Benefits of Ethical Practices on Long-Term ProfitabilityDuring my years of studying in college I was taught many different aspects of business that must be taken into consideration to ensure long-term profitability term. These topics range from accounting, management, operations, finance, marketing and economics. All of these aspects are really important when running a business, but in today's market I believe that having an exceptional organizational image has clear benefits on long-term profitability. I would define organizational image or "reputation" as the set of actions and decisions taken at all levels of the company over its years of operation. This specific characteristic of a company has growing importance because currently every individual has immediate access to information and therefore if a company commits some wrongdoing, consumers will certainly find out about it and this will greatly influence the future profitability of the company. Some may argue that creating a good image for the company is a waste of time as it diverts attention from the main objective of any company, which is to generate profits for its shareholders. I would argue that since companies generate money from consumers and depend on them to generate profits, they should strive to meet at least the most basic level of corporate social responsibility and give back to communities. In my life I have seen many examples of how weak ethical standards have harmed many major companies. A good example of this would be a Dominican company that wanted to open a cement factory in an environmentally protected area and the Dominican citizens did not allow it to be built, leaving the company with no choice but to exit the Dominican market. (Pozo, 2... middle of paper... of some kind, a transaction based solely on trust. If consumers and investors have any doubt about the company's ability to deliver on its promised position, the company runs the risk of suffering a massive withdrawal of funds. Because of this, financial institutions must ensure that at all times their employees and managers act ethically their reputation will remain intact. Beyond that, I believe that a good ethical policy will also provide organizations with the competitive advantages of innovation, reducing production costs, generating new revenue streams, increasing investor confidence, Attracting higher quality employees and strengthening employee loyalty Overall, ethics policies are important because they form the foundation of top management decision making.