Ethic Profitability Concept
The expression Ethic Profitability was created to try to demonstrate that exist direct profits originated from an ethic performance by the organizations. The profitability of an ethic performance derives directly from the significance and power that the public opinion acquires especially in developed societies. This power of the public opinion makes it impossible, or at least risky, any attempt to earn money based on ethic. The attacks against the environment or against public health, racial discrimination, religious or sexual, misleading publicity, for example, whenever revealed, lead to situations of objection or social disapproval, with negative consequences for the organizations’ corporative image, usually leading to sales breaks and situations of serious financial losses. As aggravating, the lack of ethic forms an important discouragement factor, originating bad organizational atmosphere and the non identification of the employees with the organization, resulting in unavoidable negative consequences at the productivity and efficiency level.
In this context, modern organizations can only be profitable on a long term if they have always present the ethic concept, being, if they have conduct lines that don’t provoke negative externalities in the society and its interests. On the other hand, the organization can only develop if it takes into attention, beyond the financial goals, its social responsibility. The base of the current societies are the organizations (see organizations society concept), therefore these have became the key in the development of populations, progress, culture and civilization. So being, the increasing power of the organizations in the society should be counterbalanced by increased social responsibilities. Organizations should begin to perform part of the traditional role of the State in the defense of social interest questions otherwise may be sanctioned by the society in general.
This way, ethic and assuming responsibilities before the society can be converted in one of the main assets of the organization, since it creates trust and shows a good image of it near all who with it relate (being shareholders, employees, suppliers, clients or public opinion in general). So, in a world of increasing globalization of competition, becomes advantageous to meet the society’s expectations.
