Taking the time to establish good rapport with clients and other sales people takes time away from the business of making money. When crafting a code, the business must take care not to violate human resources laws or other business-related laws. He has been a college marketing professor since 2004. Jonathan Lister has been a writer and content marketer since 2003. A professional code of ethics requires you to invest your time in inefficient ways. Disadvantages of Business Ethics Reduction in Profits If the company is following ethical route than chances of it earning more profits are less as sometimes for snatching business opportunities from competitors the company has to adopt unethical route. Some companies may even want to organize the standards within a code of conduct in terms of these objectives (for instance, by titling the code’s sections in terms of the company’s values). In the competitive business world where results matter more than politeness, this strategy could cost someone a job. If the businessman works on a commission, not only is he returning smaller profits for his business but he's also taking home less money. Hemera Technologies/AbleStock.com/Getty Images. If different departments are consulted or outside consultants brought in to help with the process, the expenses only multiply. Implementing a professional code of ethics may cause employee production to slip as the focus is taken away from results and work standards, and turned toward creating a happy work environment. The two cannot coexist, which is a major disadvantage. Kokemuller has additional professional experience in marketing, retail and small business. A professional code of ethics restricts a businessman from going after maximum profit in favour of "what's best for the client." A lack of formality in organizational operations in certain cultures is another obstacle for global companies in implementing a code of conduct. His latest book publication, "Bullet, a Demos City Novel" is forthcoming from J Taylor Publishing in June 2014. Smaller Profits A professional code of ethics restricts a businessman from going after maximum profit in favor of "what's best for the client." A code with standards that contradict existing cultural values is tough to implement with strong worker buy-in. Smaller Profits A professional code of ethics restricts a businessman from going after maximum profit in favour of "what's best for the client." This may mean a businessman's sales figures underperform for a given quarter because he's only selling people what they "need" versus what he can convince them they need. Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. This way or another, there areethics Taking the time to establish good rapport with clients and other sales people takes time away from the business of making money. Internal & external business growth strategies, Advantages & disadvantages of multinational corporations, SRA International: Code of Business Ethics and Conduct, A professional code of ethics restricts a businessman from going after maximum profit in favour of "what's best for the client.". A professional code of ethics places value on treating all employees with respect as opposed to respecting performance. Not only do you need to display enforcement that aligns with stated policies, but employees should also believe that leaders consistently apply the code to all workers. Business Development Manager's Job Description. He holds a Master of Business Administration from Iowa State University. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Disadvantages In A Code Of Ethics Code Ethics Issues Ethical codes are adopted by organizations to assist members in understanding the difference between 'right' and 'wrong' and in applying that understanding to their decisions. A code of conduct needs to be routinely enforced in order to be effective. A code of ethics is a beginning, not an end. Cultural challenges often are more of an obstacle. While a code sets expectations on employees, it ideally is viewed as a benefit to the organization. A professional code of ethics requires you to invest your time in inefficient ways. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Losing a big sale to more tenacious competition can severely damage your career. As with other strategic plans or documents, it takes time to create a code of conduct. A professional code of ethics is a set of rules which define how those involved in a given industry or company should interact with clients and conduct business in general. The very idea of parcelling ethics into a formal ‘code’ is also dangerous, if it leads to the attitude that ethics itself is just some separate part of life and of activities; it’s not. If employees pick up on the fact that nothing is ever said or done about violations, the code is worth little more than the paper it is printed on. Ideally, these align conduct standards and enforcement with the goals of the organization.