Management ethics refers to social norms and values of a firm. It is a most important factor that is required for the long run survival of the business. There are several benefits or importance of management ethics such as improvement of goodwill and image, promotion of fair competition, fair pricing, maintaining better relationship among the stakeholders etc. Importance of management ethics are described briefly in this post.
Importance or significance of management ethics can be highlighted as follows:
1. Maintains Good Image And Goodwill
Business ethics or management ethics gives importance to the expectations of customers. It promotes better quality and fair price of products and services. It discourages black marketing and artificial shortage. So, it helps to increase goodwill and image of the firm.
2. Better Relation
Ethical behavior of managers promotes coordination and cooperation at the workplace. It also helps to establish good relationship with stakeholders such as shareholders, workers, government authorities etc.
3. Long Run Survival
Management ethics gives focus on proper wage, good working condition and attractive reward system. It also gives emphasis on customers needs and tries to fulfill them. So, it ensures long term survival of the company.
4. Fair Competition
Management ethics promotes fair competition in the market by discouraging adulteration, unfair pricing, black marketing and artificial shortage.
5. Less Government Interference
Because of moral behavior of the firm, it requires less government regulation and interference.
6. Better Working Environment
It ensures health and safety of employees, promotes feeling of equality and motivates workers towards the achievement of goals. So, it helps to maintain good environment at the workplace.
7. Increase Productivity And Profitability
Because of proper working condition, customers satisfaction and good image, firm can increase its productivity and profitability which ensures uniform growth of the company.