Menu

Behaving ethically can lead to higher profits for a company

0 Comment

Behaving ethically can lead to higher profits for a company Operating an ethical business is rewarding and can be thebest way to get profits for a company. That is evident from the fact that most companies that uphold business ethics have the highest returns and profitability. Ethical businesses respond to customers’ demands and maintain great relationship with employees and other stakeholders. It is justified to argue that embracing ethical business operations is rewarding to a company or business through high income, based on two aspects outlined in this essay. First, a successful company with a highly famous brand and embraces ethical business operations gain customers’ trust. Companies have different programs to expand their brand popularity. Joyner highlights an example of Toms, a renowned shoe company, as among the businesses that embrace ethics in their operations (1). According to Joyner, business that embrace social responsibility have started to favor the buy one, give one strategy. For every pair sold by Toms, it gives a pair. The company donates the pair to children in developing regions such as Malawi, Haiti, or Peru. By 2014, Toms had donated nearly ten million pairs of shoes and currently experiences massive sale volumes for its shoe brands. Remarkably, donations have served to expand Toms’ shoe brand dominance in the market because customers buy with the urge to help the needy. Besides having high quality shoe brands, Toms’ selling strategy has contributed to its market expansion. Particularly, it enjoys high sales among the youths. It sells brands that are highly appealing to teenagers. That justifies its strong brand and high sales. Among the vital responsibilities of every business that embraces ethical operations is to ensure employees receive decent salaries and work in safe conditions. Employees are critical to business’ success and should be subject to safe working conditions. An example of unethical business is the case of Rana plaza that collapsed in Bangladesh, resulting in the death of 1137 people. By 2014, April 24 nearly 250 people were mission since the incidence that occurred on April 24, 2013, a year on (Institute for Global Labor and Human Rights, 2014). The Rana Plaza factory collapse accident has been termed a fatal and deadliest disaster. The case represents poor working conditions in which employees are exposed to eminent danger. Furthermore, the employees lack proper insurance cover. That represents unethical business operations. According to the report by the Institute for Global Labor and Human Rights (1), developed countries such as the U.S. outsource jobs their developing counterparts with little regard for workers’ conditions. The report outlines that 32 U.S., Canadian, and European labels and other retailers had outsource their garments to the five factories in Rana Plaza. The institute proposed a law to enhance protection of workers, globally. In essence, every business should ensure ethical operations. As evident in the case of Toms, it is important to embrace ethical operations through initiatives such as corporate social responsibility and donations. It increases profitability of the business. Unethical operations such as disregard for workers’ rights, however, lead to losses as evident in the case of Rana Plaza collapse accident. Behaving ethically, therefore, can lead to higher profits for a company.Works CitedJoyner, April. Beyond Buy-One-Give-One Retail. The New Yorker. April 7, 2014. Web. April 27, 2015. http://www.newyorker.com/business/currency/beyond-buy-one-give-one-retailInstitute for Global Labour and Human Rights. Rana Plaza: A look back, and forward. April, 24 2014. Web. April 27, 2015. http://www.globallabourrights.org/alerts/rana-plaza-bangladesh-anniversary-a-look-back-and-forward