Link to original blog post: Can Ethical Practices Increase Profits?

I agree with the point that Raza is putting across, I believe there is much more to the link between ethics and economic return that what is exposed on that entry. The lack of ethics dealt with throughout such post have an immediate negative impact on the consumer, therefore, the customers move away from Product Y because of the health-related consequences it has on their skin: not because of the ethics.

Coming from a developing country, my experience tells me otherwise: unethical practices – most frequently than not – increase profits. Most products decide to turn eco-friendly by making their packages biodegradable or out of recycled materials, which is more expensive than normal plastic. Unluckily, most Salvadoreans cannot afford a more expensive package whose only benefit is a reduction on their footprint on the ecosystem, regardless of their good intentions.

Therefore, in most cases, as long as they do not have an immediate negative impact on the consumer, being ethical does not actually increase profits. The article itself somewhat supports my point since Company  X (the ethical one) does not actually make more profit by abiding by social expectations, instead, Company Y decreases theirs by not doing so.

First Nations’ Rights & Mining

After several proposals, Taseko’s New Prosperity Mine faced another obstacle. This company looks for exploiting the natural resources in  B.C.’s Chilcotin region, now earmarked as a tribal park by the Tsilhqot’in First Nation. The project would not only destroy the environment to which they have been adapted for centuries, but will as well permanently harm the habitat, wildlife, grizzly bears and salmon spawning areas. Although mining brings about millions of dollars, there are still people who are willing to protect the Canadian landscapes. The tribe actually stated that they would compromise some resource development in the area, but much lighter than what it is being plan at the moment. It is amazing how the Tsilhqot’in people are so willing to co-operate with businessmen against their own land whereas Taseko is looking forward to getting as much as they legally can from this area: regardless of the harm done. Canada – particularly British Columbia – prides itself with its amazing landscapes, wildlife and outdoor opportunities, however, Canada is also one of the largest mining nations in the world, “producing more than 60 minerals and metals“. Many Canadians, however, are against this nature:

Advert.

Audi recognizes its competitors’ superiority in their particular ladders: Alpha Romeo as design, Mercedes Benz as comfort, Volvo as safety, and BMW as sportiness. They clearly acknowledge that through their advertisements yet they create a whole new category for themselves: the all-in-one. I find this could work both ways for Audi – either really good or really bad, nothing in between.

Some costumers may perceive such idea as convenient because it is a car with all rounded outstanding features. Why would a costumer settle down for a single point of differentiation if Audi brings all of them together in a single car? Therefore – ideally – more people would like to buy Audi cars instead of any other top brands (interesting that they did not include any cheaper brand).

On the other hand, other costumers may look at the other side of the coin and find that Audi is not actually specifically good at anything and just mediocre at everything. Regardless of how good or bad Audi is, many buyers would rather choose a preference of their own and go for a single special feature that any other top brand sells.