There are these companies that are so ethical that they are not satisfied with being law-abiding, but also voluntarily take social responsibilities, just like Chiquita, an American firm. It is hard for companies to decide to what extent should they be ethical, because there are pros and cons regarding each sides.
In the case of Chiquita, an American firm which is one of the world’s biggest suppliers of bananas and other fruit, being ethical is giving itself a difficult time. Chiquita tried to be ethical by avoiding fuel from Canadian tar sands, but enraged Canada’s oil industry. It tried to boost gender equity, but didn’t end up attracting more big retailers because of that.
So in conclusion, being ethical can help companies generate goodwill and gain a good reputation (which itself doesn’t sound ethical because it’s in effect interest-oriented). Also, some proprietors of companies may truly have such conscience that they want to contribute more to the society. But on the other hand, creating an ethical brand image may not generate so much profit as they expect. And using money from the companies may impose unsolicited charge on employees, etc. Other times, just like Chiquita, companies will infuriate some stakeholders and cause unnecessary conflicts. Maybe companies can leave their social responsibilities to the society and government, or maybe they can take small responsibilities instead of going too far. To be or not to be— this is still a question.
Reference:
N/A. (2012). Going Bananas. Available: http://www.economist.com/node/21551500. Last accessed 10th Sept 2013.