Evaluation of What Would Happen Over A Long Period of Time to Success and Profitability of An Organisation Which Chooses to Do Away with Ethical Standards
DOI:
https://doi.org/10.53819/81018102t3137Abstract
This journal paper examines the importance of ethical standards in organizations and evaluates the long-term effects of disregarding these standards on success and profitability. The paper defines ethical standards in an organizational context and highlights their role in promoting fairness, justice, trust, and reputation. It discusses the potential reasons for abandoning ethical standards, such as cost-cutting measures and short-term profit prioritization, as well as the consequences of doing so. The paper analyses the internal effects, including deterioration of employee morale and motivation, increased turnover, and a decline in teamwork and collaboration. It also examines the external effects, such as damage to reputation, legal and regulatory consequences, and loss of business opportunities and partnerships. The paper provides case studies of organizations, including Enron and Volkswagen, that abandoned ethical standards and suffered severe consequences. It emphasizes the importance of ethical leadership in upholding standards and driving long-term success and profitability. The paper concludes with a call for organizations to prioritize ethical decision-making as a fundamental business practice to ensure sustainable success.
Keywords: Ethical standards, Long-term effects, Organisation, Success, Profitability and Justice
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