Why Ethical Business Practices and Profitability Don’t Have to be Mutually Exclusive
In recent years, we’ve seen some of the world’s leading organizations commit to using ethical business practices with great financial and social success. Ethical business is a broad concept, but it generally implies conducting business within society’s moral expectations and maintaining the overall well-being of society as your top priority.
Implementing ethical business practices at your organization is easier than you might think, and it can dramatically improve both your public perception and your bottom line. Our society is more concerned with ethics and sustainability than ever before, which makes now the perfect time to implement ethical business practices at your firm.
Here are six important reasons why running your organization ethically can actually help you become more profitable.
Consumers Choose Ethical Products and Services
Our current global political and socioeconomic climate is leading consumers to rethink how they shop. With limited money to spend, shoppers want to make sure they’re purchasing items from organizations who consider ethical issues in business practices.
Ethical business concepts like sustainability, fair trade, and transparency are very easy to market and can become a pillar of your brand identity. Customers are also more likely to be loyal to ethical brands and may even stop shopping with brands that go against their values.
Using your ethics as part of your marketing campaign can help you draw in more revenue and keep your customers coming back as a consistent source of income.
Ethical Practices Can Reduce Production Costs
Not only can ethical business practices create more revenue for your organization, but they can also reduce your production costs.
Producing your products sustainably and making an effort to use less water and energy can lower your expenses. Making products with minimal packaging is also typically more affordable since you’ll save money on costs for the materials and the labour required to create the product. When managed correctly, fair trade is another way to help you save money as it allows you to work directly with independent artisans and manufacturers instead of large corporations.
These are just a few examples of how creative and ethical business practices can help you save money while still keeping the public’s best interests at heart.
Investors Feel Confident About Ethical Organizations
When getting your organization off the ground, it helps to have the financial support of investors. With more capital, you have more flexibility and control over the direction you want to take. Discerning investors love ethical organizations and feel more confident in putting their money into businesses that share their values. Starting with ethical business practices from the beginning can help you grow faster and gain more investor support.
Ethical Practices Improve Your Global Reputation
In today’s digitally connected world, reputation is key for any organization. Generating name recognition is crucial for drawing in new customers, and a good online marketing campaign that shows off your ethical practices can be great PR. Ethical practices will help you create media buzz, something that’s helpful when trying to improve your brand image.
Consumers are also more likely to leave positive reviews online about organizations who share their values. Many consumers turn to online reviews when they’re shopping to help them make their final decisions about the products and services they use. Getting positive reviews from unbiased customers can go a long way towards improving your brand image and getting the general public to see you in a positive light.
Finally, consumers are more likely to feel confident in an organization who uses ethical practices, even if you hit a rough patch. Having support from the general public can make it much easier to navigate the ups and downs of growing your venture.
People Like to Work for Ethical Organizations
As an organization, you need to do more than just keep your customers happy – you need to keep the people who work for you happy as well.
Employees who are invested in their employer’s overall goals are going to be much more productive. They’ll also be more likely to respect and trust the organization’s leaders. Many people dream of working for an employer that aligns with their values and will actively seek out organizations that are using ethical business practices. This goes beyond just finding great full-time employees – it’s also easier to attract talented, motivated freelancers and contract workers when you use ethical values in business practices.
Both full-time employees and freelancers will also be more likely to stay with organizations who share their values, so you won’t have to spend as much time hiring new talent and managing turnover.
You Can Feel Truly Confident in What You Are Doing
Running a growing organization is incredibly challenging, and in order to succeed you’ll need to be able to stand behind the work you’re doing.
Running a completely ethical organization can actually reduce your stress levels since you know that you’re running everything by the book. Ethical business practices are going to easily meet your local and federal business regulations and may even qualify you for certain professional distinctions that could improve your public profile.
When you know you’re addressing ethical issues in business with positive practices, you and your team can confidently stand behind your work.
Find Freelancers Who Share Your Values
Running your organization ethically doesn’t just help the world around you, it also has real benefits for your bottom line. As an ethical organization, you’ll draw in loyal customers and attract incredible talent.
Work for Impact can help you find freelancers who share your values and want to help you achieve your goals. Our platform connects impactful organizations with talented individuals who believe in working for the greater good. Click here to sign up and join a community committed to a new way of working.