Neglect of a Business's Moral Obligations by Managers Could Lead to Adverse Outcomes
In many organisations, prioritising short-term gains over ethical considerations can have a significant and detrimental effect on employee morale, trust, loyalty, turnover, and absenteeism.
This approach often leads to a lowering of employee morale, as workers perceive a disregard for fairness and ethical standards. This dissatisfaction and disengagement can be damaging to the work environment and productivity.
The erosion of trust in leadership is another common consequence. Employees recognise that decisions favour immediate profits rather than long-term wellbeing and fairness, undermining the credibility of management.
Weakening of loyalty is also a likely result. The perception that the company values profits over people makes employees less emotionally and psychologically committed to the organisation. This can lead to increased turnover rates, as dissatisfied and mistrustful employees seek employment elsewhere to find a more ethical and supportive culture.
Raised absenteeism and reduced overall engagement are further potential issues. Demoralised employees may withdraw effort, possibly using absenteeism as a coping mechanism for workplace dissatisfaction.
Toxic work environments created by unethical short-term focus can spread dissatisfaction beyond individual workers, disrupting team dynamics and causing widespread negative impacts on productivity and workplace culture.
Businesses that focus only on immediate gains risk harming their reputation and stakeholder trust, which compounds employee disengagement and turnover. In contrast, ethical leadership that prioritises long-term value fosters stronger trust, respect, and engagement, which supports employee retention.
In summary, short-termism that neglects ethics usually results in systemic employee dissatisfaction, manifested through lowered morale, lost trust, diminished loyalty, increased turnover, and higher absenteeism. These factors all undermine sustainable organisational success. It is essential for leaders to prioritise ethical considerations to maintain a positive work environment, foster employee engagement, and ensure long-term success for the organisation.
- Implementing a leadership style that prioritizes short-term gains over ethics and diversity-and-inclusion can result in a workforce that is demoralized, disengaged, and disloyal, leading to a high turnover rate and a toxic work environment that negatively impacts productivity and business careers.
- Conversely, organizations that emphasize ethical leadership, prioritizing long-term value, fairness, and diversity-and-inclusion, foster trust, respect, engagement, and a supportive culture that retains employees and contributes to sustainable organizational success in both finance and business careers.
