Contractual obligations are taken care of by the law of the land. Any contract with a supplier or a trade customer demands ethical business conduct so as to ensure that none of the parties makes unjustifiable profits. Indeed, the bulky number of suits in corporate courts and tribunals substantiate the tricky covenants added in the contracts, which leave one of the parties at unanticipated loss.
With abundant suppliers and customers, businesses rarely pay heed to the damaged relations, and disremember the lesson of good corporate governance. Eventually, the loss is shared by the whole corporate world since everyone works within the same group.
The accountability of businesses towards the society at large, or for that matter towards the government, which takes care of the social betterment, is unquestionable and crucial. Corporate taxes and corporate social responsibility (CSR) norms necessitate unavoidable contribution to the advancement of the society.
Be it a large corporate house or a small proprietorship concern, every business craves to escape liabilities to the maximum possible extent. Tax evasions with the help of dummy employees, unscrupulous accounting devices, corruption, and dodgy selling techniques have superseded all the ethical business values prescribed by corporate theorists.
It is tough to comprehend why businesses overlook a basic fact that they all earn while being a part of the society. The stakeholders, be it the consumers, suppliers, creditors, employees, or the government, are the vital pillars in the triumph of any business concern, hence ethical values and good corporate governance deserve devoted attention.
Rather than escaping the fusion of business practices and business ethics, the top to bottom hierarchy of workforce needs to be acquainted with explicit corporate guidelines, and any deviation shall be recorded and curbed. The boost in the contentment of all stakeholders is sure to advance profitability of businesses.