Ethics have a large impact upon the brand image of a firm, and ultimately their profits. BBC’s article gives a prime example of industries facing difficulty in following the ethical methods expected by their consumers. It’s not easy for companies like Kellog’s or General Mill’s to maintain low prices and still follow the expected ethical production methods. For example, it is easy to take advantage of poorer countries’ low costs.

However, I see from this article that concealing information about how food is produced leads to low ratings and a bad public image, which may impact their sales. Companies like Coca-cola or Nestle, who produce their goods with more ethical methods, have better public image as they are highlighted in the article for using proper production methods. This may lead them to higher sales and more loyal customers. This is also illustrated in Calen’s blog with his example of Fifa and Shuhan’s blog about McDonald’s, where both their unfair treatment to workers lowered their reputation. Therefore, I think it is important to follow certain ethics expected by the public to maintain a good company image and earn loyal supporters for their brand.

Source: http://borgenproject.org/wp-content/uploads/KelloggsShortfall.jpg

Reference: http://www.bbc.com/news/uk-21582992