Benefits and effect of Ethical Behaviour

The main benefits for a business of behaving ethically are:

  1. Avoidance of expensive and embarrassing PR disasters.
  2. Better image with consumers and better sales.
  3. Better recruitment.
  4. Better employee motivation because employees are proud of their jobs.
  5. Increased costs as businesses try to do what is expected e.g. not pay bottom wages, or dump pollution cheaply at sea.
  6. Conflict between profit and ethical standards.
  7. Business practice and organizational culture will have to be changed.
  8. Changes in relations with suppliers. This may mean passing the same standards down the supply chain, and severing relations with suppliers not prepared to meet the same standards.

Last modified: Saturday, 9 October 2021, 5:02 AM