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Does a moral compass help an enterprise become more competitive? To find out, Sun caught up with Dr. Adam Galinsky, Kaplan Professor of Ethics and Decision in Management at Northwestern University's Kellogg School of Management.
Q: What are the key components of business ethics?
Galinsky: When we talk about business ethics, usually we're speaking about standards of behavior in the workplace as well as with customers and partners. Companies known for high ethical standards usually have an ethical code stating that they treat everyone with dignity, don't present misleading information, and scrupulously follow rules and regulations.
Q: Why should a company be concerned about business ethics?
Galinsky: Having a moral compass leads to more effective business practices — whether in building sales, retaining employees, or reducing litigation and regulation costs. For example, people are usually willing to pay premium prices to feel good about the products they buy. Also, companies that follow certain moral codes attract better people — and these people often are willing to work harder with less compensation. It goes without saying that ethical companies are less likely to undergo the costly scrutiny of courts and regulators.
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