top of page

Ethics Failures Impact On A Business Bottom Line

The road to success or failure

Day by day fierce competition is threatening the soft edges of ethics. Ethically responsible business enterprises comply with the laws, manage risks, enhance reputation and add value to the community. In fact, more precisely a business bottom line needs to be transformed into a triple bottom line.

Ethics are the main pivots over which the businesses now revolve. A substantial positive change in the direction of compliance, control and communal responsibility always brings ethics into the forefront. Ethics failures impact a modern business more than ever before in the history of business world.

The top management of any business plays a main role in reaching to an enduring success. It is done through consistent performance as well as on organization’s vision that is built on ethics. Ethically, treating employees, good relationships with the public and correct information shared with stakeholders are all responsibilities of the top leadership and have a direct impact on the overall growth of the company.

When these integral aspects of any business are not performed with a definite support of business ethics from the top down, each aspect of the business under the management team has a greater potential to weaken in the short or long term.

An ethical business not only abides by laws and right relevant rules, it also operates honestly, competes fairly, provides a reasonable environment for its employees, and creates partnerships with customers, vendors, and investors. In other words, it keeps the best interest of all stakeholders at the forefront of all decisions.

Failure in ethics nowadays essentially put a negative impact over a business bottom line. Being unethical directly affects the efficiency of a company. Bottom line is all about gauging the efficiency and translating it into net worth of a company.

Usually an unethical business involves the following:

  • Managing the employees, customers, investors, community and all other stakeholders with disrespect and inequality.

  • Communication with all stakeholders internally and externally with dishonesty.

  • Keeping their integrity low while dealing with everyone.

  • Low standards for personal accountability and behavior.

  • Not clearly communicating of internal and external policies to relevant stakeholders.

In today’s business environment, the line between right and wrong is difficult to describe. The businesses which involve in unethical behavior face counterproductive dilemma. It effects their growth, efficiency and workers alike. People working for a company that is unethical, deceptive and dishonest in their conduct will be directly affected and affected harmfully.

Best leaders have now understood that there are a lot of preemptive processes (besides hardcore efficiency boosters) that can and should be used to lower the frequency of business failure. Leadership from the top is so spirited to successfully shifting from damaging values to more effective and principled ones. People now are recognizing the difference between negative and positive and its ultimate impact.

To successfully avoid the business failure due to ethics failure, companies need to put their perspective right. Awareness, accountability, trust, justice and above all organizational integrity should be pure and flawless. Yesterday’s businesses used to focus on efficiency only; today they need to incorporate ethics as well.

Are you looking to implement strategies and programs that focus on ethical leadership? We can help! Fee free to email us at

Featured Posts
Recent Posts
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
bottom of page