome and I’m glad that it helped you out. Please come back and let me know what your final grade was!

      Pam

  • http://facebook.com/profile.php?id=100003344698006 Nurul Islam Nahid Ridon

    Thanks for it.