by Matthew J. Geiger

Created on: February 13, 2010

Perception is everything in ensuring the products and services of a business are embraced by consumers.  Of course, this perception goes beyond what customers think of the actual products and services a company offers.  The image of the business also impacts the buying habits of the firm’s current and potential customers.  An unethical company is, therefore, less likely to be supported by consumers; whereas, an ethical firm can be more competitive in the long run and successful, even with higher prices.

A strong culture of ethics is one way of guaranteeing a company will look good.  Ethics exist to control the long-term and unrealized costs associated with the behavior of employees.  By taking ethical consideration into account, all levels of employment are forced to recognize what ill effects will be felt by the firm, other employees, consumers, and surrounding communities.  This kind of training will help dissuade employees from engaging in poor behavior.  Consequently, having ethical employees will make a firm look good, because it will be good.

Consumers, as the key representatives of society for businesses, need businesses that they can trust to actually take their interests into account.  As consumers evolve, they learn to understand the value of a trustworthy business.  Asking how a particular producer can offer its goods at a lower price is part of that evolution.  Whether a product is inferior, contains unhealthy fillers, or workers are treated unfairly, consumers can use this information to determine if a business is willing to hurt customers for short-term gains.

An unscrupulous company will always look after its immediate perceived interests first versus the interests of its consumers.  How a firm operates, treats its employees, and views the communities in which it operates shows what sort of activities a business may engage in when no one is around.  This means consumers cannot trust businesses that appear to be socially irresponsible.  As such, a firm perceived to ethical can become more successful in the long run.

Unfortunately, perception does not always reflect reality.  While a business can simply work to create a good image, its poor behavior will eventually come to light.  Whether an internal agent decides to undermine a firm or a competitor learns to use a company’s weaknesses against it, an image is not enough when the superficial strategy blows up in the face of a company and its interests, public trust, and the benefits, which come with the status of a trusted business, will be even harder to earn back.

Learn more about this author, Matthew J. Geiger.
Click here to send this author comments or questions.