Chapter 4

Business ethics is related to the moral and ethical values ​​of a company within its field of activity, as well as in front of its customers and competitors. Her values ​​are the same that govern ethics as a whole and the conduct of relationships in the social environment.

The effects of ethical business practices can financially benefit a company, helping it get what it needs to grow.  In other words, ethics is related to the principles and values ​​that an individual uses to base his activities and decisions. In an organization, a code of ethics is a set of principles that guides it in its programs, policies and business decisions. The ethical philosophy that an organization builds to do business can affect its reputation, productivity, and its financial results.

The value of strong ethical practices can be found in your business reputation and company brand. As a business leader, you are also a seller of goods or a provider of services. Therefore, customers must believe in your brand to make repeat purchases. Since consumers can often buy a product or service similar to the competition, business ethics helps your company differentiate itself from other offerings on the market. A business is seen as a single entity by its suppliers, its community, its employees and other organizations. The company's actions, not the actions of a single individual, determine how it is perceived by others. A well-established code of ethics ensures the presentation of a unified image, keeping it positive and standardized across all internal and external elements.

The ethical conduct of business leaders to manage employees can have a strong impact on worker morale and loyalty. The code of ethics adopted by the leadership determines disciplinary procedures and acceptable behavior for all employees in an organization. When leaders themselves present high ethical standards, it encourages the organization's employees to live up to those same standards and prevents demotivation at work. Ethical leadership also improves the company's reputation in the financial market and in the community in which it operates.

Pressures within the organization can lead the manager to make decisions that are not comfortable for him or her. Factors such as personality, religion, family influence, for example, can influence a manager's ability to make ethical decisions.

Talking about ethical decisions, we cannot forget to mention sustainable development. This term refers to actions that focus on economic growth without compromising the needs of future generations. In this sense, organizational sustainability is related to the company's long-term growth, considering the preservation of the environment and the society in which it is inserted and the well-being of the people who are part of it.

Organizational sustainability is based on a series of actions that companies must focus on to ensure their sustainable growth. These are the three basic pillars of this concept – the tripod of organizational sustainability:

·         Compliance with external standards (environmental legislation).

·         Establishment of internal practices (example: energy saving program).

·         Water care and product disposal.