Ethics and customer loyalty

All organizations are comprised of people and people are not perfect.

Loyalty business model

Types of Cards Loyalty cards can come in many different flavors. A loyal person can, in general be relied upon, and hence people view loyalty as virtuous.

The reward system is aligned with the vision of integrity. For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc.

At best it provides a dead end, at worst it leads to Fundamentalism. For example, the process of strategic planning is much more important than the plan produced by the process.

Organizational Ethics

This booklet is a formal and clearly worded document telling every member of the company the kinds of actions and behavior they are expected to have and the departure from these would result in serious consequences.

See the next section, "Ethics Tools: The issue with God or religion being the source of ethical knowledge, i. An ethics management program may at first actually increase the number of ethical issues to be dealt with because people are more sensitive to their occurrence.

Obtain review from key members of the organization. They have killed many others. Update policies and procedures to produce behaviors preferred from the code of conduct, including, e.

Collect from the above steps, the top five to ten ethical values which are high priorities in your organization see item 7 below for examples.

The Difference Between Ethics And Integrity

Whether we are talking its biggest OEM customers, Microsoft, New Balance, or makers, Intel has, particularly in the last two decades, showcased a distinct lack of loyalty.

When she visited the shop she was utterly disappointed to see that the combinations they had mentioned were far from true and the prices were astronomical compared with the products. Government agencies were established.

Loyalty vs. Ethics: From the White House to the Workplace

People with one loyalty can hold that another, conflicting, loyalty is either legitimate or illegitimate. To produce behavior aligned with this value, organizations often institute policies such as recycling waste, donating to local charities, or paying employees to participate in community events.

For guidance in establishing personnel policies, see the Ethics Tools: Ethics programs tend to detect ethical issues and violations early on so they can be reported or addressed.

However, business ethics was written about even 2, years ago -- at least since Cicero wrote about the topic in his On Duties. Most problems require specific thought and conscious decisions to use proper protocols for sound decision making.

For this final link to hold, the relationship must be profitable. Intel has always seemed to operate under the actual policy that it is okay to do something unless you get caught for it.

The discussion on cultural memes provides a window in how leaders can get good people to do bad things. An increasing number of people asserted that because businesses were making a profit from using our country's resources, these businesses owed it to our country to work to improve society.

You may see religion as a source for light; and it may be for you and millions of others. However, he argued that such associations were faulty and that the notion of loyalty is "an essential ingredient in any civilized and humane system of morals".

Or, provide an anonymous "tip" box in which personnel can report suspected unethical activities, and do so safely on an anonymous basis. Customer Loyalty The ultimate purpose of loyalty cards is to get customers to spend more money. Loyalty cards are an ongoing process.

Ellen has loyalty problems. Ellen Hazard is one of four young adults whose story unfolds in the video portion of Not For Sale: Ethics in The Workplace. She is a newly hired sales clerk in the Young Apparel department of a large department store. The framework detailed in The Loyalty Effect has not only withstood recent challenges, but its relevance has been magnified.

About the Ethical & Practical Aspects of Using Customer Loyalty Cards

The economic framework developed for this book has become the basic standard, not only for Bain & Company case teams around the world, but for an army of business analysts and investors engaged in the evaluation of new business models which utilize the Internet.

The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty.

Outlining Alstom's commitments, the Code of Ethics is designed to promote honest and ethical conduct with all stakeholders: customers, suppliers and contractors, competitors, shareholders, governments, regulatory authorities and the general public.

The American philosopher Josiah Royce ( -- ) taught a form of idealism and rationalism that has few current adherents. In recent years, however, there has been a revival of interest in Royce's ethical and social philosophy as developed in a book, "The Philosophy of Loyalty".

With all that is happening throughout the world in general and the economic crisis that is engulfing our nation in particular, this paper has provided me the opportunity to reflect on my ethics.

Ethics and customer loyalty
Rated 3/5 based on 4 review
The Loyalty Effect - Overview