Business reasons for adopting ethical strategies

Question

What are the business reasons for adopting ethical strategies?

Answer 1

There are solid business reasons to take on ethical strategies even if most company managers are not of powerful moral character and personally committed to high ethical principles:

i. Pursuing unethical strategies puts a company’s status at high risk and can do lasting harm.

ii. Rehabilitating a company’s shattered status is costly and time consuming.

iii. Consumers shun companies known for their shady behavior.

iv. Companies with status for unethical conduct have significant trouble in recruiting and retaining talented employees.

Key Concept:

Conducting business in an ethical style is in a company’s enlightened self-interest.