
1 minute read
• Howethical stance affectsthe overall impact on organisational practice?
• Positiveimpacts
• Ethical practices help companies to develop an excellent reputation.
Advertisement
• Reputation helps bring in additional customers,generates positive publicity, and can help solidify support for the organization in times of crisis and controversy
• On a more positive note,an establishment that gives significantly to charity eachyear is practicing ethical behaviour and exhibiting corporate social responsibility (Stouten et al., 2010).
• While this practice benefits the company by allowing them to write off thedonation againsttheir taxes, it alsosends out a positive message and has a positive impact on the community
• This practice of giving back can bring in more customers,increaseor enhance positive businessrelationships, and even allow the firm to add new employees (Stouten et al., 2010).
• Negative impacts http://johnlatham.me/wpcontent/uploads/2013/12/BUG_5e_Example_Section.pdf
• Legal problems: Businesses that act unethically in ways that break the law mayface large fines and other penalties.
• Pooremployeeperformance:A lack of ethics withina company affects the way employees do their job. People can decide that because leaders can break the rules, theycan too. This can lead them to damage the company. Theymayalsobecome discouraged or not seethe need to work hard in an unethical environment (Bulutlarand Oz, 2009).
• Poorcompanycredibility:When a company is unethical,it affects its reputation. Not only will the leaders and company lose respectfrom employees, they will lose credibility withthe general public as well. This can resultin reduced sales, lost customers, and significant financial harm (Bulutlarand Oz, 2009).






