In Favour of Ethics in Business: The Linkage between Ethical Behaviour and Performance

Abstract

An increasing number of large corporations find themselves caught between two seemingly contradictory goals: satisfying investors’ expectations for progressive earnings’ growth and the stakeholders’ growing demand for ethical conduct. There is an increasing realization across geographies concerning the growing relevance of resolving this issue. The present article is a tool kit for business organizations who want to become ethically fit. The article exhibits the dilemma faced by the corporate world regarding embracing ethics in business. It attempts to establish with the help of some empirical findings that on a broader canvas ethical conduct is contributory towards the bottom line growth. It also suggests that to evaluate the performance of a business the frame of reference has to be changed. Further, it offers tangible suggestions as to what business corporations ought to do in order to get ethically fit.