Ethical relationships are a key part of a well running organization, a lack of ethical behavior or unethical decision making can lead to plenty of problems for businesses. Ethics impacts an organization's culture, moreover the success of the organization. Creating an ethical culture in an organization helps to build employee loyalty, moral, as we as, builds a strong reputation in the business community. Having a strong ethical foundation in an organization is an important factor in how they are seen by others. If an organization has a reputation for acting unethically potential investors and customers will be less inclined to do business with them. Promotion of ethical standards in business relationships in a proactive way will lead to a more proactive business environment, and the company will have a more productive also provides a comfortable work environment. An organization which does not place value on ethical standards, where theft, dishonesty, fraud, and other unethical practices are present, the success of the company will suffer. Ethical relationships with customers have a direct impact on the success of a company; a company that provides good customer service, quality products, and positive relationships will lead to customer loyalty. …show more content…
Leaders should build on a foundation of ethics to guide employees by example, making ethical decisions and hold employees to the same ethical standards. By providing leadership with high ethical standards, and by demonstrating the characteristics and integrity expected of the organization communicates a clear expectation for employees to follow. By building trust, credibility, and respect an ethical leader can have a positive impact on the reputation of the organization. Leading with ethical practices shows the values of the company and a moral obligation to do what is right, also encouraging others to be ethical leaders as