Advantages And Disadvantages Of Being An Ethical Business

Ethical issues Ethics are moral guidelines which govern good behaviour, so behaving ethically is doing what is morally right. If you’re an ethical business then you would have a slight edge over your competitors, who aren’t ethical. As trust between the customers and the shop develop and they remain loyal to the business even during difficult period. This establishes a new kind of customers even if they aren’t a lot of them, customers who could always continue buying from Mc Donald as they learn to trust ethical brands sold by the company. However, being an ethical business would cost a business more money so would reduce a company’s freedom to maximize its profit. For example: due to the horse meat incident of Tesco’s people started not†¦show more content†¦The resulting negative publicity can cause long-range damage to the company’s reputation. Disadvantages of being an ethical business The cost of the business would increase as the expenses would increase. As corporations and business pay foreign workers a minimum wage or even lower to make their products, which wouldn’t cost business large sum of money. But if a business was to act ethically, the cost of paying the worker would go significantly high as government expects a business to pay every worker fairly so this would decrease the profits generated. Also, being ethical reduces the freedom to maximise its profit as a business would move its manufacturing facility to a LEDC. This would reduce the cost as practices like child labour, poor health and safety are acceptable in the country due to lack of law and regulations. In addition, there would be additional cost to a business as they need to train their management and the employees to the highest standard so they are respectful and obedient towards the customers and are expert in their chosen field. To conclude, business who are ethical get more business as the customers are loyal to them and trust them for example, if there is a new product in the market; it would take a long time for the customer to trust that product however if you have been ethical in the past the customers would buy theShow MoreRelatedWhat Are Advantages and Disadvantages of Ethical Behavior in Business?†1741 Words   |  7 PagesEssay: â€Å"what are advantages and disadvantages of ethical behavior in business?† Business Ethics Some commentators, such as Milton Friedman, believe that the primary and only responsibility of business is to make money while abiding by the law. Supporters of this point of view argue that companies self-interested pursuit of profit benefits the whole of society. 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