I was thrilled when i read the article of ford’s ethical and social responsible methods in running their business, reading my colleague blog gave me a better insight on how a company can balance between their social responsibility and self interest of the company.
Seeking to be an entrepreneur , i found it very important to focus on the ethical responsibility of my business , as much it is important to focus on the profitability of my business. Being an ethical company will :
- attract customers to the firm’s products, thereby boosting sales and profits
- make employees want to stay with the business, reduce labour turnover and therefore increase productivity
- attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees
- attract investors and keep the company’s share price high, thereby protecting the business from takeover
Companies increasingly recognize the need to commit to business ethics and measure their success by more than just profitability. This has led to the introduction of the triple bottom line that we took in class, also known as “people, planet, profit.” Companies report on their financial, social and environmental performance.
Moreover, Ford was able to motivate their employees by paying them more to increase their productivity so they can own a ford car. this was done by sacrificing some of the retained profits, but have led to the development of a highly motivated workforce that enhances the image of the company.
