Most successful companies nowadays realize the benefits of exercising ethical behavior. In fact, it seems as though the modern consumer is willing to pay more for a product synonymous with sustainability. I suppose this is in part due to the increased coverage and exposure ethical issues have received in recent years thanks to social networks like Facebook or Twitter. In fact, ethical branding has helped products such as Staples’ “100% recycled copy paper” or Starbucks’ “fair trade coffee” experience immense success.

Smith reminds us that “it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”  Because the free market actually encourages acting out of self-interest, It would be much to expect companies to act morally out of good nature. In our society,  effective company and product branding requires acting with morals, by positively contributing to the local community or by being fair trade or eco-friendly.

Companies that are found to act immorally are most often rigorously scrutinized by both the media and the consumer. For example, the scandal of sweatshop working conditions at Apple’s supplier Foxconn led to serious (although rather brief) criticism of the company’s morals; especially as CEO Tim Cook boasted Apple “has more money than it needs” last February. Although it doesn’t seem as though this scandal has significantly affected Apple sales, I decided to try turning to rival computer manufacturers Samsung, HTC, and Dell.

Other arguments that favor ethical behavior in business are those associated with the working environment. Many studies confirm what most of use have already experienced: a fair workplace will increase employee satisfaction and productivity, which will ultimately benefit all stakeholders.

– Nicholas