ethics

• what does ethics mean

  businesses making decisions based on what is morally right rather than what is more profitable
• benefits of behaving ethically

  -higher revenues-customers are increasingly making purchasing choices based on ethics

  -improved brand awareness and recognition

  -easier to attract and recruit staff

  -increased employee motivation and staff retention

  -new sources of finance possible eg from ethical investors
• disadvantages of behaving ethically

  -higher costs eg sourcing from Fairtrade suppliers rather than from suppliers offering the lowest prices

  -danger of building up false expectations amongst consumers

  -bad publicity if business is found to be acting unethically