A business can offer a great service or innovative product, but with questionable ethics, those might not even matter. Good business ethics are important to any business but to a franchise brand and the long-term sustainability of its franchise network, they’re essential. Helping to create a long-lasting positive reputation for franchisees’ business, strong business ethics translate to a respect from employees and the community they serve.
Business ethics are more than just a concept used to enhance the image of a business – they are the very principles of success and should be applied from the very moment a firm starts trading. Having good business ethics is a quality that can bring infinite realisation to a franchise as customers will always want to do business with a company they trust. That trust is earned not just by the ability to deliver, but also in the manner in which it delivers.
By building on a foundation of ethical behaviour, businesses will have the ability to not only attract and retain highly talented people, but also create customer loyalty and portray a positive public image. Chris Wootton, Managing Director of Poppies shares some of the reasons why good business ethics are essential for franchise brands and how they can help business grow, have bigger profits and a strong bottom line.
Employee ethics
Employees who work for a business that command a high standard of business ethics across all areas of its operations are more likely to perform their job with increased productivity, have a greater morale and stay loyal to their employer for longer. It is the management team who sets the tone or behaviour, so it is vital that they lead the business in an suitable manner to ensure its employees follow in their footsteps.
Poppies prides itself on operating in an ethical manner, giving its workforce a working environment that is safe, secure, flexible and rewarding. By maintaining great relationships with our staff, we create a more positive, co-operative and rewarding work environment for both our management teams and their employees. Everyone is employed directly – a rarity in the cleaning industry where many highly experienced workers are forced to become self-employed – and they have the same benefits as an employee in any other industry, including paid holidays, sick days and career advancement.
Business reputation
Business ethics have become increasingly important to a franchise brand’s reputation, particularly at a time when public opinion can go viral in an instant. Having a good reputation for ethical behaviour can help generate a more positive image for your business, leading to new customers through word-of-mouth. Equally, a reputation for unethical dealings can harm a franchise’s chances to gain new customers, especially when disgruntled customers turn to social media to spread negative experiences.
Businesses should be consistently ethical in how they treat employees, customers and the community, as well as the way they source or build products. This can not only boost franchise sales and public image, but it will also generate positive publicity and strengthen support if ever there was a crisis such as business defamation on social media.
Retaining top talent
To attract the best talent on the market, it’s essential to create a reputation as somewhere candidates want to work. Businesses well-known for their ethical practices, coupled with their services or products, will be able to attract the strongest candidates solely on their reputation within a particular sector or industry.
Poppies’ hiring strategy is based on finding talented, experienced and passionate domestic workers who have a background in the industry and are interested in long-term employment. We understand the value of having brilliant staff, which is why we are so strong in our commitment to treat every single employee fairly and with great respect for the work that they do. Longevity is a frequent term used at Poppies with lots of our staff staying with us for many years due to the flexible packages and employment standards we offer.
Reduces risk
Franchises that practice good business ethics face less risk of fines and other penalties. Tempting as it is to cut corners, such as not complying with labour laws or ignoring worker safety hazards, the penalties for being caught can be brutal resulting in legal fees, fines or sanctions by governmental agencies. Franchises that maintain the highest ethical standards are unlikely to find themselves in these situations.
Benefits the bottom line
Another reason why business ethics is important is that it can improve profitability. Business ethics cultivates trust, which then strengthens branding and increases sales of your services or products. Consumers do care about a business’s ethics and brand values and will stop buying from brands they perceive to be unethical. If a business can communicate their ethics clearly, they are more likely to see consumers spend with them.
Understanding the significance of ethics in business is the key to a franchise’s success. Making good ethical decisions will help your business grow, have bigger profits and a strong bottom line. A company’s ethics and corporate social responsibility matter more today than in previous years, with employees now placing a higher importance on the values of their employers than ever before.
To help sustain a great reputation, avoid significant financial and legal issues and have the top talent working for your business, then now is the time to promote your franchise’s ethical behaviour.
