Wednesday, October 16, 2019
Ethical Business in the UK Essay Example | Topics and Well Written Essays - 750 words
Ethical Business in the UK - Essay Example A survey done by UKÃ¢â¬â¢ Institute of Business Ethics revealed that the ethical companies posted better performances when compared to those that were not. The institute made comparisons of the economic value added (EVA), price and the market value added (MVA). One of the reasons why the ethical companies outperformed those that do not be not was because of the high productivity of their employees (Palmer, 2010, 99). It is very rare that these companies lose their best workers and thus the production process flowed effectively. The other factor that is pointed out as making the ethical companies perform exemplary was due to the positive reaction to people to their products and services. In many cases, people preferred to be involved with the ethical companies that are operational in the UK. The last factor lead to the better performance of ethical companies is that highly qualified employees and executives are normally attracted to such companies. Economists argue that the focus on ethical companies came as a response to an environment characterized by aggressive enforcement. The financial crisis that took place in the UK made the ethical companies skate the financial downturn (Flynn, 2008, 121). Unlike the olden days where business leaders just rolled down their eyes on the mention of ethics, many managers recognize the role that ethics play in their businesses. Leaders who are innovative have the ability to see the connection that exists between profits and ethics. Leaders in the ethical companies have the notion that the company does not suffer any losses in the increase of resources that help it comply with the set ethical rules. People in the UK have grown frustrated by the existing tax loopholes that make the international companies avoid paying taxes or pays very little taxes as compared to the other companies. In England, a group of people took to the streets of London to demonstrate against the tax loopholes that existed in the country (Crane & Matten, 2010, 67).