Every Firm needs to respect moral codes of behavior i.e. business ethics. These principles ensure a better consistency and effectiveness of the firm but should also provide benefits to the environment and third parties. Business ethics might influence how individuals of an organization make their decisions and may also act as a business strategy to endorse or improve the performance of a business on the market.

Nowadays, many companies are implementing sustainability schemes like “Chiquita” one of the world’s biggest supplier of fruits. Protecting the environment using “sustainable farming techniques”; allowing “products to be certified with environmental standards” and also by using non-toxic fuels are Eco-friendly actions that provide both welfare to the firm and society. Other ethical initiatives such as promoting “more women and ensuring there is no sexual harassment on the plantations it owns” values the organization’s philosophy of integrity and equity at the workplace. This incentive provides motivation, more chances to enhance productivity, quality of products and reduce wastage. Furthermore, good business ethics reflect a better brand image, as more potential customers; investors are likely to give their trust and it gives the possibility to maximize sales and profits in the long run.

Organizations that violate business ethics such as child labor are often unsuccessful and have to face consequences. Even if a business has to confront conflicts with stakeholders whom might not share the same ethical perspectives, it is important to stick to one’s own responsibility of behaving morally and ethically.

Link to article : http://www.economist.com/node/21551500