What Are the Effects of Having a Code of Ethics on Organizations?

• If an organization wants to appeal to people, as well as operating successfully, it also needs a code of ethics. Ethics do more than spell out the right thing to do; any organization with an ethical reputation has an advantage over an organization which doesn't. An ethical organization will seem more trustworthy to people because it gives the impression that it is not all about making money; people will respond with loyalty and continue to support the organization for many years.

The Attraction of an Ethical Company

• The appeal of an organization which has a good, ethical reputation comes when you need to choose between two similar organizations with similar strengths. The decision comes down not to efficiency, but as to who is more worthy of your support. Though one person's ethics may obviously differ from another, an organization which helps the poor, elderly, disabled, children or abused animals would surely appear as ethical in most people's eyes. Political ethics are a different thing altogether, since people's political views can change, especially when the economy does poorly. An organization should stick to having an ethical policy which can stand the test of time.

Ethics Add to a Company's Reputation

• Organizations with a code of ethics still need to prove that they run themselves efficiently. Prepare a code of ethics for your organization, however big or small. Charitable organizations cannot fully function without rock-solid ethics. If a charity's ethics show signs of slipping, then they will have a difficult time restoring their reputation. For other organizations, ethics add to a company's reputation. Even the most successful companies can never have too much of good publicity.

Don't Let Standards Slip

• Any organization which has a good, ethical reputation will come under pressure to maintain that reputation, and if its standards slip, it will cause a great deal of damage. People who have supported an organization will feel a sense of betrayal if an organization doesn't live up to its previous high ideals. An organization should espouse ethics which it can live up to without fear of trying to do too much. No one organization can do everything, and the general public will understand this.