"Companies showing commitment to ethical conduct consistently outperform in comparison to those which do not show." Comment.

More and more companies have begun to recognize the relation between business ethics and financial performance. Companies displaying a "clear commitment to ethical conduct" consistently outperform those companies that do not display an ethical conduct. Adherence of business ethics results in the following benefits - Attracting and retaining talent The ethical climate matters a lot to the employees. A company that adheres to ethical values and dedicatedly takes care of its employees is rewarded with equally loyal and dedicated employees. Talented people like to offer their services on continuous basis in such organisations which adhere to ethical values. Investor loyalty Investors are concerned about ethics, social responsibility and reputation of the company in which they invest. Investors are becoming more and more aware that an ethical climate provides a foundation for efficiency, productivity and profits. Customer satisfaction Customer satisfaction is a vital factor of a successful business strategy. Repeated purchases/ orders and an enduring relationship with mutual respect are essential for the success of the company. Ethical conduct towards customers builds a strong competitive position for the company. Regulators Regulators eye companies functioning ethically as responsible citizens. The regulator need not always monitor the functioning of the ethically sound company. Further, any organisation that acts within the confines of business ethics not only earns profit but also gains reputation publicly.