Ethical and environmentally friendly companies can
charger higher prices. This is because consumers place a high
value on goods which do not damage the environment and
are willing to pay a higher price for them
Workers are more motivated if they are treated well, so will
work harder. They are also less likely to leave to go to a better
company, reducing recruitment and training costs. It can also
attract highly skilled workers to want to work for you
If firms claim to be ethical but are found to have unethical
practices, it can be very damaging to the brand. E.g. VW
when they were found to be lying about how much
emissions their card emit which led to a loss in sales
Not exploiting suppliers with their power, and paying
suppliers a fair price can lead to increased costs.
This can be seen through paying employees higher wages or
paying more for electric vans for transportation
Consumers often avoid firms which are unethical. This is
becoming more and more popular and firms such as
supermarkets who offer fair trade goods are increasingly
popular and receive positive publicity
You will develop a good relationship with your supplier if
you treat them fairly. They are more likely to want to keep
you happy as a customer, so may offer you goods that are in
short supply or the best payment terms
By deciding not to offer bribes or incentives to companies to
win contracts unfairly, they may result in lost sales
